Beruflich Dokumente
Kultur Dokumente
Contents
2-105: Goods: All things moveable; tangible personable property..............1
Hybrid Transaction - BMC Industries v. Barth Industries.........................................1
Computer Software or idea: placed on tangible mediumGood............................2
Offer & Acceptance: requires intent to form K. Very low threshold...............2
2-204: Formation................................................................................................... 2
2-207: battle of the forms...................................................................................... 2
Threshold for forming K under A2.......................................................................2
2-206. O and ACC in Formation of K......................................................................3
2-201. Formal Requirements. SOF.........................................................................3
2-204 Southwest Engineering v. Martin Tractor:....................................................4
1-201(A)37 signature can be any symbol to mark the ACC of writing.....................4
2-204 allows for formation of K even if all terms are not agreed...........................4
2-201(2) Decatur Cooperative Assoc.....................................................................4
2-207 (ADD Terms) Belden..................................................................................... 5
K modifications........................................................................................................ 6
Waiver..................................................................................................................... 6
2-202. AGRs/Ks and Parol EVD Rule.......................................................................7
1-303. COP, COD, AND UOT................................................................................... 8
Statutory Terms....................................................................................................... 9
Price........................................................................................................................ 9
Quantity................................................................................................................ 10
Risk of Loss............................................................................................................ 11
2-509. RoL in the Absence of BR..........................................................................12
2-510. Effect of BR on RoL...................................................................................12
Warranties.............................................................................................................. 14
Disclaimer of WR................................................................................................... 17
Privity: Kual relationship between parties..............................................................18
IKs......................................................................................................................... 19
Sellers remedies when Buyer Breaches...........................................................20
Buyers remedies when Seller
Breaches.2
2
2-105: Goods: All things moveable; tangible personable property
1. GF: 1-201 (20): Honesty and observance of fair dealing
2. MC: 2-104: Someone who has skill and knowledge in the area in transaction; or deals
with goods of the kind in the transaction; Dealer who frequently sells inventory
3. Scope A2: 2-102: Does not specifically apply to MCs
4. Does A2 apply to hybrid (both goods/services)
1. TC: UCC not govern service K (FL CL: no waiver unless DR)
2. Predominant Character Test
a. Language of K (refer to purchase, B, S, equipment)
b. Manner transaction billed (K not include cost for servicesgoods)
c. K for movable goods (more likely a sale of goods)
d. Court: predominantly a sale of goods or sale of a service?
3. Held: Goods for the following predominant Factors: a) K titled PO; b) Parties refer to
Pg. 1
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5.
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7.
1. Jannusch v. Noffziger: food truck route, truck & equipment for $15k; Dispute
Pg. 2
1. 2-201(1) Except as otherwise provided in this section a K for Sale of goods for the $$
of $500 or more is not enforceable by way of action or defense unless there is some
writing sufficient to indicate that a K for sale has been made between the parties and
signed by the party against whom enforcement is sought or by his authorized agent or
Pg. 3
2.
3.
4.
5.
6.
broker. A writing is not insufficient bc it omits or incorrectly states a term agreed upon
but the K is not enforceable under this paragraph beyond the QT of goods shown in such
writing.
2-201(2) Between MCs if within a rbl time a writing in confirmation of the K and
sufficient against Sender is received and the party receiving it has reason to know its
contents, it satisfies the requirements of subsection (1) against such party unless written
notice of objection to its contents is given within 10 days after it is received.
2-201(3) A K which does not satisfy the requirements of subsection (1) but which is
valid in other respects is enforceable
(a) if goods are to be specially manufactured for B and are not suitable for sale
to others in the ordinary course of Ss business and S, before notice of
repudiation is received and under circumstances which reasonably indicate that
goods are for the B, has made either a substantial beginning of their
manufacture or commitments for their procurement; or
(b) if the party against whom enforcement is sought admits in his pleading,
testimony or otherwise in court that a K for sale was made, but the K is not
enforceable under this provision beyond the QT of goods admitted; or
(c) with respect to goods for which payment has been made and accepted or
which have been received and accepted (Sec. 2-606). Partial perf in general K
law. Here, only the part that is performed is under SOF.
