LAW 600A Lecture Notes - Lecture 35: Implied Warranty, Financial Statement
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I(cid:374) a(cid:374) i(cid:374)stall(cid:373)e(cid:374)t (cid:272)o(cid:374)tra(cid:272)t, the (cid:271)uyer (cid:272)a(cid:374) o(cid:374)ly reje(cid:272)t the i(cid:374)stall(cid:373)e(cid:374)t if it (cid:862)su(cid:271)sta(cid:374)tially i(cid:373)pairs the (cid:448)alue of the i(cid:374)stall(cid:373)e(cid:374)t. (cid:863) ucc section 2-612(2). Under ucc 2-612(3), the buyer can cancel the entire contract if a non-conforming tender substantially impairs the value of the whole contract. Midwest mobile diagnostic imaging, l. l. c. v. dynamics corp. of am. Plaintiff contracts with defendant for the manufacture and purchase of mobile. Defendant delivers its first trailer which does not meet specifications and plaintiff rejects. Defe(cid:374)da(cid:374)t"s atte(cid:373)pt (cid:449)as u(cid:374)satisfa(cid:272)tory a(cid:374)d plai(cid:374)tiff reje(cid:272)ts agai(cid:374) Defendant again attempts to cure and plaintiff cancels the contract. Plaintiff sues to recover costs paid to defendant. Interpreting ucc 2-612, the contract in this case was an installment contract. The (cid:271)uye(cid:396) (cid:396)ightfully (cid:396)eje(cid:272)ted the fi(cid:396)st t(cid:396)aile(cid:396) a(cid:374)d defe(cid:374)da(cid:374)t"s atte(cid:373)pt to (cid:272)u(cid:396)e because they did not conform to the specifications of the original contract.
