CONTRACTS FINAL EXAM - PROF. FERRIELL - SPRING 1997
QUESTION 3 - 20 Points - 30 MINUTES
Confine your answer to 2 pages in a bluebook



Barbara, an attorney, needed a new clock radio for her home. She went to "Manufacturer's Discount Mart" and found a model on the showroom floor she liked for $39.95. After testing the radio and after checking the operation of the alarm Barbara found a sales clerk asked if she could purchase the clock-radio she had picked out. The clerk advised Barbara that he would check the store room to see if additional boxes containing that particular model clock-radio were available.

The clerk left and returned a few minutes later with a box displaying the model she had selected. The clerk told her that this was the only one left at the sale price of $39.95; Barbara responded "I'll take it" and, box in hand, headed toward the checkout line. While in line she noticed a sign posted by the cash registers. It said:

MANUFACTURER'S DISCOUNT MART DISCLAIMS ANY LIABILITY FOR ANY EXPRESS OR IMPLIED WARRANTY, INCLUDING ANY WARRANTY THAT THE GOODS WILL BE FIT FOR ANY ORDINARY OR PARTICULAR PURPOSE. IF GOODS PURCHASED AT MANUFACTURER'S DISCOUNT MART PROVE DEFECTIVE IN ANY WAY, PLEASE SEE THE MANUFACTURER'S WARRANTY PROVIDED WITH THE ITEM YOU PURCHASED.

Satisfied that Universal Electronics, the manufacturer of the clock-radio she was going to purchase, would be likely to supply an adequate warranty, Barbara completed the purchase at the cash register and left with her radio.

Upon arriving home and unpacking her new clock-radio she noticed a card labeled "Universal Electronics Warranty". It provided:

Universal Electronics Warranty

Universal Electronics will replace any of its products that prove defective within 10 days of original purchase. To obtain a replacement send the defective product to Universal Electronics at its headquarters, a copy of your sales receipt, and a description of the problem. Universal Electronics will promptly replace the item.

 
That night, Barbara plugged in her new clock-radio, set the alarm for 6:00 am, and went to sleep. The clock malfunctioned during the night. It failed to sound the alarm at 6:00 am, causing Barbara to oversleep. As a result, Barbara missed an crucial court date, causing the judge to enter judgment against one of her clients for $500,000.

Assume you are a new law clerk working in Barbara's office. Draft a memo outlining her likely rights and remedies against Universal Radio & Manufacturer's Discount Mart.