2-204 Southwest Engineering v. Martin Tractor:
a. P was bidding on runway lighting project and asked D for quote for a standby
generator; D provided quote - $18,500. P selected as low bidder (Ds quote)
b. D provided a memo to P detailing cost to provide generator w/ 10% discount and
accessories at cost: cost $21,500
c. D reneged on deal and told P to buy the generator elsewhere. P found a
generator, from a supplier that D recommended, for $27,541. P sued for $6,041
in DGs from BR
d. Issue. Do SW and Martin have a K
e. P: memo prepared by D had essential elements of K; D: future negotiations
f. 1-201(A)37 signature can be any symbol to mark the ACC of writing
g. 2-204 allows for formation of K even if all terms are not agreed upon
P.4, pg 55: signature, but no intent; no K formed-blank form not an intent
a. Two Arguments: 1) if enforceable, no K formation; 2) Not enforceable (SOF)
2-201(2) Decatur Cooperative Assoc v. Urban
a. Decatur called Urban; gave oral AGR for sale of grain; Decatur puts AGR in
writing; Urban does not sign; Decatur sells Urbans wheat to another broker; $$
of wheat goes up; Urban refuses to sell stating no K formed; Decatur sues for BR
b. TC found for Urban stating farmers are not MCs
c. Issue: Farmer MC? Urban equitably estopped to assert SOF as a defense?
d. 2-201(2): SOF applies unless S specifically objects to EVD of K within 10 days
e. MC Status
i. Dealer who deals in goods of the kind involved
ii. One who by occupation holds himself out as having particular knowledge
to the practices or goods involved in the transaction
iii. A principal who employs an agent that holds himself out as having
knowledge to the practices/goods in the transaction
f. Court: Urban was a wheat farmer he was not in the business of selling wheat
g. SOF: Urban states since hes not a MC there must be a signed AGR (general Ks
SOF): therefore no K. Decatur contends since Urban knew that he would
immediately sell the wheat that he is estopped from using SOF: promissory
Pg. 4
10.
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14.
15.
16.
17.
Held: for AEC stating Beldon failed to prove CoD established a limitation on
Beldens liability for consequential DGs
P.2, pg 72. No. 2-207(1): ACC is made conditional upon assent to ADD terms then
there is no K . Then court will look to see if there was assent in the response
P.4, pg 72. Can still be an ACC: the materially differing terms will fall out
Northrup Corp v. Litronic Industries
a. Northup asked Litronic for quote for electronic boards
b. If accepted then Northrup will send PO stating that their terms control
c. Litronic sent O stating 90-day WR is in lieu of any other WR proposed by B
d. 3-4 months later Northrup sent the PO, with an unlimited WR, requiring Ss
written acknowledgement; Litronic never sent acknowledgement
e. Tested 5-6 mo after delivery; returned for defects; Litronic refused-90-day WR
f. Issue: When K formed? 2-207(3): parties proceeded-K by conduct! WR in K?
g. CoP indicates K between parties. Which WR terms control?
i. ACC contains materially different terms than the O, which prevails?
ii. Fall out Rule - Oees discrepant terms drop out & Oors terms part of K
h. Oor is master of O, so any terms different from his fall out. If Oee wants ADD
terms then make your ACC conditional upon ACC of ADD terms
i. KO Rule: New terms knock each other out; use UCC to supply terms of K
j. Illinois goes by minority view, which is item 1. Oor is the master of O
k. TC found gap filler was a rbl time for a WR and 6 months was rbl
l. 2-602(1) provides for a rbl time for WR
m. H: for Northrup. Gap filler since terms of O and ACC materially differ. Rbl time.
