Commercial Transactions : Sales, Leases, and Licenses

by Speidel, Richard E.; Rusch, Linda J.

Edition: 2nd

ISBN13: 9780314154781

ISBN10: 0314154787

Format: Hardcover

Pub. Date: 2004-12-30

Publisher(s): West Group

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Summary

This casebook focuses on the contract for sale of goods under UCC Article 2. Includes discussions of legislative history and changes made in the latest drafts of Revised Article 2. The United Nations Convention on Contracts for the International Sale of Goods (CISG) is analyzed and compared. Also identifies the intersections between Article 2 and Revised Article 9. Discusses and compares the relevant sections of UCC Article 2A, and the Uniform Computer Information Transactions Act (UCITA). Finally, the relevant provisions of the Uniform Electronic Transactions Act (UETA) and the federal "E-Sign" legislation are treated as related to electronic commerce issues.

Preface

Acknowledgments

vii

Table of Cases

xxvii

Table of Statutes and Regulations

xxxvii

Table of Secondary Authorities

xlvii

Part One: Nature and Scope of Commercial Codes

(94)

The Nature and Sources of Commercial Law

(42)

Section 1. Introduction to Commercial Law

(5)

Types of Commercial Transactions

(1)

Functions of Commercial Law

(4)

Role of the Commercial Lawyer

(1)

Section 2. The Uniform Commercial Code: History, Structure, and Purpose

(14)

A Brief History of the Uniform Commercial Code

(3)

What Does the UCC Cover?

(5)

What Transactions Does This Book Cover?

(1)

Interpreting the UCC: Some Notes on Methodology

(5)

Section 3. Commercial Law Not in the Uniform Commercial Code

(2)

Section 4. International Commercial Law

(2)

Section 5. An Exercise in UCC Methodology

(19)

B & W Glass, Inc. v. Weather Shield Mfg., Inc.

(10)

Blue Valley Cooperative v. National Farmers Organization

(5)

Problem 1-1

(1)

Problem 1-2

(2)

Scope: What Law Applies to the Transaction

(52)

Section 1. A Roadmap to the Sales and Leases Articles of the UCC

(14)

The Agreement Stage

(2)

The Post-Agreement--Pre-Shipment Stage

(2)

The Stage of Getting the Goods or Documents Therefor to the Buyer or Lessee

(2)

The Receipt-Inspection Stage

(4)

The Payment Stage

(2)

Finance Leases

(1)

Special Problems of Third Party Rights in a Lease Transaction

(1)

Conclusion

(1)

Section 2. Determining What Law Applies

(19)

Analysis of the Scope of Article 2 and Article 2A

(1)

Article 2: Sales

(3)

Article 2A: Leases

(1)

Problem 2-1

(4)

Mixed Transactions

(1)

Coakley & Williams, Inc. v. Shatterproof Glass Corp

(7)

Problem 2-2

(1)

United Nations Convention on Contracts for the International Sale of Goods (CISG)

(1)

Problem 2-3

(1)

Choice of Law and Choice of Forum Clauses

(2)

Section 3. Some Basic Concepts in Article 2

(19)

Introduction

(2)

Agreement, Not Promise, as the Foundation Stone

(1)

The Article Two ``Merchant'' Concept

(1)

Problem 2-4

(2)

Legal Controls on Contractual Behavior: Unconscionability and Good Faith

(1)

Zapatha v. Dairy Mart, Inc.

(11)

Problem 2-5

(2)

Part Two: Formation and Terms of the Contract

(210)

Contract Formation and Enforcement

(52)

Section 1. Introduction; Electronic Contracting

(3)

Section 2. Contract Formation: The Basics

(10)

Flanagan v. Consolidated Nutrition, L.C.

