Buyer's Remedies Worksheet
Prof. Bill Long 3/31/05
Although one or two of these problems also touch on seller's remedies, the problems are primarily geared to the sections we have studied from 2-711 through 2-719.
1. B purchases a gold ring from S, a merchant. She pays $3,200 for the ring, advertised as an "18-carat gold ring." A few months later she shows it to a friend who says that what she bought was in fact a gold-plated ring which is worth $800. The market price of the genuine ring is $3,500, but B, when she purchased, thought she was getting a good deal. B sues S for damages. What would be the result under the Code? What would her damages be if the market price in most stores of an "18-carat gold ring" was $2,800 and she still paid $3,200 for the gold-plated ring?
2. B purchases a boat from S for $35,000 on April 1. The boat, however, is not ready for delivery, but B really wants it by May 1, the start of the boating season. So, she executes a contract with S which provides that there will be a "penalty" of $100 per day assessed against S for delivery later than May 1. Delivery actually happens on June 15. B subtracts $4,500 from the purchase price and tenders $30,500 to S. If S sues B for the $4,500, will a court uphold the contract?
3a. B contracts in writing to buy a unique oil painting from S for a large sum. When he sends his people to pick it up, S gets cold feet and claims he really wants to keep the painting and tells B his option is to "cover" under the Code. B is hardened in his resolve and insists on getting the painting. Who has the better argument under the Code? Why?
b. B runs a noodle business and purchases a shipment of noodles from S. S ships them and stores them in a local warehouse near B. Prices of noodles have gone up since the contract between B and S and when B comes to pick them up, S refuses to deliver them, feeling that she can get a better price from other purchasers. Does B have a remedy?
4. B purchases an ivory refrigerator from S for $1,000 + $50 delivery charge. When it is delivered, however, it is in a box labeled "ivory," but in fact the refrigerator is orange. B rejects the tender. S says she can't get another one right away. So, B shops around that weekend, and in the third store she visits she finds an identical ivory model for $1,200, no delivery charge. She buys it. a. What remedies, if any, does B now have against S?
b. S is infuriated when B informs her that he has found a refrigerator, and shows B an advertisement that there was a sale on this very refrigerator at XX department store over the weekend for $1,000. How does this reality affect your analysis?
c. Assume that B goes out to shop but couldn't find an identical model to the one he wanted, and buys one that has a very attractive external water and ice dispensing feature, even though she didn't particularly want the feature. It cost $1,300. B wants S to bear the $300 price differential. S cries "foul" and refuses to deal with B. What result if litigated?
5. B inherits $1 million from a relative and decides to buy a successful patio furniture business, with a good reputation. He purchases a large supply of rubber (for chairs/lounges, etc.) from S. However, when the chairs are made, they all snap when people over 200 pounds sit in them. B has to recall the chairs and stop producing them for the season. In frustration B sells the business, but because of the problem, he is only able to get $500,000 for the business. It didn't help that his chair's problem was parodied on late night TV right before the sale. B wants to sue S for all he can. What are his potential remedies under Article 2?
6. B contracts to buy a car from S for $3,000 and tenders a down-payment of $800. Before delivery B calls and tells S that he cannot go through with the contract. S is very understanding, but refuses to return B's $800. In the meantime S is able to sell the car for $3,100. B wants all of his money back, claiming that S would be unjustly enriched if he doesn't get every penny in return. S says that a deal is a deal and she ought not to return anything to B. What does the Code say?
7. B, a tomato sauce manufacturer, contrats to buy a large amount of oregano from S for $15 per pound, delivery May 1. No delivery happens. The market price has skyrocked to $20 per pound in B's city by May 1, and B suspects that S didn't deliver because she can get a higher price now. Yet, B roots around and finds replacement oregano for $16 per pound. She decides to sue S under 2-713 because S has not delivered. What is the likely result?
8. B purchases a pizza oven from S for $10,000. Soon after installation, the oven develops a problem--it won't heat the pizzas. S doesn't have repair people available, so B finds someone who discovers a faulty temperature control system, which he repairs with some difficulty. He says to B, "Well, your oven works now, but this is merely a patch-up job. Eventually you will need a better repair." The repair cost $1,200. B sues S for the repair. What is B's likely recovery?
9. Let us assume, picking up on the previous problem, that the pizza oven was out of service for four days, Thursday - Sunday. The parlor is normally closed on Sundays, but B has made special arrangements to host a party on that date for which he was planning to charge the users $1,000. In addition, since the party wouldn't take up all the space in the pizza parlor, B was planning to open specially that Sunday. Normally, and B can document this, he takes in $2,000 in revenues per day. If B sues S and asks for damages of $9,000, what is he likely to recover?
Copyright © 2004-2007 William R. Long