What is a shipment delivery obligation? what is a destination obligation? what if the facts are unclear/ who bears risks of loss when goods in process of delivery suffer causality and/or total loss? in this case who bears risk of loss? if the seller delivers nonconforming goods, what options does the buyer have? what is the doctine of cure? when doe sit operate? does buyer have a duty to speak? What if the buyer does now: what is the legal effect? Did the seller offer to cure; if so what options if any does the buyer have?
Mary's Stationery Store ordered via fax, 10 wood cabinets from Oscar's Office Furniture
Co. at a cost of$ 1,000 per unit, with delivery within thirty ( 30 ) days at her place of
business. She insisted in the fax that Oscar "take good care in handling the furniture so that it
arrives safely, without any dents or scratches". Oscar advised that the goods would be shipped
through PUG Transport Co. While the truck was en route with the cabinets, it crashed and all
goods were lost. Oscar demanded Mary pay; Mary refused and insisted on a new delivery.
Mary also ordered via fax, 500 red, white and blue ball point pens from Parker Pen Co.
at a cost of $ 3 per pen and with delivery within 30 days. On the 25th day, ABC Delivery Co.
delivered the pens and on inspection, Mary noticed she received 250 black pens and 250 silver
pens. She also noticed that more than 50% of the pens had long scratches on their outer casings
but all the pens wrote fine. She advised the truck driver that "if I didn't need the pens so badly
for my customers, I would reject the entire shipment." Six weeks later, customers who purchased
the pens complained that the pens did not write properly after limited use. When Mary had the
ink cartridges tested, she learned the cartridges were defective. She contacted Parker Pen Co.
and advised of the defective cartridges, the improper color assortment and the long scratches and
demanded a new shipment. "Parker" refused but offered to replace all cartridges for free. Mary
rejected the offer and advised she would not honor Parker's invoice and in so far as she was
concerned, "Parker" was in breach and absent a new shipment she was revoking her acceptance.
Mary and "Parker" consult you about their rights.
Discuss. What is a shipment delivery obligation? what is a destination obligation? what if the facts are unclear/ who bears risks of loss when goods in process of delivery suffer causality and/or total loss? in this case who bears risk of loss? if the seller delivers nonconforming goods, what options does the buyer have? what is the doctine of cure? when doe sit operate? does buyer have a duty to speak? What if the buyer does now: what is the legal effect? Did the seller offer to cure; if so what options if any does the buyer have?
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