P.2, pg 79. Is limitation of DGs a material alteration? Part of K? Depends on rule:
a. FO: Term would fall out and the Bs O would stand (includes limitation)
b. KO: Both terms fall out; go to UCC, which does not limit DGs
c. If one party was not a MC then the O is the K
P.3, pg 79. Is there an expression of ACC 2-207(1)? If yes, then are differing terms
material change per 2-207(2)? If yes, then use Knock-out/Fallout:
a. KO: both terms knock-out; no configuration of shirts;
b. Look to 2-311(2); assortment of goods are at Ss option
c. FO: go with Oors term (assortment)
P.4, pg. 79
a. 2-207(1) not apply bc payment made X conditional upon assent to terms
b. 2-207(3): K by conduct. Terms? KO/FO not apply to 2-207(3)
Conflicting terms replaced by gap fillers; UCC states POD
Hill and Klocek: K between MC and non-MC
a. Hill: Gateway Os computer; Hill = Oee; can accept by keeping (Oee assents)
b. Klocek: K = Oor; G is Oee; not bt MCs so terms FO; UCC silent re arbitration
P.4, pg 89. Under Hill, WR if B is MC; Under Klocek, no WR. 3rd way to look at it: K
was formed when S accepted money (when parties expressed intent to form K); anything
else after that cannot be added to K (most courts have not accepted this)
K mod
Waiver
1. 2-209 Wisconsin Knife v. National Metal. mods in writing
a. K states that delivery was due 10/1981; Bits delivered 01/1983 (half)
b. P sues based on failure to deliver on delivery date
c. P: late delivery not mod [2-209(2)]; mod must be in writing
d. D: 2-209(4) waiver allows mod without writing
e. Waiver (no reliance) different from est (requires reliance to detriment)
f. CT: waiver requires reliance. NMW relied on continued late production
Pg. 6
D: K had an integration clause, so parties may seek all DGs in law & equity
A2: if K fully integ, party may seek other provisions
Integration clause not dispositive of showing that it contains all AGRs
Terms of K cannot be contradicted by prior AGRs, etc, but may be
explained by the iTerms including consistent ADD terms
i. If the cover DGs contradict clause for recovery under any means
ii. Could be included under CoD
8. Noble v. Logan-Dees Chevrolet
a. Facts: wrecked, 2100, insurance check for wrecked El Camino; K does not
mention the insurance check, so B (Noble) does not think he has to pay
b. Issue: Is parol EVD allowed to show whether B agreed to give insurance check ?
c. Parol EVD may be entered to clarify an ambiguity
d. CA Rule: Term may not be ambiguous on its face; may be a latent ambiguity
e. If you say it is ambiguous I will let in EVD to show that it is ambiguous
f. NY Rule: Meaning of ambiguous term is defined by other terms in K
g. Court determines ambiguity: when term susceptible > one interpretation
h. Term may not be ambiguous on its face, but Parol EVD may be introduced
i. HELD: not entitled to parol EVD; K was fully integrated; EVD would have
provided inconsistent/contradictory terms
9. Nanakuli Paving Company v. Shell
a. Nanakuli Paving has a K to buy asphalt from Shell for MP: only 2 asphalt
suppliers at the time; $$ was the MP at the time of delivery
b. Shell raises $$, N sues for BR of K; N alleges that Shell failed to $$ protect
c. N: $$ protection should be allowed as a UoT
d. S: not in the trade of asphalt paving
e. N: UoT extends to all who deal in the trade or deal in that trade
f. $$ protection was common trade usage in Hawaii
g. N: even if no $$ protection, still in K bc of CoP: Shell had $$ protected twice
h. S: not CoP, but waiver
i. GF: Q of fact for jury
j. S: xTerms take precedence over iTerms: 1-303(e); and 2-208(2)
k. N: iTerms are used to explain the xTerms. Explains that K will be MP after
period of $$ protection.
l. TA: When we have iTerms they may not be ostensibly consistent with the
xTerms, but may be used to explain the terms as long as they do not
contradict. iTerms can always explain xTerms, but cannot contradict
1-303. COP, COD, AND UOT
1. 1-303(a) A "CoP" is a sequence of conduct between the parties to a particular
transaction that exists if: (1) AGR of parties with respect to transaction involves
repeated occasions for perf by a party; and (2) other party, with knowledge of nature of
the perf & opportunity for objection to it, accepts perf or acquiesces in it w/o objection
2. 1-303(b) A "CoD" is a sequence of conduct concerning previous transactions between
the parties to a particular transaction that is fairly to be regarded as establishing a
common basis of understanding for interpreting their expressions and other conduct.
