Part 4- Sales, Chapter 21: Performance of Sales Contracts, Doc 6

Case Analyses and Legal Implications for Performance of Sales Contracts 9. Fekkos v. Lykins Sales & Service Issue: Fekkos rejected a defective tractor, which was later stolen while awaiting pickup by Lykins. Lykins sued to recover the purchase price. Legal Analysis:    Under UCC [2-602], a buyer rejecting nonconforming goods must hold them with reasonable care for a time sufficient for the seller to retrieve them. Risk of Loss: Once goods are rejected, the seller retains the risk of loss unless the buyer acts negligently. Fekkos placed the tractor in his yard due to reasonable constraints (driveway under repair) and informed Lykins multiple times to collect it. Conclusion: Since Fekkos acted reasonably and the theft occurred before Lykins picked up the tractor, the court would likely find that Fekkos is not liable for the purchase price. 10. Creusot-Loire v. Coppus Engineering Corp. Issue: Creusot-Loire requested extended assurances for defective burners purchased for an ammonia plant. Coppus refused, and Creusot-Loire sued for a refund. Legal Analysis:     Right to Assurance: Under UCC [2-609], a party may demand adequate assurance of performance if they have reasonable grounds for insecurity. Assurance must be proportionate to the perceived risk. Coppus's Warranty: The warranty covered defects for a set time but operational failures in similar plants raised legitimate concerns. Reasonableness of Assurance Request: Creusot-Loire’s demand for an irrevocable letter of credit and warranty extension could be viewed as excessive, exceeding typical assurance requirements. Conclusion: The court would likely rule that Creusot-Loire had the right to demand reasonable assurance, but its specific demands may have been excessive. The outcome would depend on whether Coppus’s refusal constituted a failure to provide adequate assurance. Additional Insights: Leveraging eBay's Feedback System Using eBay to Check Seller Reputation:   Feedback System: eBay provides detailed feedback for sellers, including: 1. Item Description Accuracy. 2. Shipping and Packaging. 3. Timeliness of Shipping. 4. Overall Buyer Satisfaction. Steps to Verify Seller: 1. View Seller Profile: Check the feedback score and percentage of positive ratings. 2. Read Comments: Review specific feedback to identify patterns of complaints or praise. 3. Detailed Seller Ratings (DSRs): Examine star ratings for item description accuracy, communication, shipping time, and shipping cost. By following these steps, buyers can assess a seller’s trustworthiness and likelihood of providing a smooth transaction.