Solved > 6. On August 14, 1997, Burns Boiler Co.:2123549 …

6. On August 14, 1997, Burns Boiler Co. sold a boiler to Clarkson Manufacturing Co. Clarkson paid for the boiler in full, and Burns delivered to Clarkson a bill of sale. The bill of sale stated that Burns was transferring “all of its right, title, and interest” in the boiler to Clarkson. Clarkson had no immediate need for the boiler, so it remained in storage at Burns’ Florida factory. On January 18, 1998, Burns delivered the boiler to Clarkson in Michigan. The state of Florida then sued Clarkson, alleging that sales tax had been due to it when title passed to Clarkson, which the state claimed was on August 14. Clarkson responded that title did not actually pass until January 18. Who is correct, and why?

7. Sanford Ventilating Co. sold a fan unit, model 674, to Bishop Manufacturing Co. The contract of sale required delivery on December 10. On December 2, Sanford delivered a fan unit, model 694, to Bishop. Bishop immediately notified Sanford that the wrong fan unit had been delivered. Bishop informed Sanford that it was holding Sanford in breach of contract, and that it would pursue all remedies available to it under law. Sanford did not respond to this communication. On December 9, Bishop filed suit against Sanford for breach of contract. On December 10, Sanford delivered a fan unit, model 674, to Bishop. Bishop refused delivery, and Sanford sued for breach of contract. Who wins, and why?

8. Masters Corp. contracted to buy from Harrison Ceramic Co. 3 tons of ceramic rods to be shipped FOB Harrison’s factory by S&B Railroad Co. Harrison delivered 2 tons of ceramic rods to the railroad. While in transit, the train derailed and the rods were destroyed. Between Masters and Harrison, who bears the risk of loss, and why?

 

 

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