(6)

Problem 3-1

105

(1)

Problem 3-2

105

(1)

Problem 3-3

105

(1)

Problem 3-4

106

(1)

Problem 3-5

107

(1)

Problem 3-6

108

(1)

Note: UCITA and Contract Formation Principles

108

(1)

Section 3. Contract Formation: Battle of the Forms

108

(20)

Under Former UCC 2-207

108

(2)

Daitom, Inc. v. Pennwalt Corp

110

(11)

Note: Arbitration and the Battle of the Forms

121

(2)

Problem 3-7

123

(1)

The Reform (?) of UCC 2-207

124

(1)

Problem 3-8

124

(1)

Note: Battle of the Forms Under the UNIDROIT Principles

125

(1)

Note: UCITA and Standard Form Contracting

126

(1)

The ``Gateway'' Problem

127

(1)

Problem 3-9

128

(1)

Section 4. The Statute of Frauds

128

(19)

History and Purposes

128

(2)

Satisfying the Statute of Frauds

130

(1)

Casazza v. Kiser

130

(8)

General Trading International, Inc. v. Wal-mart Stores, Inc.

138

(6)

Problem 3-10

144

(1)

Problem 3-11

145

(1)

Problem 3-12

145

(1)

Problem 3-13

145

(2)

Terms of the Agreement: Sources and Meaning

147

(56)

Section 1. ``Gap Fillers'' as Terms of the Contract

147

(6)

The Scope of Agreement in Fact: A Reprise

147

(1)

``Gap Fillers'' as Terms of the Contract

148

(1)

``Gap Fillers'' Supplied by the UCC

148

(2)

The Content of ``Gap Fillers''

150

(1)

Problem 4-1

151

(1)

Problem 4-2

152

(1)

Note: UCITA and Default Rules

153

(1)

Note: The CISG and Default Rules

153

(1)

Section 2. Open Terms

153

(26)

Quantity

154

(1)

Orange & Rockland, Etc. v. Amerada Hess Corp.

155

(8)

Problem 4-3

163

(2)

Note: Best Efforts in Exclusive Dealing Relationships

165

(1)

Price

166

(2)

Mathis v. Exxon Corporation

168

(9)

Problem 4-4

177

(1)

Problem 4-5

177

(1)

Problem 4-6

178

(1)

Delivery Terms and Payment of the Price

179

(1)

Section 3. Pre-contract Facts Which Vary, Supplement, or Give Meaning to the Agreement

179

(24)

Introduction

179

(2)

Effect of Usage of Trade and Course of Dealing

181

(1)

Columbia Nitrogen Corp. v. Royster Co.

181

(8)

The Parol Evidence Rule

189

(1)

Alaska Northern Development, Inc. v. Alyeska Pipeline Service Co.

189

(10)

Problem 4-7

199

(1)

Note: Contract Interpretation Under the UCC

199

(2)

Note: Effect of ``Usage'' and ``Practice'' Under the CISG

201

(2)

Breach of Warranty as to the Quality of the Product Sold

203

(102)

Section 1. Introduction

203

(6)

Warranty Theory: Some History

203

(4)

Warranties Under the Code: An Introduction

207

(2)

Warranties under the CISG and UCITA

209

(1)

Section 2. Express Warranties

209

(32)

Sessa v. Riegle

212

(4)

Keith v. Buchanan

216

(6)

Problem 5-1

222

(1)

Note: The ``Basis of the Bargain'' Test

223

(3)

Rogath v. Siebenmann

226

(7)

Downie v. Abex Corp

233

(6)

Note: Express Warranties and Privity

239

(1)

Problem 5-2

239

(1)

Note: Express Warranties Under the CISG

240

(1)

Problem 5-3

241

(1)

Note: Express Warranties Under UCITA

241

(1)

Section 3. Implied Warranties

241

(51)

Introduction

241

(1)

Problem 5-4

242

(1)

Merchantability

242

(1)

Agoos Kid Co., Inc. v. Blumenthal Import Corp

243

(2)

Valley Iron & Steel Co. v. Thorin

245

(5)

Delano Growers' Cooperative Winery v. Supreme Wine Co., Inc.

250

(7)

Note: Merchantability and Used Goods

257

(1)

Problem 5-5

258

(1)

Overlap Between Merchantability and Strict Tort Liability

258

(1)

Castro v. QVC Network, Inc.

258

(8)

Fitness for Particular Purpose

266

(1)

Lewis v. Mobil Oil Corp.

