The Big Knob Volunteer Fire Company (Fire Co.) agreed to purchase a fire truck from Hamerly Custom
Question:
The Big Knob Volunteer Fire Company (Fire Co.) agreed to purchase a fire truck from Hamerly Custom Productions (Hamerly), which was in the business of assembling various component parts into fire trucks. Fire Co. paid Hamerly $10,000 toward the price two days after signing the contract. Two weeks later, it gave Hamerly $38,000 more toward the total purchase price of $53,000. Hamerly bought an engine chassis for the new fire truck on credit from Lowe and Meyer Garage (Lowe and Meyer). After installing the chassis, Hamerly painted the Big Knob Fire Departments name on the side of the cab. Hamerly never paid for the engine chassis, and the truck was repossessed by Lowe and Meyer. The Fire Co. sought to recover the fire truck from Lowe and Meyer. Although the Fire Co. was the buyer of a fire truck, Lowe and Meyer questioned whether any goods had ever been identified in the contract. Were they?
Business Law Legal Environment Online Commerce Business Ethics and International Issues
ISBN: 978-0134004006
9th edition
Authors: Henry R. Cheeseman