Q Our first case this week is based on chapter 14. It involves Scotwood Industries and Frank Miller and Sons. Scotwood sells calcium chloride flake for use in ice melt products to Frank Miller. Scotwood delivered 37 shipments to Miller between July and September of 2015. After each delivery, Scotwood billed Miller, which paid thirty-five of the invoices and processed 30 to 50 percent of the flake. In August, Miller began to complain about the quality of the product. Scotwood assured Miller that it would remedy the situation. Finally, in October, Miller told Scotwood, “This is totally unacceptable. We are willing to discuss Scotwood picking up the material.” Miller claimed the flake was substantially defective because it was chunked. Calcium chloride maintains its purity for up to five years, but if it is exposed to and absorbs moisture, it chunks and becomes unusable. Scotwood sued to collect payment on the unpaid invoices. In response, Miller filed a counterclaim in a federal district court for breach of contract, seeking to recover based on revocation of acceptance, among other things. Can Miller revoke acceptance of the goods and recover damages? Why or why not? Is there an ethical basis for allowing the buyer to revoke acceptance of goods and recover damages? If so, is there an ethical limit to this right? Explain your response.

View Related Questions