266

(7)

Note: Implied Warranties Under the CISG

273

(1)

Note: Implied Warranties Under UCITA

273

(1)

Finance Leases

274

(1)

Problem 5-6

274

(1)

Mercedes-Benz Credit Corp. v. Lotito

275

(7)

Note: Finance Licenses Under UCITA

282

(1)

Proof of Breach: Effect of Lack of Causation and Plaintiff's Contributory Behavior

283

(1)

Chatfield v. Sherwin-Williams Co.

284

(8)

Section 4. Disclaimers and Limitations of Warranties

292

(9)

Martin v. Joseph Harris Co., Inc.

292

(7)

Problem 5-7

299

(1)

Problem 5-8

300

(1)

Note: Disclaimers of Warranty Under the CISG

300

(1)

Note: Disclaimers of Warranty Under UCITA

301

(1)

Section 5. Extension of Warranty Obligations

301

(4)

Problem 5-9

302

(1)

Problem 5-10

303

(2)

Part Three: Performance of the Contract

305

(190)

Delivery and Payment

305

(58)

Section 1. Tender, Inspection, and Payment

305

(15)

The Basic Scenario

305

(1)

Problem 6-1

306

(2)

Problem 6-2

308

(1)

The Seller's Shipment of Goods to the Buyer

308

(4)

Problem 6-3

312

(1)

Problem 6-4

312

(1)

Goods in the Hands of a Bailee and Delivery Without Moving the Goods

313

(1)

Problem 6-5

314

(1)

The Documentary Draft Transaction

314

(1)

The Letter of Credit Transaction

315

(2)

Note: Delivery, Inspection, and Payment Under Article 2A

317

(1)

Note: Delivery, Inspection, and Payment Under the CISG

317

(2)

Note: Delivery, Inspection, and Payment Under UCITA

319

(1)

Section 2. Rejection, Acceptance, and Revocation of Acceptance

320

(39)

Rejection or Acceptance

320

(1)

The Rightfulness of the Rejection

320

(2)

Problem 6-6

322

(2)

Midwest Mobile Diagnostic Imaging v. Dynamics Corp. of America

324

(8)

Problem 6-7

332

(1)

Procedural Requirements of Effective Rejection

333

(1)

Problem 6-8

334

(1)

What Constitutes Acceptance of the Goods

334

(1)

Plateq Corp. of North Haven v. Machlett Laboratories, Inc.

335

(8)

Problem 6-9

343

(1)

Duties Regarding Rejected Goods

344

(1)

Borges v. Magic Valley Foods, Inc.

344

(4)

Revocation of Acceptance

348

(3)

Problem 6-10

351

(1)

The Right to Cure

352

(4)

Problem 6-11

356

(1)

Note: ``Fundamental Breach'' and ``Avoidance'' of the Contract in International Sales

356

(2)

Note: Rejection, Acceptance, Revocation of Acceptance, and Cure Under UCITA

358

(1)

Section 3. Termination

359

(1)

Section 4. Putting it All Together

359

(4)

Problem 6-12

360

(1)

Problem 6-13

361

(2)

Excuse from or Adjustment of the Contract for Changed Circumstances

363

(58)

Section 1. Relief from Changed Circumstances

363

(32)

Loss of Identified Goods

364

(1)

Problem 7-1

364

(1)

Failure of Delivery or Payment Mechanisms

364

(1)

Problem 7-2

364

(1)

The Basic Assumption Test: Force Majeure Events

365

(1)

Wickliffe Farms, Inc. v. Owensboro Grain Co.

365

(5)

Specialty Tires of America, Inc. v. The CIT Group/Equipment Financing, Inc.

370

(10)

Relief From Non-Force Majeure Events

380

(1)

Increased Costs of Performance

380

(2)

Buyer's Excuse

382

(1)

Effect of Agreement on Excuse

383

(1)

International Minerals & Chemical Corp. v. Llano, Inc.

383

(10)

Problem 7-3

393

(2)

Section 2. Modification of the Contract

395

(26)

Agreed Modifications

395

(1)

Agreed Modifications in Good Faith

395

(1)

Problem 7-4

395

(1)

Roth Steel Products v. Sharon Steel Corp

396

(6)

Agreed Modifications and the Statute of Frauds

402

(1)

Modification or Rescission by Waiver

403

(1)

BMC Industries, Inc. v. Barth Industries, Inc.

