Prairie Threads Inc. (PTI) is a large clothing retailer located in Flats, Nebraska. PTI contracted to...

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Prairie Threads Inc. (PTI) is a large clothing retailer located in Flats, Nebraska. PTI contracted to purchase clothing items from Jeans Inc., a clothing manufacturer located in Stix, Texas. The agreement provided "price $1,500,000 payment due within 60 days, F.O.B. Jeans Inc. mfg. plant Stix, TX; delivery by Crash Carrier Corp (CCC)". Based on these facts, answer the following questions. 1. CCC picked up conforming goods from Jeans, Inc. and while transporting them to PTI, the truck trailer was destroyed in a freak refueling accident and all of the goods were destroyed. Jeans Inc. claims PTI owes the payment of $1.5 M for the goods and PTI has refused to pay claiming they are not obligated to pay since the goods were never delivered to them. Who wins this case? Explain. 2. Same facts as above except that Jeans Inc. loaded the wrong items and the goods being shipped were not what PTI had ordered. Who wins in this this situation and why? Explain. 3. Assume Jeans, Inc. sent conforming goods but while in-transit the truck trailer was hi-jacked, and the goods stolen by Vader. Vader then offered the goods for sale in an online ad and was able to sell the goods to Clothing Liquidators Inc. (CLI), who was unaware they were stolen. CLI was in the process of getting the items ready for sale at their large liquidation store in Kansas City. Before they could sell the items, the FBI intervenes and recovers the goods. Who is entitled to the goods at this point: Jeans Inc., PTI, or CLI? Explain your choice, giving reasons for your answer. Prairie Threads Inc. (PTI) is a large clothing retailer located in Flats, Nebraska. PTI contracted to purchase clothing items from Jeans Inc., a clothing manufacturer located in Stix, Texas. The agreement provided "price $1,500,000 payment due within 60 days, F.O.B. Jeans Inc. mfg. plant Stix, TX; delivery by Crash Carrier Corp (CCC)". Based on these facts, answer the following questions. 1. CCC picked up conforming goods from Jeans, Inc. and while transporting them to PTI, the truck trailer was destroyed in a freak refueling accident and all of the goods were destroyed. Jeans Inc. claims PTI owes the payment of $1.5 M for the goods and PTI has refused to pay claiming they are not obligated to pay since the goods were never delivered to them. Who wins this case? Explain. 2. Same facts as above except that Jeans Inc. loaded the wrong items and the goods being shipped were not what PTI had ordered. Who wins in this this situation and why? Explain. 3. Assume Jeans, Inc. sent conforming goods but while in-transit the truck trailer was hi-jacked, and the goods stolen by Vader. Vader then offered the goods for sale in an online ad and was able to sell the goods to Clothing Liquidators Inc. (CLI), who was unaware they were stolen. CLI was in the process of getting the items ready for sale at their large liquidation store in Kansas City. Before they could sell the items, the FBI intervenes and recovers the goods. Who is entitled to the goods at this point: Jeans Inc., PTI, or CLI? Explain your choice, giving reasons for your answer.

Answer rating: 100% (QA)

In this situation PTI would win the case The contract stated that the payment of 15 million was due ... View the full answer