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11–4. Shipment and Destination Contracts In 2003, Karen Pearson and Steve and Tara
Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartini’s RV Sales in
Grass Valley, California. On September 29, Pearson, the Carlson’s, and DeMartini’s signed a
contract providing that “seller agrees to deliver the vehicle to you on the date this contract is
signed.” The buyers made a payment of $145,000 on the total price of $356,416 the next day,
when they also signed a form acknowledging that the RV had been inspected and accepted.
They agreed to return later to have the RV transported out of state for delivery (to avoid paying
state sales tax on the purchase). On October 7, Steve Carlson returned to DeMartini’s to ride
with the seller’s driver to Nevada to consummate the out-of-state delivery. When the RV
developed problems, Pearson and the Carlson’s filed a suit in a federal district court against the
RV’s manufacturer, Monaco Coach Corp., alleging, in part, breach of warranty under state law.
The applicable statute is expressly limited to goods sold in California. Monaco argued that this
RV had been sold in Nevada. How does the Uniform Commercial Code (UCC) define a sale?
What does the UCC provide with respect to the passage of title? How do these provisions apply
here? Discuss. [Carlson v.
Monaco Coach Corp., 486 F.Supp.2d 1127 (E.D.Cal. 2007)]
11–5. Additional Terms Continental Insurance Co. issued a policy to cover shipments by
Oakley Fertilizer, Inc. Oakley agreed to ship three thousand tons of fertilizer by barge from New
Orleans, Louisiana, to Ameropa North America in Caruthersville, Missouri. Oakley sent Ameropa
a contract form that set out these terms and stated that title and risk would pass to the buyer
after the seller was paid for the goods. Ameropa e-mailed a different form that set out the same
essential terms but stated that title and risk of loss would pass to the buyer when the goods were
loaded onto the barges in New Orleans. The cargo was loaded onto barges but had not yet been
delivered when it was damaged in Hurricane Katrina. Oakley fi led a claim for the loss with
Continental but was denied coverage. Oakley fi led a suit in a Missouri state court against the
insurer. Continental argued that title and risk passed to Ameropa before the damage as specified
in the buyer’s form under Section 2–207(3) of the Uniform Commercial Code because the parties
did not have a valid contract under UCC 2–207(1). Apply UCC 2–207 on additional terms in an