404

(7)

Cloud Corporation v. Hasbro, Inc.

411

(8)

Problem 7-5

419

(2)

Risk of Loss and Insurance

421

(26)

Section 1. Ground Rules

421

(2)

Section 2. Risk of Loss in the Absence of Breach

423

(16)

Goods in Possession of Seller

423

(1)

Problem 8-1

423

(1)

Problem 8-2

424

(1)

Problem 8-3

424

(1)

Problem 8-4

424

(1)

Goods in the Possession of a Bailee to be Delivered Without Being Moved

425

(1)

Silver v. Wycombe, Meyer & Co., Inc.

425

(3)

Problem 8-5

428

(1)

Seller Authorized or Required to Ship Goods by Carrier

428

(1)

Windows, Inc. v. Jordan Panel Systems Corp.

429

(6)

Problem 8-6

435

(1)

Note: Risk of Loss and Insurance

435

(2)

Note: Liability of Overland Carrier for Goods Lost or Damaged in Shipment

437

(2)

Section 3. Effect of Breach on Risk of Loss

439

(8)

Problem 8-7

440

(1)

Note: Risk of Loss Under the CISG

441

(1)

BP Oil International, Ltd. v. Empresa Estatal Petroleos De Ecuador (Petroecuador)

442

(4)

Note: Risk of Loss Under UCITA

446

(1)

Property Rights

447

(48)

Section 1. Title and Identification

447

(3)

Problem 9-1

448

(1)

Note: Title and Identification Under the CISG

449

(1)

Note: Title and Identification Under UCITA

450

(1)

Section 2. Seller or Lessor in Possession of the Goods

450

(12)

Introduction

450

(1)

Buyer's or Lessee's Rights to Obtain the Goods From the Seller or Lessor

451

(1)

Pre-paying Buyer or Lessee

451

(1)

Problem 9-2

451

(1)

Specific Performance and Replevin

452

(2)

Problem 9-3

454

(1)

Note: Rights of a Buyer to Obtain the Goods Under the CISG

454

(1)

Note: Rights of a Licensee to Obtain the Product Under UCITA

455

(1)

The Buyer's or Lessee's Right to Obtain Possession As Against Third Persons with Claims to the Goods

455

(1)

Lien Creditors

455

(1)

Problem 9-4

455

(1)

Secured Creditors

456

(1)

Problem 9-5

457

(1)

Buyers or Lessees from the Seller or Lessor

458

(1)

Problem 9-6

458

(1)

Seller's or Lessor's Ability to Stop or Withhold Delivery of the Goods From the Buyer or Lessee

459

(1)

Problem 9-7

460

(1)

Security Interests Arising Under Article 2: Seller's Right to Retain Title or Ship Under Reservation

460

(1)

Note: Retaining Control of the Product Under UCITA

460

(1)

Claims to the Goods Asserted by the Buyer's or Lessee's Creditors or Transferees When the Seller or Lessor in Possession of the Goods

461

(1)

Problem 9-8

462

(1)

Section 3. Buyer or Lessee in Possession of the Goods

462

(20)

Introduction

462

(1)

Seller's or Lessor's Right to Regain Possession of the Goods From Buyer or Lessee

463

(1)

Seller's Security Interest in Goods

463

(1)

Seller's Right to Reclaim When no Security Interest in Goods

463

(1)

Consignments

464

(2)

Lessor's Right to Possession of Goods from Lessee

466

(1)

Note: Licensor Reclamation Under UCITA

466

(1)

Priority of Seller's or Lessor's Right to Possession Against Buyer's or Lessee's Creditors or Transferees

467

(1)

Seller's Security Interest or a Consignor's Interest in Goods

467

(1)

Problem 9-9

467

(1)

Seller's Right to Reclaim

468

(1)

Problem 9-10

469

(1)

Lessor's Right to Reclaim Against the Lessee's Creditors or Transferees

470

(1)

Priority of Buyer's or Lessee's Claim to the Goods Against Persons Claiming Pre-existing Ownership

471

(1)

Buyer Against Persons Claiming Pre-existing Ownership of the Goods

471

(1)

Inmi-Etti v. Aluisi

471

(5)

Note: Certificates of Title and the BFP of Motor Vehicles

476

(1)

