solution

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.

ISSUE: what is shipment obligation? What is destination obligation? What if facts are unclear?

Who bears RISK OF LOSS?

ISSUE: if buyer receives goods that have patent defect(s), what must buyer do? Apply law to

facts and draw conclusion. What is “waiver” ? Apply law to facts and draw conclusion .

ISSUE : IF buyer discovers latent defect, what must buyer do?

What is doctrine of CURE? IF SELLER evidence an intention to cure, what must buyer do?

Who is in breach? Apply law to facts and draw conclusion.