Third Party stuff

Question 1

Under UCC, when can seller or buyer sue third party for damaging goods?

Answer 1

1. The seller can sue if she retains title or has a security interest
2. The buyer can sue if the goods are specifically identified.

Question 2

Statute of limitations?

Answer 2

Normally 4 years after CoA arises. This can be modified down by K but not below 1Y and it cannot be increased.

Question 3

Third-party rights—

—Look for problems relating to title:

Answer 3

A buyer who obtains title unlawfully possesses a voidable title

A person with voidable title can transfer good title to a good faith purchaser for value. True even if:
1. The seller was deceived by the buyer’s identity;
2. The buyer’s check bounced; and
3. Delivery was procured through fraud.

Question 4

Third-party rights—

Title cannot be obtained by ___________

Exceptions?

Answer 4

Theft

Even a good-faith purchase by a subsequent buyer cannot normally cut off rights from the true owner if there has been theft.

There are two exceptions:
1. The buyer has made improvements to the goods; or
2. The true owner indicates, by words or conduct, that the thief had good title.