Problem 9-11

477

(1)

Problem 9-12

477

(1)

Problem 9-13

478

(1)

Problem 9-14

478

(1)

Problem 9-15

478

(1)

Lessee Against Person Asserting Previously Created Right in the Goods Obtained from the Lessor

479

(1)

Note: Ownership Claims Under UCITA and the CISG

480

(1)

Buyer's and Lessee's Rights as Against Seller's or Lessor's Creditors

480

(2)

Problem 9-16

482

(1)

Note: Licensee's Rights as Against Licensor's Creditors Under UCITA

482

(1)

Section 4. Warranty of Title, Non-interference, and Against Infringement

482

(8)

Sumner v. Fel-Air, Inc.

483

(5)

Note: Fifty Ways to Breach the UCC 2-312 Warranty of Title

488

(1)

Problem 9-17

489

(1)

Note: Title and Infringement Claims Under the CISG

490

(1)

Note: Title and Infringement Claims Under UCITA

490

(1)

Section 5. Assignment and Delegation

490

(5)

Problem 9-18

493

(2)

Part Four: Breach of Contract and Remedies

495

(186)

Remedies: Breach When Product Not Accepted

495

(86)

Section 1. Introduction

495

(2)

Section 2. Insecurity and Repudiation

497

(29)

Insecurity and Prospective Inability

497

(2)

Top of Iowa Cooperative v. Sime Farms, Inc.

499

(10)

Problem 10-1

509

(1)

Problem 10-2

510

(1)

Repudiation

511

(3)

Problem 10-3

514

(1)

Problem 10-4

514

(1)

Note: Insecurity and, Anticipatory Repudiation under the CISG

515

(1)

Note: Insecurity and Repudiation under UCITA

516

(1)

Right to Cancel

516

(1)

Grounds for and Effect of Cancellation

516

(1)

Cancellation Under Installment Contracts

517

(2)

Plotnick v. Pennsylvania Smelting & Refining Co.

519

(6)

Note: Avoidance for Breach of Installment Contract Under the CISG

525

(1)

Note: Cancellation Under UCITA

526

(1)

Section 3. Remedies of Seller and Lessor

526

(38)

Availability and Cumulative Effect

526

(1)

Action for the Price, Rent, or Specific Performance

527

(1)

Problem 10-5

528

(2)

Problem 10-6

530

(1)

Note: Action for the Price Under the CISG

531

(1)

Note: Action for the Price Under UCITA

531

(1)

Resale, Release, or Substitute Transactions

532

(1)

Problem 10-7

532

(1)

Afram Export Corp. v. Metallurgiki Halyps, S.A.

533

(5)

Note: Disposition by Lease of Goods under Article 2A

538

(1)

Note: Substitute Transactions Under the CISG

539

(1)

Note: Substitute Transactions Under UCITA

540

(1)

Contract-Market Damages

540

(1)

Problem 10-8

541

(1)

Note: Market Price Damages Under the CISG

542

(1)

Note: Market Price Damages Under UCITA

543

(1)

Lost Profit

543

(1)

R.E. Davis Chemical Corp. v. Diasonics, Inc.

544

(10)

Problem 10-9

554

(1)

Note: Lost Profits Under the CISG

555

(1)

Note: Lost Profits Under UCITA

555

(1)

Remedial Choice

555

(1)

Trans World Metals, Inc. v. Southwire Co.

556

(6)

Problem 10-10

562

(1)

Incidental and Consequential Damages

563

(1)

Note: Consequential Damages Under the CISG

564

(1)

Note: Consequential Damages Under UCITA

564

(1)

Section 4. Remedies of Buyer or Lessee

564

(17)

Introduction

566

(1)

Cover

566

(1)

Problem 10-11

567

(1)

Problem 10-12

567

(1)

Fertico Belgium S.A. v. Phosphate Chemicals

568

(4)

Note: Other Sources of Cover

572

(1)

Note: Cover Under the CISG

573

(1)

Note: Cover Under UCITA

574

(1)

Market-Contract Damages

574

(1)

Problem 10-13

574

(1)

Problem 10-14

575

(1)

Note: Market Price Damages Under the CISG

576

(1)

