Chapters 21-22

Please answer the following questions based upon your assigned readings and class materials. Be sure to CITE YOUR SOURCES (including the text and slides). Please be advised that by relying on material outside the course may give information that is not as discussed or presented in class and will not provide additional credit.

Your answers must be in complete sentences and free of typographical errors.


Your writing assignment must be saved as either as WORD documents or in PDF, with double-spaced, 1” margins. The assignment must be well written and professional in appearance. Your completed assignment must be uploaded onto Blackboard for submission. NO OTHER FORMATS WILL BE ACCEPTED. THERE ARE NO EXCEPTIONS. If you submit a document in an alternate format that cannot be opened in Blackboard, you will receive a 0 on the assignment.


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The plaintiff is an importer of German beer, with its principal place of business in New York  The defendants, Home Beverage Depot (hereinafter “HBD”), operates as a beer distributor. The plaintiff alleges that the defendants orally agreed to purchase two shipping containers of German beer containing 1,500 cases of beer each, to be F.O.B. place of destination, the first shipment to arrive on or before June 30, 2012. The second shipment to arrive on or before July 31, 2012. Plaintiff alleges both containers were shipped on time and that the defendants only paid for one- half of the first shipment. The plaintiff commenced this action, to recover the balance of the unpaid shipment(s) and for damages for breach of contract. The defendants assert that they agreed to purchase one container of 1,200 cases of beer, which was to be shipped F.O.B. place of destination, and that they never agreed to purchase a second container of beer. At a trial, the plaintiff produced two invoices for $24,690 each, one dated June 6, 2012, and the other dated July 14, 2012, which the plaintiff’s owner testified were issued based upon the defendants’ verbal orders. The plaintiff also produced a check issued by the defendant, HBD, in the amount of $12,345, a sum equal to 50 percent of the first invoice. The defendants conceded that they paid only half of the first invoice. The defendants’ owner testified that he paid only half of the invoice amount because the agreement had been for 1,200 cases of beer and not 1,500, and because they had to pay to store the extra beer that was shipped.


As to the invoice dated July 14, 2012, the defendants’ owner testified that it did not represent


an agreement by the defendants to purchase the second container of beer. Defendants deny


receiving the invoice for the second container of beer before it was shipped to them

Short Answer/Essay Questions



  1. Please identify is the subject matter of the dispute in the above fact pattern?


  1. What law will a judge use to resolve the dispute? Please explain your answer by citing the law and the facts that support your conclusion.


  1. Put yourself in the position of the judge and determine whether or not there is an enforceable contract. Please be sure to define any applicable legal definitions and whether or not the facts apply to that definition. An accurate and comprehensive analysis will answer the following questions:


  1. Who are the parties (Hint: What is a merchant)?


  1. Is there an enforceable contract? (Hint: Was a writing required? What is the default rule? Are (is) there any (a) applicable exception(s)?)


  1. Assuming that there is a contract:
    1. At what point did the buyer have ownership of the beer?
    2. Could the buyer resell the beer to a third-party?
    3. Who assumed the risk of loss while the beer was in transit?
    4. At what point did the buyer have an insurable interest in the beer?


Explain your reasoning and be sure to reference the rule of law, if applicable.


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