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    Was there a valid rejection of goods

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    Use the IRAC Formula to cover the rule of law and apply it to the situation

    Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics, Inc. The hard drives, which Retail Electronics expressly requires to have certain amounts of memory, are to be shipped "F.O.B. Retail Electronics distribution center in Memphis, TN." When the drives arrive, Retail Electronics rejects them and informs Quality Computer, claiming that the drives do not conform to Retail Electronics' memory requirement. A few hours later, the drives are destroyed in a fire at Retail Electronics' distribution center. Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?

    Limit answers to approximately two paragraphs. Use the IRAC formula to address the situation. Cover the rule of law and briefly apply it to the situation.

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    Solution Preview

    Issue: Was there a valid rejection of goods?


    "F.O.B. is an abbreviation for "free on board." The significance of the designation is that it sets the point at which title for goods passes to the purchaser." Commowealth v. Gilmour Mfg. Co., 573 Pa. 143, 147 (Pa. 2003) "The general, legal rule is, that upon sale f. o. b. at point of ...

    Solution Summary

    IRAC determines if there was a valid rejection of goods.