My Doan Final Essay

2325 Words May 28th, 2015 10 Pages
My Doan – Final Essay

Part 1: Agreement

Issue 1: Determine the type of agreement between Denny and Manny
Rule:
UCC Article 2 governs transactions that involve a sale of goods, things that are movable at the time of sale. (Sale of goods, slide #3)
A sales contract is made in any manner that shows agreement including conduct. (Sale of goods, slide #5)
Analysis: On January 3, Denny contacted Manny to see if he (Denny) could order two motorcycles the first of every month for the next six (6) months; beginning in February (Each motorcycle is worth $10,000 wholesale). On January 4, Manny faxed Denny, on Manny’s business letterhead, indicating that Manny would first be able to send Denny motorcycles on March 1, FOB: Fast Delivery Service
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Issue 6: Who was at risk for the motorcycle, which was destroyed while being shipped?
Rule:
Common Carrier: if the contract permits seller to ship the goods via a common carrier and nothing is said in the contract about risk of loss, then tender occurs and risk of loss shifts to the buyer when the goods are delivered to the carrier. (Sale of Goods, slide #16)
Analysis: Manny stated in the fax that FOB is Fast delivery service, and there is no risk of loss indicating in the contract. Plus, the motorcycle was destroyed on the way FDS delivered to Denny after receiving from Manny. So, the risk of loss ought to shift to the buyer, Denny.
Conclusion: Denny was at risk for the motorcycle, which was destroyed while being shipped.

Issue 7: Are there any warranties involved in regards to the motorcycle with the broken transmission?
Rule:
Implied Warranty of Merchantability: goods sold by a merchant who deals in good of that kind are warranted to be fit for their ordinary purpose. Goods must be sufficient to satisfy the reasonable buyer. (Sale of Goods, slide #13)
Analysis: On June 1, Denny sold one motorcycle 2, but the customer returned the motorcycle on the day after stating that the transmission was broken (manufacturing defect) when the customer first tried to ride the motorcycle. Manny will be liable for replacing or repairing it.
Conclusion: Manny has to be
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