Note: Market Price Damages Under UCITA

577

(1)

Consequential and Incidental Damages

577

(1)

Problem 10-15

578

(1)

Note: Consequential Damages Under the CISG

578

(1)

Note: Consequential Damages Under UCITA

579

(1)

Note: Punitive Damages for Breach by Repudiation or Non-delivery

579

(2)

Non-conforming Performance and Accepted Products: Damages for Breach

581

(48)

Section 1. Reprise of Rejection, Acceptance and Revocation of Acceptance

581

(1)

Section 2. Accepting a Non-conforming Performance; Notice

582

(9)

Aqualon Company v. Mac Equipment, Inc.

582

(7)

Problem 11-1

589

(1)

Problem 11-2

590

(1)

Note: Notice of Breach Under the CISG

591

(1)

Note: Notice of Breach Under UCITA

591

(1)

Section 3. Damages for Accepted Performance

591

(21)

Direct Damages

591

(1)

Problem 11-3

592

(1)

Problem 11-4

593

(1)

Problem 11-5

593

(1)

Note: Damages for Breach When Goods Accepted Under the CISG

594

(1)

Note: Damages for Breach When Product Accepted Under UCITA

595

(1)

Incidental and Consequential Damages

595

(1)

Hydraform Products Corp. v. American Steel & Aluminum Corp.

596

(6)

Nezperce Storage Co. v. Zenner

602

(5)

Delano Grower's Co-op. Winery v. Supreme Wine Co.

607

(2)

Problem 11-6

609

(1)

Problem 11-7

609

(1)

Problem 11-8

610

(2)

Note: Consequential and Incidental Damages Under the CISG

612

(1)

Note: Consequential and Incidental Damages Under UCITA

612

(1)

Section 4. Products Liability Law

612

(17)

Injury to Person and Property

612

(3)

Problem 11-9

615

(2)

The ``Economic Loss'' Doctrine

617

(2)

Note: Leases and Licenses

619

(1)

Note: The CISG

619

(1)

Note: Status of Consumers

620

(1)

Fieldstone Co. v. Briggs Plumbing Products, Inc.

621

(8)

Limitations on Remedies for Breach of Contract

629

(52)

Section 1. Agreed Limitations on Remedies

629

(23)

Liquidated Damages

629

(1)

Metlife Capital Financial Corp. v. Washington Avenue Associates L.P.

629

(3)

In re Baldwin Rental Centers, Inc.

632

(6)

Problem 12-1

638

(1)

Note: Liquidated Damages Under the CISG

639

(1)

Note: Liquidated Damages Under UCITA

639

(1)

Limited Remedies

639

(1)

Problem 12-2

640

(1)

Cayuga Harvester, Inc. v. Allis-Chalmers Corp

640

(9)

Note: Effect When Agreed Remedy Fails of its Essential Purpose

649

(2)

Note: Contracting Out of Tort Liability

651

(1)

Section 2. Consumer Protection Law

652

(18)

Federal Law: FTC and the Magnuson-Moss Warranty Act

654

(1)

Ventura v. Ford Motor Corp

655

(10)

Problem 12-3

665

(1)

State Law: ``Lemon'' Laws

666

(1)

Joan Vogel, Squeezing Consumers: Lemon Laws, Consumer Warranties, and a Proposal for Reform

667

(3)

Note: Informal Dispute Resolution

670

(1)

Section 3. The Statute of Limitations

670

(11)

Problem 12-4

671

(1)

Standard Alliance Indus., Inc. v. Black Clawson Co.

672

(7)

Problem 12-5

679

(2)

Index

681

Kids

Men

Unisex

Women

For You

For Your Car

For Your Home

For Your Pet

For Your Tech

Holiday

Home Decor

Mascot

Office Decor

Spirit

Stationary

Diploma Frames

Graduation Gear

Graduation Gifts

For Your Office

Clothing

Commercial Transactions : Sales, Leases, and Licenses

Rent Textbook

New Textbook

Used Textbook

eTextbook

Summary

Table of Contents

Commercial Transactions : Sales, Leases, and Licenses

Rent Textbook

New Textbook

Used Textbook

eTextbook

Summary

Table of Contents

Digital License