Smith and Roberson’s Business Law
Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 9, Problem 8CP
Summary Introduction

To discuss: Whether the contract is governed by the UCC.

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Helvey brought suit against the Wabash County REMC (REMC) for breach of implied and express warranties. He alleged that REMC furnished electricity in excess of 135 volts to Helvey’s home, damaging his 110-volt household appliances. This incident occurred more than four years before Helvey brought this suit. In defense, REMC pleads that the Uniform Commercial Code’s (UCC’s) Article 2 statute of limitations of four years has passed, thereby barring Helvey’s suit. Helvey argues that providing electrical energy is not a transaction in goods under the UCC but rather a furnishing of services that would make applicable the general contract six-year statute of limitations. Is the contract governed by the UCC? Why or why not?
Brian Cleary and Rita Burke filed a suit against cigarette maker Philip Morris USA, Inc., seeking class-action status for a claim of deceptive advertising. Cleary and Burke claimed that “light” cigarettes, such as Marlboro Lights, were advertised as safer than regular cigarettes, even though the health effects are the same. They contended that the tobacco companies concealed the true nature of light cigarettes. Philip Morris correctly claimed that it was authorized by the government to advertise cigarettes, including light cigarettes. Assuming that is true, should the plaintiffs still be able to bring a deceptive advertising claim against the tobacco company? Why or why not?
As part of its business, Kinko’s Graphics Corporation (Kinko’s) copied excerpts from books, compiled them in “packets,” and sold the packets to college students. Kinko’s did this without permission from the owners of the copyrights to the books and without paying copyright fees or royalties. Kinko’s has more than two hundred stores nationwide and reported $15 million in assets and $3 million in profits for 1989. Basic Books, Harper & Row, John Wiley & Sons, and others (plaintiffs) sued Kinko’s for violation of the Copyright Act of 1976. Plaintiffs owned copyrights to the works copied and sold by Kinko’s and derived substantial income from royalties. They argued that Kinko’s had infringed on their copyrights by copying excerpts from their books and selling the copies to college students for profit. Kinko’s admitted that it had copied excerpts without permission and had sold them in packets to students, but it contended that its actions constituted a fair use of the works in…
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