Quick vs.

Greenwood Building
Supply Case
Law Summary
Business Management and Employment Law
MGMT 325

Kori Kay Sandberg

March 2, 2016
 Quick vs. Greenwood Building Supply Case

Quicks Building Supply entered into a valid written contract to sell 1,000 board feet of Oak
wood without blemishes or knotholes to Greenwood Kitchen Cabinets for $5,000. Greenwood
personally selected the boards, and Quick had the wood he selected placed in a special bin to be
held for Greenwood. Quick and Greenwood agreed that Greenwood would pick up the material
within two weeks. After the contract was signed but before the date Greenwood attempted to
pick up the Oak, insects severely damaged much of the wood. Greenwood had not yet paid for
the wood at the time he learned of the damage. Greenwood demanded undamaged material, but
Quick refused stating that Greenwood needed to accept and pay for the damaged wood as
originally agreed. What are your recommendations for Greenwood?
Utah Code Section 70A-2-613 provides that in the event that the casualty of identified goods
occurs without fault of either the buyer or seller in a contract, (2) the buyer may demand
inspection and have the option to either disaffirm the contract or purchase any of the salvageable
identified good for a reasonable price.
When Greenwood selected the wood personally, it became identified goods. The severe wood
damage acts as the casualty that was neither the fault of the buyer or the seller as it was caused
by insects. Thus there may be a rescission of the contract or Greenwood may be allowed to
purchase any wood he deems is salvageable for a reasonable price; enforceable under this section
of law.
I recommend Greenwood evaluate the condition of the wood if it is salvageable and worth the
opportunity cost, otherwise, I would suggest to avoid the contract completely and investigate
other options. In the future I advise Greenwood pay for and pick up any lumber at the time of
choosing to avoid any further incidences of this nature. I also recommend contacting our legal
counsel before proceeding further.

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 Appendix
70A-2-613- Casualty to identified goods.

Where the contract requires for its performance goods identified when the contract is made,
and the goods suffer casualty without fault of either party before the risk of loss passes to the
buyer, or in a proper case under a "no arrival, no sale" term (Section 70A-2-324) then:
(1) if the loss is total the contract is avoided; and
(2) if the loss is partial or the goods have so deteriorated as no longer to conform to the contract
the buyer may nevertheless demand inspection and at his option either treat the contract as
avoided or accept the goods with due allowance from the contract price for the deterioration
or the deficiency in quantity but without further right against the seller.

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