Tuesday, December 3, 2013

Ramirez v. Autosport case brief

Ramirez v. Autosport case brief summary
440 A.2d 1345 (1982)


CASE SYNOPSIS
Defendant challenged a ruling of the New Jersey Superior Court, Appellate Division, holding that plaintiffs rightfully rejected tender of a defective van under New Jersey Uniform Commercial Code, N.J. Stat. Ann. § 12A:1-101 et seq., and awarding plaintiffs the fair market value of their trade-in.

CASE FACTS
Defendant argued that plaintiffs had breached a contract for the sale of a camper van by rejecting tender of the van because it had minor defects, and that they were not entitled to rescind the contract.

DISCUSSION

  • The court found that the New Jersey Uniform Commercial Code, N.J. Stat. Ann. § 12A:1-101 et seq., retained a perfect tender rule, and that plaintiffs had properly rejected tender of the van within a reasonable time. 
  • The court noted that once plaintiff rejected the van, the burden shifted to defendant to prove that the defects had been cured. 
  • The court found that because defendant had not done so within a reasonable time, plaintiffs were entitled to rescind or cancel the contract. 
  • The court then found that the fair market value of their trade-in was the proper remedy rather than recovery of their trade-in, because the trade-in had been sold to an innocent third party.

CONCLUSION
The court affirmed the ruling, holding that plaintiffs could reject tender of the van for minor defects, because the New Jersey Uniform Commercial Code retained the perfect tender rule, and that they could cancel the contract, because defendant failed to cure the defects in a reasonable time.

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