While traveling on Interstate 10 in the vast, arid land between Phoenix and Los Angeles, a traveler's "worst nightmare" occurs. Transmission failure forces tourist Penn Lay to the emergency lane of the highway, and at that time Lay realizes the true value of a cell phone. Lay calls a Phoenix towing company, and his car is transported to S. Li Ping Transmission Repair, Inc.

The repair bill amounts to $4,500. On the bill, transmission parts total $4,000, and labor hours total $1,000 (5 hours at $200 per hour.) Lay believes that the principles of capitalism do not extend to such an exorbitant sum, and he further believes that S. Li Ping interpreted his out-of-state, North Carolina license plate as a "license to steal."

1. Who wins? In litigation between the parties, does the Uniform Commercial Code (UCC) apply, or ordinary contract law ("common" law?) If ordinary contract law applies, should North Carolina or Arizona law apply? 
2. Does S. Li Ping have a legal and/or ethical obligation to charge "out-of-staters" the same repair price as "in-staters?"

Answer rating: 100% (QA)

1In litigation between the parties the Uniform Commercial Code UCC is likely to a... View the full answer