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.