5-2 Law questions

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· Chapter 8:  Formation of Sales and Lease Contracts, Uniform Commercial Code, Contracts for Sale of International Goods (CISG)

· Chapter 9: Title, Risk and Insurable Interest

· Chapter 10: Performance, Breach of Sales Contracts and Remedies

· Chapter 11:  Sections 11.1-11.7 (Warranties and Product Liability)

Question 1 - Statute of Frauds

Plaintiff shipped to Defendant—Pizza Pride Inc. of Jamestown, North Carolina—an order of mozzarella cheese totaling $11,000. That same day, Plaintiff mailed Defendant an invoice for the order, based on Plaintiff’s understanding that an oral contract existed between the parties whereby Defendant had agreed to pay for the cheese. Defendant was engaged in the real estate business at this time and had earlier been approached by Pizza Pride Inc. to discuss that company’s real estate investment potential. Defendant denied ever guaranteeing payment for the cheese and raised the UCC’s Statute of Frauds, Section 2-201, as an affirmative defense. The Plaintiff contended that because Defendant was in the business of buying and selling real estate, she possessed knowledge or skill peculiar to the practices involved in the transaction here. After hearing the evidence, the court concluded as a matter of law that Defendant did agree to pay for the cheese and was liable to Plaintiff in the amount of $11,000. Defendant appealed. How should the appeals court rule?

Question 2 - Risk of Loss

Plaintiff, a manufacturer of men’s clothing in Los Angeles, contracted to sell a variety of clothing items to Defendant, Harrison’s clothing store in Westport, Connecticut, “F.O.B. Los Angeles.” Plaintiff delivered the goods to Trucking Company and received a bill of lading. When the goods arrived at Defendant’s store about two weeks later, Mrs. Harrison, Defendant’s wife, who was in charge of the store at the time, requested the truck driver to deliver the goods inside the door of the shop. The driver refused and ultimately drove away. The goods were lost. Defendant refused to pay for the goods and raised as a defense that “the Plaintiff refused to deliver the merchandise into the Defendant’s place of business.” Who wins and why?

Question 3 - UCC Additional Terms

Best Products, Inc., offers to sell to Infinite Sales Company one hundred DVD players at $50 a piece, subject to certain specific delivery dates. Infinite replies with a signed purchase order that reads, “Accept your offer for 100 I-appliances at $50 each.  Must be delivered to our warehouse.” Best does not respond or deliver the goods. Infinite files a suit for breach of contract, to which Best answers that there is no contract because Infinite’s purchase order contained additional terms and is not signed by Best. Can Infinite recover? Explain.