Sale Of Goods

by Chomsky, Carol L.

• ISBN13: 9780314149756
• ISBN10: 0314149759
• Format: Hardcover
• Copyright: 2004-07-30
• Publisher: West Academic

Summary

This law school textbook uses precisely crafted problems, allowing students to actively parse the language of Article 2 of the Uniform Commercial Code (UCC) themselves, rather than relying more passively on cases or explanatory text. Cases and other material are included when necessary to furnish rules or interpretations not derivable by students' own reading and analysis. The book also incorporates relevant material from Articles 1 and 7, and from related statutes such as Uniform Electronic Transactions Act (UETA), the federal Electronic Signatures in Global and National Commerce Act (E-Sign), and an assignment on the economic loss doctrine.

Table of Contents

Preface to Students	i
Acknowledgments	iii
Table of Statutes and Regulations	xix
Table of Cases	xxvi
Table of Secondary Authorities	xxviii
Concordance of Article 1 Sections	xxix
Assignment 1: Scope of Article 2 (``Sale'' of ``Goods'')	1	(26)
§§ 2-102; 2-103(1) (a), (d); 2-105(1), (2); 2-106(1); 2-107(1), (2); 2-304; 2-501(1)
An Overview of Article 2	1	(2)
Learning the UCC	3	(1)
Foundational Principles for Article 2 and a Seven-Step Method For Learning a Statute	4	(14)
Using Cases	18	(1)
Reading and Applying the Code	19	(1)
Reading the Code	20	(3)
Problem 1-1. The Scope Provision	20	(1)
Problem 1-2. ``Goods.''	21	(2)
Applying the Code	23	(3)
Problem 1-3	23	(1)
Problem 1-4	24	(2)
Note on the Amended Definition of ``Goods''	26	(1)
Assignment 2: Scope and Mixed Transactions	27	(15)
§§ 1-103, 2-102
Reading the Code (and its Case Law)	30	(1)
Problem 2-1. Three Approaches to Mixed Transactions	30	(1)
Applying the Code (and its Case Law)	31	(4)
Problem 2-2	31	(1)
Software, ``Smart Goods,'' and Article 2	32	(2)
Problem 2-3	34	(1)
Pass v. Shelby Aviation, Inc.	35	(7)
Assignment 3: Interpretive Guidelines for Construing the Code	42	(8)
§§ 1-102; 1-103; 1-109; 1-201(3), (11), (42); 1-203; 1-205; 2-208; 2-209(1), (4); 2-302; 2-305; 2-306; 2-307; 2-308; 2-309; 2-725(1)
Reading the Code	42	(5)
Problem 3-1. Purposes and Construction of the UCC	42	(1)
Problem 3-2. Mandatory versus Default Provisions	43	(1)
Problem 3-3. Agreement, Contract, Course of Dealing, Course of Performance, and Usage of Trade	44	(2)
Problem 3-4. Hierarchy of Terms and Provisions	46	(1)
Overlaps among Course of Performance, Modification, and Waiver	46	(1)
Problem 3-5. Open Price Terms	47	(1)
Applying the Code	47	(3)
Problem 3-6	47	(1)
Problem 3-7	48	(2)
Assignment 4: Contract Formation by Offer and Acceptance or by Conduct	50	(15)
§§ 1-204, 2-204, 2-205, 2-206, 2-207(1), first sentence of 2-207(3)
Reading the Code	50	(4)
Problem 4-1. Firm Offers	50	(1)
Problem 4-2. Formation in General	51	(1)
Problem 4-3. Acceptance by Promise or Conduct	52	(1)
Problem 4-4. Battle of Forms, Round 1	52	(1)
Problem 4-5. Battle of Forms, Round 2	53	(1)
Applying the Code	54	(11)
Problem 4-6. Definite and Seasonable Expression of Acceptance	54	(2)
Problem 4-7. Expressly Conditional ``Acceptance''	56	(2)
Problem 4-8. Scope of 2-207(1)	58	(1)
Problem 4-9. Contract Formation in an Electronic Setting	58	(6)
Problem 4-10. Battle of Forms, Round 3	64	(1)
Assignment 5: Determining the Content When Offer and Acceptance Differ: Battle of Forms	65	(30)
§ 2-207(2), (3)
Reading the Code	65	(7)
Problem 5-1. Terms in Contracts Created by Conduct	65	(1)
