solution

dining at the Montauk Diner, Jack ordered a tuna sandwich and Jill ordered a fried

chicken sandwich. When Jill took a bite of her sandwich, she felt an instant burn about her

mouth and lips when a pocket of hot grease emerged. When Jack took several bites of his

sandwich, he suffered a broken tooth due to a piece of metal. When they complained, the

manager ofthe diner explained: ‘Tm sorry but it is NOT our fault … ” When they attended an art

auction and had the highest bid, the auctioneer refused to take their money and give them the art

work, explaining “it is with reserve!” Upon returning home, they discovered that Jack’s watch,

brought to Henry’s Watch & Jewelry Exchange for repairs had been sold to Ben; that their

apartment suffered a break in while away and they lost a laptop, Snoop Dog CD collection

and CD player. Later, they discovered that Fred had their laptop; Mary had their Snoop Dog CD

collection and Tim had their CD player and each insisted like Ben, they purchased as bona fide

purchasers for value from 3rd parties and had receipts to prove it. They consult you. Discuss.

ISSUE 1: What does UCC 2-314 say regarding sale of food and/or beverage? Apply law to

facts and draw conclusion. May Jack recover? Jill? Why?

ISSUE 2: What does UCC 2-328 say regarding auctions with reserve as compared to auctions

without reserve? Apply law to facts and draw conclusion

ISSUE 3 What is the Entrustment Doctrine? 2-403 What title does merchant get from owner

of property who entrusts personal property? What title can it pass? To whom? What is a bona

fide purchaser for value? Apply law to facts and draw conclusion.

ISSUE 4: What title does thief who breaks and enters get? What title can it pass? 2-403 Apply

law to facts and draw conclusion.