While traveling on Interstate 10 in the vast, arid land between Phoenix and Los
ID: 444267 • Letter: W
Question
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.”
Who wins? In litigation between the parties, does the Uniform Commercial Code (UCC) apply, or ordinary contract law (“common” law)?
The UCC defines goods as moveable and tangible. The case shows a mixed contract, which is to sell goods (car parts) and a service (labor hours)
If ordinary contract law applies, should North Carolina or Arizona law apply?
Does S. Li Ping have a legal and/or ethical obligation to charge “out-of-staters” the same repair price as “in-staters?”
Explanation / Answer
As per the stated case, Ordinary contract law would apply and under that, North Carolina law willl apply, the stated where the car was transported for repair. The car had issues in the southern U.S ,hence, the contarct would be binding in North carolina.
S.L.Ping would be making ethical decision when he would be charging fair and just price from the tourist. A price that is applied in-state or out-state would be levied on a tourist.
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