Problem 5-2. Additional Terms in Contracts Created by Offer and Acceptance	65	(1)
Problem 5-3. Material Alteration	66	(1)
Problem 5-4. Different Terms in Contracts Created by Offer and Acceptance	67	(2)
Problem 5-5. Additional and Different Terms in Acceptances	69	(1)
Problem 5-6. Additional and Different Terms in Confirmations	70	(1)
Problem 5-7. Overview of 2-207	71	(1)
Applying the Code	72	(13)
Problem 5-8	72	(2)
Problem 5-9	74	(3)
``Terms in the Box''	77	(4)
Problem 5-10	81	(2)
Problem 5-11. ``Battle of Forms'' Under the 2003 Amendments	83	(2)
Daitom, Inc. v. Pennwalt Corp	85	(10)
Assignment 6: Contract Enforceability (Statute of Frauds)	95	(9)
§ 2-201
Reading the Code	96	(2)
Problem 6-1. Requirement of a Signed Writing: General Rule	96	(1)
Problem 6-2. Requirement of a Signed Writing: Exceptions	96	(1)
Problem 6-3. Nature of the Required Writing	97	(1)
Problem 6-4. Confirmations Between Merchants	97	(1)
The Statute of Frauds Meets Electronic Commerce	98	(1)
Applying the Code	98	(6)
Problem 6-5	99	(3)
Problem 6-6. Estoppel and the Statute of Frauds	102	(2)
Assignment 7: The Definition of Merchant	104	(8)
§ 2-104(1), (3)
Reading the Code	104	(4)
Problem 7-1. Goods Merchants vs. Practices Merchants	104	(1)
Problem 7-2. ``By His Occupation''	105	(1)
Problem 7-3. ``Deals''	105	(1)
Problem 7-4. Effect on Other Code Sections	105	(3)
Applying the Code	108	(4)
Problem 7-5	108	(1)
Problem 7-6	109	(1)
Problem 7-7	110	(1)
Problem 7-8	110	(1)
Note on Farmers as Merchants	111	(1)
Assignment 8: Introduction to Warranties; Creation of Implied Warranties	112	(9)
§§ 2-312, 2-314, 2-315
Reading the Code	113	(3)
Problem 8-1. Introduction to Warranties	113	(1)
Problem 8-2. Introduction to Implied Warranties	114	(1)
Problem 8-3. Relation Between Warranties and Other Provisions	115	(1)
Problem 8-4. Scope and Timing of Implied Warranties	115	(1)
Applying the Code	116	(5)
Problem 8-5	116	(1)
Problem 8-6	117	(1)
Problem 8-7	118	(1)
Problem 8-8	119	(1)
Problem 8-9	120	(1)
Assignment 9: Creation of Express Warranties	121	(18)
§ 2-313
Reading the Code	121	(14)
Problem 9-1. Introduction to Express Warranties	121	(1)
Problem 9-2. ``Part of the Basis of the Bargain'' and its Relationship to Reliance	122	(3)
Representations by Remote Sellers	125	(1)
Representations Made after Contract Formation	126	(1)
Problem 9-3. Representations in Advertising	126	(2)
Problem 9-4. Representations Made after Contract Formation (Including ``Representations in a Box'')	128	(3)
Problem 9-5. Puffing	131	(4)
Applying the Code	135	(4)
Problem 9-6	135	(1)
Problem 9-7	136	(1)
Problem 9-8	137	(2)
Assignment 10: Warranty Disclaimers and Conflicts	139	(14)
§§ 2-312, 2-316, 2-317
Reading the Code	139	(2)
Problem 10-1. Disclaiming Express Warranties	139	(1)
Problem 10-2. Disclaiming Implied Warranties	139	(2)
Applying the Code	141	(12)
Problem 10-3	141	(1)
Problem 10-4	142	(1)
Problem 10-5	143	(2)
Problem 10-6. Disclaimers Packaged with or Accompanying the Goods	145	(2)
Magnuson-Moss Warranty Act	147	(3)
Problem 10-7. Effect of the Magnuson-Moss Warranty Act	150	(1)
Problem 10-8	151	(1)
Problem 10-9. Cumulation and Conflict of Warranties	151	(2)
Assignment 11: Extending Warranties to Third-Party Beneficiaries	153	(8)
§ 2-318
Reading the Code	154	(1)
Problem 11-1. Differentiating Among the 2-318 Alternatives	154	(1)
Applying the Code	155	(6)
Problem 11-2. Applying 2-318	155	(3)
Problem 11-3. Extending Warranty Coverage Beyond 2-318	158	(1)
Problem 11-4. The 2-318 Limit on Seller's Power to Disclaim	159	(1)
