Question

1. Candi Cane contracted with Mr. Mann to remodel her Kitchen. The contracts called for Mr. Mann to reposition a stove, refrigerator, and shelving; then paint the walls and cabinets. Mr. Mann furnished both good and services but was referred to in the contract as a building contractor, and most of the price ($1500.00) for the work was for labor. When the work was completed, Candi was very unhappy with the outcome of the remodeled kitchen and refused to pay Mr. Mann.

A) Was this contract primarily for the sale of goods or for services rendered?  

B) As a contractor, can Mr. Mann sue Candi claiming she failed to pay for a sale of goods under Article 2 of the UCC? Why or why not?

C) How can Mr. Mann recover the money that Candi owes him?

2. Rick O. Shay of Thrifty Motors wrote a bill of sale for a used and repaired truck (cost $15,000) to Penny Pincher. Paragraph 2 of the bill of sale stated: "I, Rick O. Shay (seller) believes that this 2010 (F-150) Ford pick-up truck is now operative and is safe for normal use, and is not in violation of NC State emission (pollution) standards, as I understand them."

A. Does the language in Paragraph 2 create a warranty? Why or why not.

B. Under UCC rules, what 2 types of warranties is Penny Pincher automatically given whether or not they are written in a contract.

Answer 1

1a) the contract primarily involves contract for services rendered. Because contract for services involves a contract for work, labor & services done for which consideration is paid in return for exercise of manual skill or energy. But in contract for sale of goods, the concern is not towards skill but for finished product.

b) no. here the contractor can’t claim the amount under sale of goods act. Because as stated above he has only rendered services like painting, shelving etc. & there is no question of any physical product that has been delivered to candi on hand.

c) Mann can move to the court of law & sue candi for failure to make the payment in return for services rendered. Candi can’t withhold payment for work done. Payments can be withheld only if there are any damages or delay in time frame. Hence Mann has every right to recover payments through any contract that has been entered by both of them.

2a) the statement can be a warranty because warranty is nothing but a promise made by one party to another & the promise here is that it is safe to use.

b) Types of warranties:

• Safe to use.
• In compliance with state emission pollution standards.