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Chapter 32 Sale and Quality of Goods: Cases

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Case: Half the Advertised Car

Taylor advertised: Herald convertible, white, 1961, twin carbs. 190. Telephone Welwyn Garden after 6.00 pm". Beale visited Taylor and was given a ride on the car. After buying the car, the garage diagnosed the car was welded out of two cars. The back portion was from a 1961 model but the front and the engine was an older model.

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Case: Half the Advertised Car

Taylor denies that it was a sale by description. According to him, it was the sale of a particular car as seen, tried and approved... By the [buyer] having had an abundant opportunity to inspect and test the car.

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Summary
On examination, the description is modified only to the extent of apparent deviations an ordinary examination would bring out.

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Judgement: Beale v Taylor

... if the buyer has not seen the goods, then in the ordinary way the contract would be one where the buyer relied on the description alone. Sale of goods by description may, however, apply where the buyer has seen the goods if the deviation of the goods from the description is not apparent

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Summary
1. If the buyer has not seen or examined the goods, the supplied goods must meet the description. 2. If the buyer has seen or examined the goods but the deviations from description would not be apparent on an ordinary examination, the goods must meet the description. 3. If the buyer has seen or examined the goods and the deviations from description would be apparent on an ordinary examination, the description would be modified to the extent of the deviations.

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Legal Provision
15. Sale by description.- Where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description

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Inspection/Test clause in SCC

GCC have clause giving the right to the buyer to access, examine and test goods at the premises of the seller.

The clause states that the testing or examination would not qualify the description.

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Case: Automatic Kettle

Ajit went to a shop, Shuvit Appliances, to buy an automatic electric kettles. Automatic kettles are fitted with a thermostat which switches off the kettle after water has boiled. There were several competing brands. The shopkeeper was recommending Symon brand. Ajit, however, asked for Monex brand. The shop had prominently put the sign: Goods once sold will not be returned. Ajit is extremely unhappy with the purchase. The kettle switches off when the water is just about beginning to get hot. As a result, the kettle never gives him hot, steaming water to make his coffee. Does Ajit have a remedy?
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Constant George v. Dixon Store

George bought a computer and printer for a purchase price of some 3,500. The computer comprised of a computer unit, mouse, keyboard, monitor and a remote control. The computer worked fine with the mouse and the keyboard. However, the remote control, which could do some of the functions of mouse, was not working. Another software for the remote control needed to be loaded in the computer.

George insists on returning the set and getting back his money.
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Case: Imitation Pearls

Ranjani bought synthetic pearls from a shop Aesthetics: A womans shop thinking that they were natural pearls. The pearls were hung on stands with prices written on them. You could choose what you wanted. She wants to return back the pearls and claim her money back.

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Variation of the Case

The shop had a board saying Aesthetics: A womans Shop for Authentic Jewellery.

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Variation of the Case

The section in the shop, from where Ranjani picked up her purchase, had the word pearls written on the shelf.

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Variation of the Case

Ranjani had asked the shopkeeper if the pearls were natural and he had said yes.

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Variation of the Case

The law required that the sale of imitation jewellery should carry a declaration that the items were imitations. The shop had made no declaration to this effect.

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Case: Defective Photocopier

Monex Limited bought 100 photocopiers from a seller of photocopiers. The following description was given in the invoice and other documents. Photocopier Machine- 100 pieces 16 Ppm (A4) Or More Scan Resolution 1200 Dpi or More Speed 3 Sec per page at 33.6 Kbps The goods supplied were of the above description. However, two of the photocopiers, on every use, got heated quickly, stopped working, and the paper perpetually got stuck in the rollers. Is there a remedy for the Monex Limited?
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Case: Self-Service Store

Deep bought a packet of tea from a self-service store. After reaching home, he realised that it was not his favourite brand. The packet was also green and white in colour but it was a different new brand. Deep wants to return back the packet and claim his money. Does he have a remedy?

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Case: Defective Music CD

Arman bought a music CD from a bookstore. The book store provided the following as the terms of sale: We do not offer guarantees on behalf of the manufacturers on the items sold in our stores. On playing, the CD skipped and the sound spliced. There was a manufacturing defect in the CD. Arman took it to the bookstore. The bookstore indicated it to him that they had explicitly put up notices in the store that they took no responsibility for manufacturing defects. Arman wants to proceed against the manufacturers. Decide on Amans remedy against the manufacturer and the book store.
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Cooling Solutions
The buyer asked for a cooling system for storing cheese in its retail store. If the temperature became very low, cheese would freeze and its taste and texture change. If the temperature became high, cheese could deteriorate. The freezer system, being in a retail store, would be opened frequently by the customers.

The manufacturer-seller recommended and supplied a model. The cooling system did not serve the purpose.
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Summary: Layering of principles

Buyer Beware is the original rule. Over a period of time, the following exceptions have got superimposed over it: 1. Goods should confirm with description. 2. Goods should be of merchantable quality.

3. Goods should be fit for the described purpose if the buyer relies on the skill and judgement of the seller.
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Legal Provision: Section 16

16. Implied conditions as to quality or fitness.no implied warranty or condition as to the quality or fitness (Buyer Beware) except as follows: (1) Where the buyer makes known to the seller the particular purpose for which the goods are required relies on the seller's skill or judgment, and the goods are of a description which it is in the course of the seller's business to supply (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be reasonably fit for such purpose.
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Legal Provision: Section 16

(2) Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality: Provided that, if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed.

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Legal Provision: Sec 15

15. Sale by description.- Where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description; and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

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Defective Washing Machine

A buyer bought a washing machine. It worked for a day. Thereafter, the washing machine stopped working completely. The buyer had not signed on any contract document. What are the remedies available for the buyer?

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Compressor Under Warranty

Saini purchased an air compressor from a seller. In the first week itself smoke and burning smell came out from the compressor and the unit stopped functioning. The buyer is agitated and wants to return the compressor and get his money back. (12) Warranty: The equipment is warranted for a period of 6 months from the date of purchase. We will at our option repair it, or replace parts. The limited one-year warranty and remedy set forth above are in lieu of all implied or express condition and warranty.
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TRG Industries
Buyer- TRG Industries Manufacturer- Chzk-Dormash Services Mr. Khemka Machine delivered on March 23 but could not be commissioned till June end despite several visits by technicians.

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cont
Warranty : The equipment will be warranted for a
period of 12 months from the date of commissioning at site for any manufacturing defects.

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Judgement
Hiring charges cannot be claimed as damages. The buyer could have bought another machine but not hired. Manufacturer and Mr. Khemka are the responsible parties. There is no privity between the procurer and the buyer.
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cont
The transaction between the parties is a commercial transaction. The money remained blocked and the machinery never served the purpose for which it was purchased. (The buyer) must be paid interest on the amount paid towards the price of the machinery. The (buyer) has claimed interest at the rate of eighteen per cent per annum, but taking into consideration the market rate of interest, I deem it appropriate to grant simple interest at the rate of fifteen per cent per annum on the said amount of Rs.42,08,469/-. Such an interest would be payable from 02.03.2002 till date of payment.
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