Question

A is an online store that carries both new and antique jewelry. B primarily focuses on the repair of antique watches, although he sometimes sells watches through direct email advertisements to regular customers, such as A. One day, B sent A an email advertisement that inadvertently included a very rare antique watch that C had left with B for repair. A called B on the telephone and said that he would take the watch at the advertised price of $500, and that he would pick it up the following day. B verbally agreed to those terms and sent a confirmation to A via email immediately upon concluding their discussion. Upon receiving B’s confirmation, A posted the watch on its website and, as things would have it, he shortly thereafter received an offer from C, who was excited about finding a watch that was identical to the one he already owned for $600 (C’s excitement was due in part to his belief that he could resell the “new” watch to his friend D at a substantial profit - D had long admired C’s watch). A responded to C’s offer by promising to ship the watch via UPS the following day (no mention was made by either A or C about who would be responsible for the cost of shipping). C then called D to see if he might be interested in buying the watch for $800, an offer to which D immediately agreed. D then transferred the $800 purchase price to C via electronic banking. A drove to B’s store and took possession of the watch the first thing the next morning, and then left it with UPS for delivery to C. Unfortunately, the watch was destroyed in transit (and only one block from C’s home) when the UPS truck caught on fire as a result of an electrical problem in the engine compartment. Explain how UCC Art. 2 would apply to these facts from the perspectives of A, B, C and D in terms of: 1. The legal relationships between A and B, A and C, B and C, and C and D; 2. The identification of goods to a contract, the passage of title, and the passage of the risk of loss; 3. The effect of the watch’s destruction on the parties; and 4. The application of the statute of frauds.

Answer 1

(A)the relation between all of them are buyer and sellere,because here is selling and then reselling then reselling process is being carried out.since all of them are buyer and seller both.

(B) passage of title is styill remains in the hand of c,because he have no knowledge about his product that is being resold one after another

(C)effect of watch destruction is that all are focusing on only that watch that is not there,it came them in time loss

(D) b has done fraud with c,because he has sent watch for repair not for resell