Legal Disputes over Vehicle Ownership and Rental Agreements in Spring 2010 Sales Exam, Exams of Consumer Law

Download Legal Disputes over Vehicle Ownership and Rental Agreements in Spring 2010 Sales Exam and more Exams Consumer Law in PDF only on Docsity! EXAM# _ Article 2-Sales Spring 2010 Final Examination Professor Dickinson This is the examination for the Spring 2010 course Article-2-Sales. This examination consists of three questions. To complete this examination, you should answer two ofthe three questions presented below. It is your choice which two questions to answer. All three questions carry equal weight. You are to respond to only two ofthese three questions. DO NOT respond to all three questions. The Rules: 1) You have one (1) hour to complete this examination, unless the Dean's office has determined otherwise. 2) Be sure to designate each response by the question number to which you are responding. If you choose to record your response in the examination books provided you must write in ink and then only on the right hand page ofeach book you choose to submit. 3) You may have with you and consult through out the examination a copy ofSelected Commercial Statutes published by Thomson West, annotated in your own handwriting as you wish. You may have no other materials other than writing implements or the scratch paper provided with you during the examination. 4) You may possess and consult a single purpose first language (other than English) to English dictionary during the examination. S) The law of this examination is the 2002 version ofUCC Article 2 (old Article 2) or, if relevant, the 2002 version of Article 2A. ______________Question 1 --- Tom Truesdale agreed to sell his 1921 Frost Heave to a person representing himself as Bill Bogus, in exchange for a cashier's check. Tom signed over the title to ~he Frost Heave to Bogus and gave him the car. Ten days later, Tom discovered that the cashier's check was forged and went immediately to the police and filed a stolen vehicle report. The police did not locate either Bogus or the Frost Heave, and the case grew cold. Two years after these events, Tom asked the police to run a check on the Frost Heave's vehicle identification number. The check yielded the name and address ofIda Pierce as the person holding the certificate of title to the Frost Heave. Ida had purchased the car for $200.QO from her brother, who, in tum had purchased it in response to a newspaper advertisement. . A) Tom has filed suit against Ida in the proper court to establish legal ownership of the Frost Heave. You are the Court to determine the question. Rule whether Tom or Ida is the legal owner of the Frost Heave and articulate the basis for your determination. See text: p 280. . __---- Question 11 _ Aiello Amusements rents vending and gaming machines in Western Pennsylvania and maintains a warehouse to house the ma<;hines it has on hand for rent. AA has entered into a written agreement with the Highland Hotel to place a pinball machine in its bar. The contract included provisions that Highland is to supply the e'ectricity and make a monthly payment of $100.00 along with one half ofthemachine's receipts; AA was to service the machine when Highland called. The agreement was to continue for five years following its execution. After the first year of this arrangement the AA bookkeeper noted that the average monthly income from the Highland-placed machine was the $100.00 rent plus $60.0Q machine revenue. After the first year the Highland figured that its cost for electricity for the machine was $70.00 each month and thus the arrangement was a loser for it. Highland tried to renegotiate.the arrangement with AA. These negotiations ¥fere strained, acrimonious and fruitless to the point that Highland demanded that AA take the machine out of its premises. The machine was returned to the AA warehouse where it sat for the fO)lf remaining ,years of the rental agreement. During this period other machines were removed from the warehouse pursuant to agreements with other AA customers, but at no time were all the AA warehoused machines rented out, so it was unlikely that the Highland machine was ever lonely. AA decided that there was no relationship with Highland worth preserving so determined to sue Highland for damhges for Highland's breach of the rental agreement, figuring that it lost $160.00 each month excluding expenses saved for the four years contracted for, even though it had the machine in its warehouse for the whole time. On these facts, is AA enti.t1ed to the damages it proposes? If so, explain why. Ifnot, explain why not. See: text: p 404.