ARE18 homework 10

ARE18 homework 10 - breach of warranty under state law. The...

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ARE 18 March 9, 2011 Homework 10 11-6. In 2003 Karen Pearson and Steve and Tara Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartini's RV Sales in Grass Valley, California. On September 29, Pearson, the Carlsons, and DeMartini's signed a contract providing that "seller agrees to deliver the vehicle to you on the date this contract is signed." The buyers made a payment payment of $145,000 on the total price of 356,416 the next day, when they also signed a form acknowledging that the RV had been had been inspected and accepted. They agreed to return later to have the RV transported out of state for delivery (to avoid paying sales tax). On October 7, Steve Carlson returned to DeMartini's to ride with the seller's driver to Nevada to consummate the out-of-state delivery. When the RV developed problems, Pearson and the Carlsons filed a suit in a federal district court against the RV's manufacturer, Monaco Coach Corp, alleging
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Unformatted text preview: breach of warranty under state law. The statute is limited to goods sold in California and Monaco argued that this RV had been sold in Nevada. The UCC defines a sale when title switches hands. Since the buyers want the California Lemon Law to apply they claim that the title changed hands in Grass Valley, CA when they all signed the contract. However, Monaco argues that the title did not switch hands until the customers accepted the delivery in Nevada. Title passes to a person when the buyer purchases the vehicle, not when they take possession of it. So the title was passed in Grass Valley, CA, when they went through all the procedures. The judge denied the defendants motion to dismiss on the grounds that the California Lemon Law did not apply and decided that the plaintiff would get a refund, as well as damages....
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