Question
Recall that economists and others use the term widgets to mean any good, could be computer chips, apples, phones, tables, etc; and refer to UCC
Recall that economists and others use the term "widgets" to mean any good, could be computer chips, apples, phones, tables, etc; and refer to UCC section 2-319 below for this thread:
2-319. F.O.B. and F.A.S. Terms.
(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which
(a) when the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this Article (Section 2-504) and bear the expense and risk of putting them into the possession of the carrier; or
(b) when the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this Article (Section 2-503);
(c) when under either (a) or (b) the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this Article on the form of bill of lading (Section 2-323).
(2) Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at a named port, even though used only in connection with the stated price, is a delivery term under which the seller must
(a) at his own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock designated and provided by the buyer; and
(b) obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within subsection (1)(a) or (c) or subsection (2) the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriate case its name and sailing date. The seller may treat the failure of needed instructions as a failure of cooperation under this Article (Section 2-311). He may also at his option move the goods in any reasonable manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents.
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Assume the following facts: Acme Mfg. in Los Angeles makes k with HiTek Computers in Syracuse, under which Acme will sell 10,000 widgets to HiTek at $100/widget. After receiving full payment from HiTek, Acme gives the package of widgets to UPS for delivery to HiTek; but, during shipment by train, the train crashes & the container with the widgets is destroyed.
Can you answer just 1 of the following questions (only after first reading all previous postings to ensure that you are not posting largely redundant information):
(a) Is Acme required to immediately either send a new shipment of widgets to HiTek or immediately reimburse HiTek for the payment if the contract specified "F.O.B. Los Angeles"? Please be sure to discuss/explain the particular UCC sections that apply to this situation.
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