Part2 Sale and Quality of Goods

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Chapter 32

Sale an

d Quality of Goods: Cases

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Case: Half the Advertised Car

Taylor advertised: Herald convertible, white, 1961,twin carbs. 190. Telephone Welwyn Garden after 6.00

pm".

Beale visited Taylor and was given a ride on the car.After buying the car, the garage diagnosed the carwas welded out of two cars. The back portion was

from a 1961 model but the front and the engine wasan older model.

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Case: Half the Advertised Car

Taylor denies that it was a sale by description.According to him, it was the sale of a particular caras seen, tried and approved... By the [buyer] havinghad an abundant opportunity to inspect and test the

car.

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Summary

On examination, the description is modified only tothe extent of apparent deviations an ordinaryexamination would bring out.

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Judgement: Beale v Taylor

... if the buyer has not seen the goods, then in theordinary way the contract would be one where the

buyer relied on the description alone. Sale of goodsby description may, however, apply where the buyerhas seen the goods if the deviation of the goods fromthe description is not apparent

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Summary

1. If the buyer has not seen or examined the goods, thesupplied goods must meet the description.

2. If the buyer has seen or examined the goods but the

deviations from description would not be apparenton an ordinary examination, the goods must meetthe description.

3. If the buyer has seen or examined the goods and the

deviations from description would be apparent onan ordinary examination, the description would bemodified to the extent of the deviations.

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Legal Provision

15. Sale by description.- Where there is a contractfor the sale of goods by description, there is animplied condition that the goods shall correspondwith the description

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Inspection/Test clause in SCC

GCC have clause giving the right to the buyer to

access, examine and test goods at the premises of the

seller.

The clause states that the testing or examination

would not qualify the description.

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Case: Automatic Kettle

Ajit went to a shop, Shuvit Appliances, to buy anautomatic electric kettles. Automatic kettles are fittedwith a thermostat which switches off the kettle after waterhas boiled. There were several competing brands. The

shopkeeper was recommending Symon brand. Ajit,however, asked for Monex brand. The shop had

prominently put the sign: Goods once sold will not bereturned. Ajit is extremely unhappy with the purchase.

The kettle switches off when the water is just aboutbeginning to get hot. As a result, the kettle never giveshim hot, steaming water to make his coffee.

Does Ajit have a remedy?

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Constant George v. Dixon Store

George bought a computer and printer for a purchaseprice of some 3,500. The computer comprised of acomputer unit, mouse, keyboard, monitor and a remotecontrol. The computer worked fine with the mouse and

the keyboard. However, the remote control, which coulddo some of the functions of mouse, was not working.Another software for the remote control needed to beloaded in the computer.

George insists on returning the set and getting back hismoney.

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Case: Imitation Pearls

Ranjani bought synthetic pearls from a shopAesthetics: A womans shop thinking that theywere natural pearls. The pearls were hung on standswith prices written on them. You could choose whatyou wanted.

She wants to return back the pearls and claim hermoney back.

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Variation of the Case

The shop had a board saying Aesthetics: A womans

Shop for Authentic Jewellery.

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The section in the shop, from where Ranjani pickedup her purchase, had the word pearls written on theshelf.

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Ranjani had asked the shopkeeper if the pearls werenatural and he had said yes.

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The law required that the sale of imitation jewelleryshould carry a declaration that the items wereimitations. The shop had made no declaration to thiseffect.

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Case: Defective Photocopier

Monex Limited bought 100 photocopiers from a seller ofphotocopiers. The following description was given in theinvoice and other documents.

Photocopier Machine- 100 pieces

16 Ppm (A4) Or More Scan Resolution 1200 Dpi or More

Speed 3 Sec per page at 33.6 Kbps

The goods supplied were of the above description.

However, two of the photocopiers, on every use, gotheated quickly, stopped working, and the paper

perpetually got stuck in the rollers.

Is there a remedy for the Monex Limited?

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Case: Self-Service Store

Deep bought a packet of tea from a self-service store.

After reaching home, he realised that it was not his

favourite brand. The packet was also green and white

in colour but it was a different new brand. Deepwants to return back the packet and claim his money.

