Common Law Paper

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Common Law Article Paper


Common Law and UCC Article 2

Case Scenarios Grocery, Inc. (Jason)

The UCC provides delineation regarding when the title passes between the seller and the buyer, and allocates risk of loss based on categorizing in agreements as a shipment contracts or FOB, which stands for "free/fright on board." Shipment contracts also called FOB require the seller to use a carrier (such as a delivery company) to deliver the goods. As a general rule, the contracts for goods are considered shipment contracts unless the parties have agreed otherwise. In this case, the seller pays for the transportation of the good plus the loading costs and needs to deliver the goods to the “hands” of the carrier to achieve complete performance.

Once the seller has accomplished this, title is deemed to have passed to the buyer. Normally, the risk of loss is allocated to the seller until the seller has delivered the goods to the carrier. If the goods are destroyed after that point, the loss is ordinarily borne by the buyer. For example, Jason shipped a truckload peaches from his farm to Grocery Inc. using an independent trucker. The truck broke down and the shipment was delayed for three days. The peaches were spoiled when they arrived to Grocery Inc. In this case because Jason and Grocery Inc. were under the terms of a FOB, Jason the seller is responsible for the cost of the peaches, loading cost, and possibly the cost of damages to Grocery, Inc.

Case Scenarios: Grocery, Inc. (Jeff)

It was the duty of Steve, the car...