Case Studies of Warranty Liabilities

Case Study 1
Erica contracted to purchase a giant 72” television from Hometown Electronics with the delivery included in the purchase. Thus, Erica had a contract for goods and services where the sale of the good predominates and is covered under UCC Article 2 (Business Law II, Week II, Nature and Form of Sales, 2014) (U.C.C. - ARTICLE 2 - SALES (2002)). If Erica had participated in a cash sale that was concurrent that did not require delivery she would have taken possession of the goods at the time of sale (Twomey & Jennings, , 2011, pp. 381, 539). This concurrent condition did not occur as Erica and Hometown Electronics had a verbal agreement for the delivery of the television to her home. Per UCC Article 2 there is a supports this subsequent condition by the fact that Hometown electronics acted upon this condition as additional terms of acceptance in attempting to deliver the television (Twomey & Jennings, , 2011, pp. 380, 471) (U.C.C. - ARTICLE 2 - SALES (2002)).
Delivery terms were FOB destination because of the subsequent condition that Hometown Electronics acted upon at the time of the agreement concerning delivery. The third party to the contract, delivery truck, got in an accident when attempting to deliver the television. Therefore, the title to the goods, and the responsibility for them, transfers to the third party (Twomey & Jennings, , 2011, p. 497). Hometown Electronics is required to find a substitute television because the risk of loss did not pass to Erica until it arrived at her home (Twomey & Jennings, , 2011, p. 505).

Once delivery has occurred, it is Hometown Electronics responsibility demand Erica’s timely inspection of the television to ensure that there is no damage and that it operates accordi...

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...v. McDonald's Restaurants that is regarded as a frivolous law suit (Liebeck v. McDonald's Restaurants).

Works Cited

Business Law II, Week II, Nature and Form of Sales. (2014). Retrieved March 31, 2014, from South Unversity Online: myeclassonline.com
Liebeck v. McDonald's Restaurants. (n.d.). Retrieved March 31, 2014, from Doc Stoc: http://www.docstoc.com/docs/113680900/Liebeck-v-McDonalds-Restaurants
Twomey & Jennings, . (2011). Anderson's Business Law and the Legal Environment, Comprehensive Volume (22 ed.). South-Western College Publications.
U.C.C. - ARTICLE 2 - SALES (2002). (n.d.). Retrieved March 31, 2014, from Cornell University Law School: http://www.law.cornell.edu/ucc/2/article2
Zakary Kessel v. Stansfield Vending, Inc. (2006, March 16). Retrieved March 31, 2014, from Justia US Law: http://law.justia.com/cases/wisconsin/court-of-appeals/2006/24501.html