11-4A. 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 Carlsons, 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 Carlsons filed a suit in a federal district
court against the RV’s manufacturer, Monaco Coach Corp., alleging in
part, breach of warranty under the 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)]
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