Learning Objective (LO 15-1) What kinds of contracts fall under UCC interpretations?
- Candi Cane contracted with Mr. Mann to remodel her kitchen. The contract
called for Mr. Mann to reposition a stove, refrigerator, and shelving; then paint
the walls and cabinets. Mr. Mann furnished both goods and services but was
referred to in the contract as a building contractor, and most of the price
($1500.00) for the work was for labor. When the work was completed, Candi was very
unhappy with the outcome of the remodeled kitchen and refused to pay Mr. Mann.
a. Was this contract primarily for the sale of goods or for services rendered?
b. As a contractor, can Mr. Mann sue Candi claiming she failed to pay for a sale of
goods under Article 2 of the UCC? Why or why not?
c. How can Mr. Mann recover the money that Candi owes him?
Learning Objective (LO 16-5) What are the implied warranties of title, merchantability, and particular purpose?
- Rick O. Shay of Thrifty Motors wrote a bill of sale for a used and repaired truck
(cost $15,000) to Penny Pincher. Paragraph 2 of the bill of sale stated “I, Rick O.
Shay (seller) believes that this 2010 (F-150) Ford pick-up truck is now operative
and is safe for normal use, and is not in violation of NC State emission (pollution)
standards, as I understand them.”
a. Does the language in Paragraph 2 create a warranty? Why or why not.
b. Under UCC rules, what 2 types of warranties is Penny Pincher automatically
given whether or not they are written in a contract?
Learning Objective (LO 15-7) What is risk of loss?
- Marilyn Thomas purchased a spa pool heater from Sunkissed. The contract read that the heater was to delivered and installed in Marilyn’s home for a price of $1000.00. The pool heater was delivered to Marilyn’s residence, but the delivery slip was not signed because no one was at home at the time of the delivery. The pool heater was left in Marilyn’s driveway. She called Sunkissed 2 times to advise the company to move the 300 pound heater indoors. She was afraid the heater might be damaged or stolen. The heater remained in her driveway for four days. When Marilyn noticed that the heater had been removed she again called Sunkissed, but she was told “not to worry.” When Sunkissed showed up to install the heater, they realized that the heater had been stolen.
a. Who was responsible for the loss of the heater? Fully explain your answer.