John Beal ran a cleaning business. He purchased a windowblind cleaning machine from Daniel Griffin for $18,000.

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John Beal ran a cleaning business. He purchased a window‑blind cleaning machine from Daniel Griffin for $18,000. Griffin told Beal that the best way to ship the machine was by “electronic” means, in other words, with the special care given to sensitive electronic equipment. They agreed that Griffin would package the machine for safe shipment, arrange for “electronic” shipping, and insure the shipment. Beal would pay for it.

Griffin did not in fact use electronic shipping, nor did he purchase insurance. When the machine arrived, it was inoperable. Beal immediately telephoned Griffin, who urged Beal to accept the machine, with the understanding that Griffin would obtain money to have it repaired. On those conditions, Beal accepted the machine. He waited a year for Griffin to arrange repairs, but the machine was never fixed. During that year, he had the machine inspected and it appeared not to be the model he had ordered. Beal rejected the machine and sued Griffin.


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What is the result if the parties did not allocate the risk of loss in their contract?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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