Ramirez v. Autosport - Case Brief PDF

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Contract II

Class 22

Ramirez v. Autosport Court: Supreme Court of New Jersey (1982)

Facts: Following a mobile home show, Ramirez (PL) agreed on the sale of a campers and trade in of a van with Autosport (DF). The contract between the parties provided for a $14,100 purchase price with a $4,700 trade-in allowance for the van, which PL left with the DF. Because DF needed two weeks to prepare, the contract provided for delivery on or about August 3, 1978. However, it was deemed “not ready” until August 14. At this point, the outside paint was not finished, the windows were opened, and the dining area cushions were soaking wet. PL did not accept it. On the 15th, title was transferred, but the camper was not ready until Sept. 1. At this point, they were shown to the showroom and told to wait for an hour and a half. They left in disgust, returning later with an attorney friend, and attempting to get the return of the trade-in van. This was already sold.

Issues: Whether a buyer may reject a tender of goods with minor defect and whether a seller may cure the defects.

Procedural History: The trial court ruled that PL rightfully rejected the van and awarded them the fair market value of their trade-in van. The Appellate Division affirmed.

Judgement: Affirmed in favor of the PL.

Reasoning: If goods do not conform to the contract if they are not in accordance with the obligations under the contract. The buyer is authorized to reject goods if they or the tender of delivery fail in any respect to conform to the contract. The rights of the parties initially depend upon whether the rejection occurs before or after the acceptance of goods. The seller also has the ability to cure the defect. The buyer may reject goods with insubstantial defects, and also may cancel the contract if those defects remain uncured.

Rules: The buyer has the ability to reject the good when the goods or the tender of delivery fail in any respect to conform to the contract. The buyer may cancel for insubstantial defects when the seller fails to cure within a reasonable time....