Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 10

Remedies of the Buyer. Woodridge USA Properties, LP, bought eighty-seven commercial truck trailers under a contract with Southeast Trailer Mart (STM), Inc. Southeastern Freight Lines, Inc., owned the lot in Atlanta, Georgia, where the trailers were stored. Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. They did not indicate that Woodridge was the buyer. Woodridge asked McCarty to hold the documents and sell the trailers for Woodridge. Within three months, all of the trailers had been sold, but McCarty had not given the proceeds to Woodridge. Woodridge-without mentioning the title documents-asked STM to refund the contract price. STM refused. Later, Woodridge filed a suit in a federal district court against STM, claiming that the title documents had been defective and seeking damages. Does Woodridge have a right to recover damages for accepted goods? What would be the measure of the damages? Explain. [ Woodridge USA Properties , L.P v. Southeast Trailer Mart , Inc., ____ F.3d ____ (11th Cir. 2011)]