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BCOR 2003 Business Law Ethics And Social Responsibility

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Questions

Scenario 1

Under the Uniform Commercial Code, if a buyer receives goods that are “Nonconforming” the buyer has a “reasonable time” to reject those goods, otherwise the buyer is treated as having accepted the goods even though they are nonconforming.  The two general ways that goods are non-conforming are if the seller delivers (1) defective goods or (2) incorrect goods (goods different from those ordered).  Thus, if the buyer fails to reject within a reasonable time, the buyer his lost its right to return the goods and must pay for them despite their being non-conforming.

Here are some cases where a court determined whether or not a buyer had rejected nonconforming goods within a reasonable time:

  1. Grocery store had notrejected within a reasonable time when it rejected a truckload of bananas 3 days after they had arrived.  The buyer had noticed, upon arrival, that the bananas were overly brown.
  1. Ski shop had rejected within a reasonable time when it rejected a shipment of 200 snowboards 15 days after arrival after noticing (5 days after arrival) that the top surface of all of the snowboards contained discoloration).
  1. Grocery store had rejected within a reasonable time when it rejected a shipment of 144 boxes of energy bars 7 days after arrival because it noticed the day that they arrived that all of them were the incorrect flavors.

Case  Discussion

1. In 4 to 5 sentences explain in general how a court would use the precedent cases above in future disputes over the interpretation of a “reasonable time” to reject goods.

For each of the scenarios, the question for the court is whether or not the rejection of the non-conforming goods was made within a reasonable time.  Explain how you think that the case might turn out and how the precedent would support that outcome.  If you think that either outcome is possible, explain how a court would use precedent to support each of those outcomes.  In most cases you should be able to give good, complete responses with no more than 4 or 5 sentences to each scenario.  Assume that the judges will follow precedent (won’t make a decision that contradicts the decided cases).  Take all the facts as correct.  For the precedent cases, you know only what is stated above.  You do not know exactly which aspect(s) of the facts was most important to the judge in deciding if the rejection was done within a reasonable time or not.

2. A ski shop noticed the day of delivery that the 120 pairs of boots ordered were the wrong models.  It rejected the boots 8 days after delivery.

3. A grocery store noticed the day of delivery that the 100 roses received were red (they were supposed to be white) and rejected them 4 days after delivery.

4. A shop in Sun Valley Idaho, which was in the path of totality for the August 21 Solar eclipse ordered 200 T shirts that were delivered on July 31.  Two days later, on August 2, the store realized that the word “Solar” on the shirts was incorrectly spelled as “Soler.”  The shop rejected them on August 8, 8 days after arrival.

5. A roofing contractor had ordered asphalt roofing shingles for a residential customer’s roofing project.  The contractor received the shingles on June 1, noticed that they were the wrong color on June 2, and rejected them just over a month later on July 3.

Scenario 2.

Mark lives in Memphis, Tennessee.  Memphis is located very close to both Mississippi and Arkansas.  For questions 6-10, answer in a few sentences at most.

6. Mark was visiting the town of Little Rock, Arkansas and was involved in a 2 car accident.  The other driver lives in Little Rock.  If Mark were to sue the other driver, which state or states would have personal jurisdiction over the other driver and why?

7. Mark was visiting the town of Little Rock, Arkansas and was involved in a 2 car accident.  The other driver lives in Little Rock.  If the other driver were to sue Mark, which state or states would have personal jurisdiction over Mark and why?

8. Mark was visiting the town of Little Rock, Arkansas and was involved in a 2 car accident.  The other driver lives in Atlanta Georgia.  If Mark were to sue the other driver, which state or states would have personal jurisdiction over the other driver and why?

9. Mark was visiting the town of Little Rock, Arkansas and was involved in a 2 car accident.  The other driver lives in Little Rock.  Which state or states could exercise personal jurisdiction over Mark in a criminal case?

10. Assume that Mark starts a mobile dog grooming business and purchases a van for this purpose.  How will it be determined if a state can exercise jurisdiction over the dog grooming business if that business is named as a defendant in a civil lawsuit related to the business.

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