Problem.Dispute.Laptop computer
A. Carlos had just been accepted to law school. The law
school requires all entering students to own a laptop computer. His father
Ruben, not knowledgeable about computers, went to Computer Mart with the law school's
written specifications for laptop computers. He showed the specifications to a clerk in
the computer hardware department of the store who, without reading the specifications very
carefully, escorted Ruben to the store's selection of laptop computers and told Ruben:
"Any of these ought to do the trick." The clerk was then called to
the telephone and, before the clerk's return, Ruben had selected and purchased a laptop
computer from among those the clerk had identified as suitable. The computer that Ruben
selected was not equipped with a CD-ROM drive.
Ruben paid the $2,000 purchase price in full. When Ruben gave the
computer to his son just before law school started, Carlos thanked his father profusely
but told his father that the law school specifications required a CD-ROM drive because
many of the new casebooks came on C.D.'s. Ruben tried to return the laptop to
Computer Mart for a refund but Computer Mart refused because it was now selling laptops
with new super duper 5th generation enhanced triple X processors.
After notifying Computer Mart of his intentions, Ruben advertised
the laptop in the local paper at a price comparable to those being asked for similar
models. Having received no responses to the ad for two weeks, Ruben sold the laptop
for $1300 ($200 less than the advertised price) to a co-worker in Ruben's office. In the
meantime, Ruben purchased another laptop for his son which, although otherwise comparable
to the laptop he had purchased from Computer Mart, met the law school's requirements
because it included a CD-ROM drive. This second laptop cost $500 more than the laptop that
he had purchased from Computer Mart.
Ruben has sued Computer Mart in small claims court. Should he
prevail? Consult U.C.C. 2-313, 2-314, 2-315. When we
consider remedies for breach of contract, you may also wish to determine the amount of
money to which Ruben is entitled if he prevails (applying the default terms of U.C.C. 2-711 and other sections to which it refers).
B. Suppose that Carlos bought his own used laptop computer for $500 from a graduating law student who had advertised sale of the computer on the law school bulletin board. The computer met the law school's specifications but after one week of minimal use the CD-ROM drive stopped working. Carlos consults you for advice about whether he can return the computer and get his money back. In considering the following questions, consult U.C.C. 2-313, 2-314, 2-315, 2-316, 2-202, Bailey v. Tucker Equipment.
(1) To give that advice, what crucial question about the transaction with the seller will you ask him in the initial interview?
(2) What additional theory of liability would you consider if Carlos had bought the computer from the used computer department of Griddle's Electronic Superstore and there was no record of that transaction other than a cash register receipt showing date of purchase and purchase price?
(3) What if the laptop computer that Carlos purchased from Griddle's Electronic Superstore sat on a shelf that displayed the following notice: "All used laptop computers are sold as is." What if the notice read: "All used laptop computers are sold AS IS." Would your answer change if the transaction is governed by California law governing warranties in consumer goods transactions? See excerpts from the California Song-Beverly Consumer Warranty Act.
Suppose that Carlos tells you that the sales representative told Carlos that "the computers have all been tested, they are in good shape, and you can expect them to last quite a while." However, the notice on the shelf read: "All used laptop computers are sold AS IS and with no express warranties of any kind." May Carlos pursue a claim for breach of express warranty?