Problem 11-5. The 2003 Amended Version	160	(1)
Assignment 12: Parol Evidence Rule: Suppression of Evidence of Express Warranties	161	(29)
§ 2-202
Reading the Code	161	(10)
Problem 12-1. Operation of the Parol Evidence Rule with Respect to Confirmations	162	(2)
Problem 12-2. ``Final Expression''	164	(1)
Problem 12-3. ``Complete and Exclusive Statement''	164	(1)
Problem 12-4. Parol Evidence and the Complete and Exclusive Statement	165	(1)
Problem 12-5. Admissibility and Effect of Evidence of Course of Dealing, Usage of Trade, and Course of Performance	166	(1)
Problem 12-6. ``Prior Agreement'' and ``Contemporaneous Oral Agreement''	167	(1)
Problem 12-7. Putting All the Pieces Together	168	(1)
Parol Evidence Chart: Is the Evidence Offered Admissible?	168	(1)
Problem 12-8. Comment 3 Restriction	169	(1)
Problem 12-9. Implied Warranties and the Parol Evidence Rule	170	(1)
Problem 12-10. Interaction Between 2-316 and 2-202	170	(1)
Problem 12-11. The 2003 Amended Version	171	(1)
Applying the Code	171	(5)
Problem 12-12	171	(2)
Problem 12-13	173	(1)
Problem 12-14	174	(1)
Problem 12-15	175	(1)
Problem 12-16	175	(1)
Nanakuli Paving and Rock Company v. Shell Oil Company, Inc.	176	(14)
Assignment 13: Identification, Tender of Delivery, Risk of Loss, and Passage of Title	190	(17)
§§ 2-319, 2-320, 2-401, 2-501, 2-503, 2-504, 2-509
Reading the Code	190	(14)
Understanding the Diminished Role of Title in Article 2	190	(1)
Identification of Goods	191	(1)
Problem 13-1. Timing of Identification	192	(1)
Problem 13-2. Early Identification	193	(1)
Tender of Delivery	193	(1)
Problem 13-3. Introduction to Tender of Delivery	194	(1)
Tender of Delivery via Carrier or Warehouse	194	(1)
Problem 13-4. Fulfilling Tender Obligations	195	(1)
Risk of Loss in Absence of Breach	196	(1)
Problem 13-5. Introduction to Risk of Loss	197	(1)
Problem 13-6. Moment of Risk-of-Loss Passage	198	(1)
Problem 13-7. Implications of Risk of Loss	198	(1)
Problem 13-8. Specific Delivery Terms	199	(1)
Paying for the Freight	200	(1)
Problem 13-9. Introduction to Freight	200	(1)
Domestic Shipping Terms Without the UCC	201	(1)
Passage of Title	202	(1)
Problem 13-10. Introduction to Title	202	(1)
Problem 13-11. Tying It All Together	203	(1)
Applying the Code	204	(3)
Problem 13-12	204	(1)
Problem 13-13	205	(1)
Problem 13-14	205	(2)
Assignment 14: Documentary Transactions	207	(20)
§§ 2-310, 2-503, 2-504, 2-505, 2-512, 2-513, 7-102, 7-104, 7-501, 7-502
Reading the Code	207	(18)
Conducting a Documentary Transaction	207	(1)
Problem 14-1. Understanding Basic Terminology	208	(2)
Negotiability	210	(1)
Problem 14-2. Negotiability	211	(1)
Problem 14-3. Negotiating a Tangible Document of Title	212	(1)
Note on Negotiating an Electronic Document of Title	213	(1)
Problem 14-4. Duly Negotiating a Document of Title	213	(1)
Using Negotiable Instruments (Drafts) in Sales Transactions	214	(1)
Using Both Documents of Title and Drafts	215	(1)
Article 2 and Documents of Title	216	(1)
Determining Whether Documents of Title May Be Used	217	(3)
Problem 14-5. Shipment Under Reservation	220	(1)
Seller's Delivery Responsibilities When Using Documents of Title	220	(1)
Problem 14-6. Tendering Documents	220	(1)
Risk of Loss and Documents of Title	221	(1)
Problem 14-7. Shifting Risk of Loss	221	(1)
Buyer's Obligation to Pay When Documents of Title Are Used	222	(1)
Problem 14-8. When and Where Buyer is Obligated to Pay: Default Provisions	222	(1)
Buyer's Right to Inspect the Goods	223	(1)