3. 1-303(c) A "UoT" is any practice or method of dealing having such regularity of
observance in a place, vocation, or trade as to justify an expectation that it will be
observed with respect to the transaction in Q. The existence and scope of such a usage
must be proved as facts. If it is established that such a usage is embodied in a trade code
or similar record, the interpretation of the record is a Q of law.
4. 1-303(d) A CoP or CoD between the parties or UoT in the vocation or trade in which
they are engaged or of which they are or should be aware is relevant in ascertaining the
Pg. 8
RoL
1. CL: RoL passes S to B at precise moment title transferred, unless K provides other
2. 2-504: shipment by S. If K not require deliver to particular destination, 2-504(a) states
that S has risk until goods are given to carrier.
3. 2-509: If K requires S to deliver to a particular destination, 2-509(b) RoL passes to B
Pg. 11
WRs
1. WR?
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b.
c.
d.
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Three iWRs
i. iWR of title. 2-312: once B takes possession S also gives title
ii. iWR of MCability. 2-314: S a MCin WR of sale goods are MCable
iii. iWR for particular purpose: 2-315
1. If S has reason to know B would use goods for particular purpose
2. B relying on Ss skill/judgment on selection of goods
3. B relied on statement/recommendation in selecting goods
4. S knew B relied on recommendation for particular purpose
b. P.1, pg 233. No, MC is not a telephone MC
c. P.2, pg 234. Yes, replacement goods is viewed as Sale of replacement goods
d. P.3, pg 234. S: Im not a MC with respect to spray paint machines; or, Sale of
used goods, therefore there may be an issue with its condition; or, would machine
working at 50% pass without objection; Look at sale $$
Ambassador Steel v. Ewald Steel
a. K for commercial QL steel; not in K: (iWR); P claims BR; No BR of WR for
particular purpose: S did not know of purpose to be used
b. Claims BR of MCability; Not MCable
Bethlehem Steel v. Chicago Eastern
a. Steel for wall sheets in grain storage tanks (i.e. silos)
b. B specified that they wanted ASTM 446 Grade C
c. S complied with specs, but the process used to produce Steel made Steel brittle
d. B states that WR of MCability was Bred
i. CT: that use in grain walls was not an ordinary use of this steel
ii. Steel would not be rejected in ordinary UoT
e. B then argues WRPP
f. S: not recommend anything and S did not rely on any recommendations
g. B gave specs: No Reliance!! No iWR for particular use!!
h. Ss steel met the ASTM 446 Grade C, but 25-50 times as much
i. Ordinary purpose is to make things stronger: new steel fit for ordinary purpose
j. 2-314 is conjunctive: all requirements must be met: Pass w/o objection; Fair
average QL within the description; Fit for the ordinary purpose; Permissible
requirements; Adequately contained, packaged; Conform to promise or
affirmations of fact made on the container or label if any
k. When B provides specs, he does not rely, so there is no WPSF
l. All requirements under 2-314 must be met for WOM
P.5, pg 244. Does A2 even apply? Hybrid goods/services. Restaurant is largely about
service. YES! Last sentence 2-314(1): food or drink, consumed on premises or
elsewhere, for value, is a SALE. Not MCable
P.6, pg 244. Book contains recipes; poisonous. MCable: if fell apart on opening, non-MC
P.8, pg 244. BR of MCability: even if S knew nothing of the condition of the car:
Pg. 16
Pg. 24