QUESTIONS
Mae contracted to sell one thousand bushels of wheat to Lloyd at $5 per bushel. Just before Mae was to deliver the wheat, Lloyd notified her that he would not receive or accept the wheat. Mae sold the wheat for $4.60 per bushel, the market price, and later sued Lloyd for the difference of $400. Lloyd claims he was not notified by Mae of the resale and, hence, is not liable. Is Lloyd correct? Why or why not?
On December 15, Judy wrote a letter to David stating that she would sell to David all of the mine-run coal that David might wish to buy during the next calendar year for use at David’s factory, delivered at the factory at a price of $30 per ton.
David immediately replied by letter to Judy, stating that he accepted the offer, that he would purchase all of his mine-run coal from Judy, and that he would need two hundred tons of coal during the first week in January.
During the months of January, February, and March, Judy delivered to David a total of seven hundred tons of coal, for all of which David made payment to Judy at the rate of $30 per ton.
On April 10, David ordered two hundred tons of mine-run coal from Judy, who replied to David on April 11 that she could not supply David with any more coal except at a price of $38 per ton delivered.
David thereafter purchased else where at the market price, namely $38 per ton, all of his factory’s requirements of mine-run coal for the remainder of the year, amounting to a total of two thousand
tons of coal. Can David now recover damages from Judy at the rate of $8 per ton for the coal thus purchased, amounting to $16,000? Why or why not?
On January 10, Betty, of Emanon, Missouri, visited the showrooms of the Forte Piano Company in St. Louis and selected a piano. A sales memorandum of the transaction signed by Betty and by the salesperson of the Forte Piano Company read as follows: “Sold to Betty one new Andover piano, factory number 46832, price $3,300, to be shipped to the buyer at Emanon, Missouri,
freight prepaid, before February 1.
Prior to shipment, seller will stain the case a darker color in accordance with buyer’s directions and will make the tone more brilliant.” On January 15, Betty repudiated the contract by letter to the Forte Piano Company.
The company subsequently stained the case, made the tone more brilliant, and offered to ship the piano to Betty on January 26. Betty persisted in her refusal to accept the piano.
The Forte Piano Company sued Betty to recover the contract price. To what remedy, if any, is Forte entitled?
Sims contracted in writing to sell Blake one hundred electric motors at a price of $100 each, freight prepaid to Blake’s warehouse.
By the contract of sale, Sims expressly warranted that each motor would develop
twenty-five-brake horsepower. The contract provided that the motors would be delivered in lots of twenty-five per week beginning January 2 and that Blake should pay for each lot of twenty-five motors as delivered but that Blake was to have right of inspection upon delivery.
Immediately upon delivery of the first lot of twenty five motors on January 2, Blake forwarded Sims a check for $2,500, but upon testing each of the twenty-five motors, Blake determined that none would develop more than fifteen-brake horsepower. State all of the remedies under
the Uniform Commercial Code available to Blake.
Henry and Mary entered into a written contract whereby Henry agreed to sell and Mary agreed to buy a certain automobile for $8,500. Henry drove the car to Mary’s residence and properly parked it on the street in front of her house, where he tendered it to Mary and requested payment of the price.
Mary refused to take the car or pay the price. Henry informed Mary that he would hold her to the contract, but before Henry had time to enter the car and drive it away, a fire truck, answering a fire alarm and traveling at a high speed, crashed into the car and demolished it. Henry brings an
action against Mary to recover the price of the car.
Who is entitled to judgment? Would the result differ if Henry were a dealer in automobiles? Explain.
James sells and delivers to Gerald on June 1 certain goods and receives from Gerald at the time of delivery Gerald’s check in the amount of $9,000 for the goods.
The following day, Gerald is petitioned into bankruptcy, and the check is dishonored by Gerald’s bank. On June James serves notice upon Gerald and the trustee in bankruptcy that he reclaims the goods. The trustee is in possession of the goods and refuses to deliver them to James. What are the rights of the parties?
The ABC Company, located in Chicago, contracted to sell a carload of television sets to Dodd in St. Louis, Missouri, on sixty days’ credit. ABC Company shipped the carload to Dodd. Upon arrival of the car at St. Louis, Dodd paid the freight charges and reshipped the car to Hines of Little Rock, Arkansas, to whom he had previously contracted to sell the television sets.
While the car was in transit to Little Rock, Dodd went bankrupt. ABC Company was informed of this at once and immediately telephoned XYZ Railroad Company to withhold delivery of the television sets. What should the XYZ Railroad Company do?
Robert in Chicago entered into a contract to sell certain machines to Terry in New York. The machines were to be manufactured by Robert and shipped F.O.B. Chicago not later than March
On March 24, when Robert is about to ship the machines, he receives a letter from Terry wrongfully repudiating the contract. The machines cannot readily be resold for a reasonable price because they are a special kind used only in Terry’s manufacturing processes. Robert sues Terry to recover the agreed price of the machines. What are the rights of the parties?
Calvin purchased a log home construction kit manufactured by Boone Homes, Inc., from an authorized Boone dealer. The sales contract stated that Boone would repair or replace defective materials and that this was the exclusive remedy available against Boone. The dealer assembled the house, which was defective in several respects.
The knotholes in the logs caused the walls and ceiling to leak. A support beam was too small and therefore cracked, causing the floor to crack also. These defects could not be completely cured by repair. Should Calvin prevail in a lawsuit against Boone for breach of warranty to recover damages for the loss in value? Explain.
Margaret contracted to buy a particular model Rolls-Royce from Paragon Motors, Inc. Only one hundred of these models are built each year. She paid a $30,000 deposit on the car, but Paragon sold the car to Gluck. What remedy, if any, does Margaret have against Parago