Problem 14-9. Buyer's Right to Inspect	223	(1)
Problem 14-10. Excusing Payment Before Inspection	224	(1)
Applying the Code	225	(2)
Problem 14-11	225	(1)
Problem 14-12	226	(1)
Assignment 15: Power to Transfer Title	227	(11)
§ 2-403
The Derivative Title Rule	227	(1)
Problem 15-1. Transferors and Purchasers	227	(1)
Voidable Title	228	(1)
Problem 15-2. Derivative Title Rule	229	(1)
Void Title	230	(1)
Problem 15-3. The Effect of Void Title	230	(1)
Acquiring Better Than Derivative Title: The Good Faith Purchaser for Value	231	(1)
Problem 15-4. Parsing 2-403(1)	231	(1)
Problem 15-5. Applying the Exception for the Good Faith Purchaser for Value	232	(1)
Acquiring Better Than Derivative Title: Buyer in the Ordinary Course of Business	233	(1)
Problem 15-6. Parsing 2-403(2) and (3)	233	(1)
Problem 15-7. Applying the Exception for the Buyer in the Ordinary Course	234	(1)
Problem 15-8. Comparing 2-403(1) and (2)	235	(1)
Problem 15-9. Putting All the Pieces Together	236	(1)
Note on Certificate-of-Title Acts	237	(1)
Assignment 16: Excuse	238	(5)
§§ 2-613 through 2-616
Reading the Code	238	(2)
Problem 16-1. Comparing the Article 2 Excuses	238	(2)
Problem 16-2. Operation of 2-613 and 2-615	240	(1)
Applying the Code	240	(3)
Problem 16-3	241	(1)
Problem 16-4	241	(1)
Problem 16-5	241	(1)
Problem 16-6. Force Majeure Clauses	241	(2)
Assignment 17: Buyer's Rights and Duties after Tender, Part I: Inspection, Rejection, and Cure	243	(15)
§§ 2-508, 2-601 through 2-605, 2-612
Reading the Code: Rejection of Goods by Buyer	244	(3)
Problem 17-1. The Right to Reject	244	(1)
Problem 17-2. The Process of Rejection	245	(1)
Problem 17-3. Handling Goods After Rightful Rejection	246	(1)
Reading the Code: Cure of Nonconformity by Seller	247	(3)
Problem 17-4. Seller's Right to Cure	247	(1)
Problem 17-5. Expanding the Definition of Cure	248	(1)
Problem 17-6. Cure After Performance Is Due; Money Allowance	248	(1)
Time for Rejection and the Reasonable Opportunity to Inspect	249	(1)
Applying the Code: Rejection and Cure	250	(2)
Problem 17-7	250	(1)
Problem 17-8	250	(1)
Problem 17-9	251	(1)
Problem 17-10	251	(1)
Wilson v. Scampoli	252	(3)
Bartus v. Riccardi	255	(3)
Assignment 18: Buyer's Rights and Duties after Tender, Part II: Acceptance and Revocation of Acceptance of Goods, Risk of Loss in Presence of Breach	258	(16)
§§ 2-510, 2-606 through 2-608, 2-717
Reading the Code: Acceptance of the Goods	258	(6)
Problem 18-1. What Constitutes Acceptance	258	(1)
Problem 18-2. Acts Inconsistent With Seller's Ownership	259	(1)
Problem 18-3. Consequences of Acceptance	260	(1)
Problem 18-4. Notifying Seller of Breach	260	(1)
Notice Under 2-607	261	(1)
Buyer's Reasonable Opportunity to Inspect	262	(2)
Applying the Code: Acceptance of Goods	264	(3)
Problem 18-5	264	(2)
Problem 18-6	266	(1)
Reading the Code: Revocation of Acceptance of Goods	267	(2)
Problem 18-7. Justifiable Revocation	267	(1)
Problem 18-8. Comparing Rejection and Revocation	268	(1)
Problem 18-9. Cure After Revocation	268	(1)
Applying the Code: Revocation of Acceptance	269	(2)
Problem 18-10	269	(2)
Reading the Code: Effect of Breach on Risk of Loss	271	(1)
Problem 18-11. Effect of Seller's Breach on Risk of Loss	271	(1)
Problem 18-12. Effect of Buyer's Breach on Risk of Loss	271	(1)
Applying the Code: Effect of Breach on Risk of Loss	272	(2)
Problem 18-13	272	(1)
Problem 18-14	272	(1)
Problem 18-15	273	(1)
Assignment 19: Insecurity, Repudiation, and Retraction	274	(5)
§§ 2-609 through 2-611
Reading the Code	274	(3)
