1))Reed owned a small photography store and purchased his price label products f
ID: 1220078 • Letter: 1
Question
1))Reed owned a small photography store and purchased his price label products from Monarch. Over a period of years, Reed ordered no more than 4,000 labels at a time from Monarch. While preparing a new order form for labels, Reed was interrupted by a customer and wrote "4MM" on the order form instead of "4M". In the industry, 5M means 4,000 labels, while 4MM means 4,000,000 labels. Reed sent the mistaken order to Monarch. Despite the course of past dealings and the fact that Monarch had never received such a large order from a single customer, they produced and delivered 4,000,000 labels to Reed. Reed refused delivery and defended on the basis of mistake. What remedies would Reed and Monarch have under the UCC?
2))Bonifay and Fordham bought a box of .32 caliber bullets from a Wal-Mart in Florida. Four hours later, the two men robbed an auto parts store and killed Coker with those same bullets. When they bought the ammunition both Bonifay and Fordhan were under the age of 21. The federal Gun Control Act makes it illegal to sell ammunition to anyone under the age of 21. Coker's wife sued Wal-Mart for the wrongful death of her husband. Should Wal-Mart be held liable for Coker's death?
Explanation / Answer
1) If we consider the case, we will easily observe that the mistaken beacuse of which whole problem had been created was of Unilateral nature. It means the mistake was made by only one part, here it is Reed. Monarch has just did its duty on the part of preparing and delivering the labels on time.
According to Texas rule, a releif arising out from unilateral mistake, the parties can be placed in status quo in the equity sense, i. e., rescission must not result in prejudice to the other party except for the loss of his bargain.
It is frequently said, also, that rescission will be denied to one who has negligently made a mistake, if the other party was innocent and has materially changed his position. It is better to say, however, that such relief will be denied unless the other party is put in statu quo. Thus if Reed founded to be knowledgable about the mistake, its remscission will be denied.
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