Does he have a remedy?

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Case: Defective Music CD

Arman bought a music CD from a bookstore. The book

store provided the following as the terms of sale: We do

not offer guarantees on behalf of the manufacturers on the

items sold in our stores. On playing, the CD skipped and

the sound spliced. There was a manufacturing defect in

the CD. Arman took it to the bookstore. The bookstore

indicated it to him that they had explicitly put up notices

in the store that they took no responsibility for

manufacturing defects. Arman wants to proceed against

the manufacturers. Decide on Amans remedy against the

manufacturer and the book store.

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Cooling Solutions

The buyer asked for a cooling system for storingcheese in its retail store. If the temperature becamevery low, cheese would freeze and its taste andtexture change. If the temperature became high,cheese could deteriorate. The freezer system, being ina retail store, would be opened frequently by thecustomers.

The manufacturer-seller recommended and supplied amodel. The cooling system did not serve the purpose.

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Summary: Layering of principles

Buyer Beware is the original rule. Over a period of

time, the following exceptions have got superimposed

over it:

1. Goods should confirm with description.

2. Goods should be of merchantable quality.

3. Goods should be fit for the described purpose if the

buyer relies on the skill and judgement of the seller.

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Legal Provision: Section 16

16. Implied conditions as to quality or fitness.-no implied warranty or condition as to the qualityor fitness (Buyer Beware) except as follows:-

(1) Where the buyer makes known to the seller theparticular purpose for which the goods are required relies on the seller's skill or judgment, and thegoods are of a description which it is in the course ofthe seller's business to supply (whether he is themanufacturer or producer or not), there is an impliedcondition that the goods shall be reasonably fit forsuch purpose.

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Legal Provision: Section 16

(2) Where goods are bought by description from aseller who deals in goods of that description (whetherhe is the manufacturer or producer or not), there is animplied condition that the goods shall be ofmerchantable quality:

Provided that, if the buyer has examined the goods,there shall be no implied condition as regards defectswhich such examination ought to have revealed.

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Legal Provision: Sec 15

15. Sale by description.- Where there is a contractfor the sale of goods by description, there is animplied condition that the goods shall correspondwith the description; and, if the sale is by sample aswell as by description, it is not sufficient that the bulkof the goods corresponds with the sample if the goodsdo not also correspond with the description.

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Defective Washing Machine

A buyer bought a washing machine. It worked for a

day. Thereafter, the washing machine stopped

working completely. The buyer had not signed on any

contract document.

What are the remedies available for the buyer?

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Compressor Under Warranty

Saini purchased an air compressor from a seller. In thefirst week itself smoke and burning smell came out fromthe compressor and the unit stopped functioning. The

buyer is agitated and wants to return the compressor and

get his money back.

(12) Warranty: The equipment is warranted for aperiod of 6 months from the date of purchase. We will

at our option repair it, or replace parts. The limitedone-year warranty and remedy set forth above are inlieu of all implied or express condition and warranty.

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TRG Industries

Buyer- TRG Industries

Manufacturer- Chzk-Dormash Services

Mr. Khemka

Machine delivered on March 23 but could not be

commissioned till June end despite several visits by

technicians.

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cont

Warranty : The equipment will be warranted for aperiod of 12 months from the date of commissioning

at site for any manufacturing defects.

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Judgement

Hiring charges cannot be claimed as damages.

The buyer could have bought another machine but not

hired.

Manufacturer and Mr. Khemka are the responsibleparties.

There is no privity between the procurer and thebuyer.

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cont

The transaction between the parties is a commercial

transaction. The money remained blocked and the

machinery never served the purpose for which it was

purchased. (The buyer) must be paid interest on the

amount paid towards the price of the machinery. The

(buyer) has claimed interest at the rate of eighteen per

cent per annum, but taking into consideration the market

rate of interest, I deem it appropriate to grant simple

interest at the rate of fifteen per cent per annum on the

said amount of Rs.42,08,469/-. Such an interest would be

payable from 02.03.2002 till date of payment.

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Part2 Sale and Quality of Goods