Problem 19-1 Right to Adequate Assurance of Performance	274	(1)
Problem 19-2. Anticipatory Repudiation	275	(1)
Problem 19-3. Retraction of Repudiation	276	(1)
Applying the Code	277	(2)
Problem 19-4	277	(1)
Problem 19-5	278	(1)
Assignment 20: Buyer's Remedies for Seller's Breach	279	(15)
§§ 2-502, 2-711 through 2-717, 2-723
Reading the Code	280	(8)
Problem 20-1. Buyer's Remedies for Unaccepted Goods	280	(2)
Problem 20-2. Buyer's Recovery of the Goods from the Seller	282	(1)
Problem 20-3. Comparing Buyer's Cover and Market Damages	283	(1)
Problem 20-4. Expenses Saved Because of Breach	284	(1)
Problem 20-5. Incidental and Consequential Damages	285	(1)
Problem 20-6. Choosing between Cover and Market Damages	286	(1)
Problem 20-7. Buyer's Damages for Accepted Goods	287	(1)
Problem 20-8. Liquidated Damages	288	(1)
Applying the Code	288	(6)
Problem 20-9	288	(4)
Problem 20-10	292	(1)
Problem 20-11	293	(1)
Assignment 21: Seller's Remedies for Buyer's Breach	294	(17)
§§ 2-702 through 2-710, 2-718
Reading the Code	294	(15)
Problem 21-1. Overview of Seller's Remedies	294	(2)
Problem 21-2. Comparing Seller's Resale and Market Damages	296	(1)
Problem 21-3. Expenses Saved Because of Breach	297	(1)
Problem 21-4. Incidental and Consequential Damages	298	(1)
Problem 21-5. Requirements for Resale	299	(1)
Problem 21-6. Choosing between Resale and Market Damages	299	(2)
Problem 21-7. Recovery of Prepayment by Breaching Buyer	301	(1)
Problem 21-8. Action for the Price	302	(1)
Problem 21-9. Seller's Alternative to Market and Resale Damages	303	(3)
Problem 21-10. Seller's Right to Stop Delivery	306	(1)
Problem 21-11. Seller's Right to Keep or Reclaim the Goods	307	(1)
Problem 21-12. Comparing Buyer's and Seller's Remedies	308	(1)
Applying the Code	309	(2)
Problem 21-13	309	(2)
Assignment 22: Modification or Limitation of Remedies	311	(18)
§§ 2-302, 2-719
Reading the Code	312	(8)
Problem 22-1 Remedy Limitations in General	312	(1)
Problem 22-2. Making Limited Remedies Exclusive	312	(1)
Problem 22-3. Minimum Adequate Remedy	312	(2)
Remedy Provisions of the Magnuson-Moss Warranty Act	314	(2)
Problem 22-4. Magnuson-Moss Provisions	316	(1)
Problem 22-5. Failure of Essential Purpose	316	(3)
Problem 22-6. The Relationship between 2-718 and 2-719	319	(1)
Applying the Code	320	(1)
Problem 22-7	320	(1)
Problem 22-8	320	(1)
Evans Industries, Inc. v. International Business Machines Co	321	(8)
Assignment 23: Statute of Limitations	329	(23)
§ 2-725
Reading the Code	329	(2)
Problem 23-1. Triggering the Statute of Limitations	329	(1)
Problem 23-2. Accrual of the Cause of Action	329	(1)
Problem 23-3. Application to Mixed Transactions	330	(1)
Problem 23-4. Extension of the Limitations Period	331	(1)
Applying the Code	331	(8)
Problem 23-5. Suit Against a Remote Seller	331	(1)
Problem 23-6. Suit for Indemnification	332	(1)
Problem 23-7. Warranting Future Performance	333	(1)
Problem 23-8. Statute of Limitations and Remedial Promises	334	(1)
Note on the Tolling of the Statute of Limitations	334	(1)
Problem 23-9. The 2003 Amended Version	335	(4)
Kathleen Patterson v. Her Majesty Industries, Inc.	339	(5)
City of Wood River v. Geer-Melkus Construction Co.	344	(8)
Assignment 24: Overlapping Tort and Contract Claims and Development of the Economic Loss Doctrine	352	(16)
Problem 24-1. Origins of the Economic Loss Doctrine	352	(1)
Variations of the Economic Loss Doctrine	353	(4)
Problem 24-2	357	(1)
East River Steamship Corp. v. Transamerica Delaval, Inc	358	(10)
Index	368