SOFTWARE
Seller is a software company that has a professional suite of software for law office operations. Purchasers can either get the software mailed to them on CDs for $1,099, or can download the software from the Web for $999. Lawyer downloads the Web-based software and pays the money. Unfortunately, the software has a defect that causes Lawyer’s entire system to crash, causing serious damage and losses to his law practice. Lawyer wants to sue Seller. In particular, Lawyer wants to argue that his software purchase is an Article 2 transaction because Article 2 provides better implied warranties (see UCC section 2-314 as an example) than does the common law. What is Lawyer’s argument that the software purchase was a sale of “goods” for purposes of UCC Article 2? What is Seller’s argument that the purchase was not a sale of goods? Be sure to use UCC § 2-105(1) in both sides’ arguments.
FURNITURE
Ivy League University’s law school is moving into a new building this summer, and it decided to get rid of some of its old furniture in connection with the move. Mr. Hart, for sentimental reasons, purchased a glass-top wooden coffee table that had previously been housed for many years in the office of his beloved Contracts professor, Kingsfield. Regrettably, the glass top on the table contained invisible hairline stress points, and the first time Mr. Hart placed a mug of hot coffee on the table, the glass explosively shattered. Mr. Hart suffered both first-degree burns from the splattering coffee and serious cuts and bleeding from the shards of glass. He now wants to sue Ivy League University for breach of the implied warranty of merchantability in its sale to him of the coffee table.
(a) Is Ivy League University a “merchant”? Consult UCC § 2-104(1) and its Official Comment 2. Be prepared to argue both sides. (b) Assume instead that Ivy League University is actually “Ivy League Consignment,” a merchant that regularly sells used furniture, including (the coffee table it acquired from the law school). Did Ivy League Consignment breach the implied warranty of merchantability as to the coffee table it sold to Mr. Hart? Consult UCC § 2-314 and its Official Comments 3 and 4. Be prepared to argue both sides.
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