Exam 2 Cases and Examples
21.13 Sale or return Freedom press, a publisher, delivers forty cases of a best selling book to Powell's books, a retailer
If Freedom Press agrees that Powell's can return any unsold copies of the books at the end of a year, the transaction is a sale or return
Example 22.3 Shipment Contracts Zigi's Organic Fruits sells strawberries to Lozier under a shipment contract.
If Zigi's does not arrange for refrigerated transportation and the berries spoil during transport, a material loss will likely result because Lozier will be unable to sell them. Zigi can reject the goods
Example 21.12 Sale on Approval Brad orders a Bowflex Treadmill online, and the manufacturer allows him to try it risk free for 30 days. If Brad decides to keep the Treadmill, then the sale is complete
If he returns it within 30 days, there will be no sale and he will not be charged. If Brad files for bankruptcy within the 30 day period and still has the Treadmill in possession, his creditors may not yet attach the Treadmill because he has not accepted it
Example 22.2 Place of delivery Li Wan and Boyd both live in San Fran. In San Fran, Li contracts to sell Boyd 5 used trucks, which both parties know are located in a Chicago warehouse.
If nothing more is specified in the contract, the place of delivery for the trucks is Chicago. Li may tender delivery by giving Boyd either a negotiable or nonnegotiable document of title. Alternatively, Li may obtain the bailee's (warehouser's) acknowledgment that Boyd is entitled to possession
Example 21.6 When a title document is not required Juarez sells lumber to Bodan. They agree Bodan will pick up the lumber at the yard. If the lumber has been identified (separated, marked, or in any other way distinguished from all other lumber), title passes to Bodan when the contract is signed
If the lumber is still in large storage bins at the mill, title does not pass to Bodan until the particular pieces of lumber to be sold under this contract are identified
Case 20.18 Judicial Admission Gerald, a farmer, agreed by phone to sell his crops to GPC. The parties reached 4 oral agreements; 2 for delivery of soybeans, and 2 for delivery of corn. Gerald made the soybean deliveries and part of the first corn delivery but sold the rest of the corn to another dealer. GPC bought corn elsewhere, paying a higher price, and sued Gerald for breach of contract
In papers file with the court, Gerald acknowledged his oral agreements with GPC and admitted that he did not fully perform The court applied the admissions exception and held that the four agreements were enforceable
Example 22.9 Destruction of identified goods ASE agrees to lease to RB 60 bicycles of a particular model that has been discounted. No other bicycles of that model are available. RB specifies that it needs the bicycles to rent to tourists. Before ASE can deliver the bicycles, they are destroyed in a fire.
In this situation ASE is not liable to RB for failing to deliver the bicycles. Through o fault of either party, the goods were destroyed before the risk of loss was passed to the lessee. The loss was total, so the contract is avoided. Clearly, ASE has no obligation to tender the bicycles, and River has no obligation to make lease payments for them
Example 21.8 part 2 Jan stole the watch from Greg and left it with the jeweler to be repaired. The jeweler then sold it to Kim.
Kim would obtain good title against Jan, who entrusted the watch to the jeweler, but not against Greg (the real owner), who neither entrusted the watch to Jan nor authorized Jan to entrust it
Example 21.8 The Entrustment Rule Jan leaves her watch with a jeweler to be repaired. The jeweler sells both new and used watches. The jeweler sells Jan's watch to Kim, a customer who is unaware that the jeweler has no right to sell it
Kim, as a good faith buyer, gets good title against Jan's claim of ownership. Kim, however, obtains only those rights held by the person entrusting the gods
Example 20.11 Acceptance McFarren Pharmacy orders 5 cases of J&J gauze pads from HT medical supply. if HT ships 5 cases of Xeroform gauze pads instead, the shipment acts as both an acceptance of McFarren's offer and a breach of the resulting contract
McFarren may sue HT for any appropriate damages. If HT notifies McFarren that the Xenoform gauze pads are being shipped as an accommodation (because HT only has Xenoform in stock) the shipment will constitute a counteroffer, not an acceptance. A contract will only be formed if McFarren accepts the Xenoform gauze pads
Example 20.7 Options and Cooperation with Regard to Performance Petry Drugs agrees to purchase 1000 toothbrushes from MDS. Toothbrushes come in a variety of colors, but contract does not specify the color
Petry (buyer) has the right to take 600 blue and 400 red if it wishes. Petru must, however, exercise good faith and commercial reasonableness in making the selection
Example 21.9 Delivery with movement of goods (risk of loss) Pittman, a seller in Texas, sells 500 cases of grapefruit to a buyer in New York, FOB Houston. This term means that the buyer pays the transportation charges from Houston. The contract authorizes shipment by carrier. It does not require that the seller tender the grapefruit in New York.
Risk passes to the buyer when conforming goods are properly placed in possession of the carrier. If the goods are damaged in transit, the loss is the buyers (they have recourse against carriers subject to certain limitations)
Example 20.22 International Contracts A US automaker contracts with a German company. Parties cannot choose the law of China to govern their agreement if neither the contract nor the parties have anything to do with China
The choice of Chinese law in that situation might reflect an attempt to avoid consumer, environmental, or employment laws that would otherwise apply to the transaction
Case 22.10 Assurance and Cooperation 2 companies that made road surfacing materials, Koch and Shore, entered into a contract. Koch obtained a license to use Novachip, a special material made by Shore, and Shore agreed to buy all of its asphalt from Koch for the next 7 years. A few years in to the contract term, Shore notified Koch that it planned to sell its assets to Asphalt Paving Systems. Koch demanded assurances that AOS would continue the deal, but Shore refused to provide assurances
The court held that Koch should treat Shore's failure to give assurances as repudiation and sue Shore for breach of contract
Example 22.4 Exceptions to perfect tender rule In the past, EZ Office supply has frequently accepted blue pens when the seller, Baxter's wholesale, did not have black pens in stock. In this context, Baxter's has reasonable grounds to believe that EZ will again accept such a substitute. Even if EZ rejected the substituted goods on one particular occasion, Baxter's has reasonable grounds to believe that blue pens will be acceptable.
Therefore, if EZ indicates that it will not accept blue pens, Baxter's normally will have a reasonable time to obtain and tender black pens
Example 22.18 Exclusive Remedies STC agrees to sell a pipe cutting machine to UPTC. the contract limits UPTC's remedy exclusively to repair or replacement of any defective parts
Thus, repair or replacement of defective parts is the buyer's only remedy under the contract
Example 21.5 When title passes Joshua buys cattle at a livestock auction
Title will pass when the cattle are physically delivered to him (unless parties agree otherwise)
Case 20.6 Open Payment Term Max agreed to purchase hay from Wagner's farm. Max left his truck and trailer at the farm for Wagner to load the hay. Nothing was said about when the payment was due and the parties were unaware of the UCC's rules. Dispute broke out when Max came to get the hay. Max claimed that he had been given less hay than he ordered and argued that he did not have to pay that time. Wagner refused to release the hay until it was paid for. Max jumped into his truck and drove off without paying for which he was later prosecuted for theft
because the parties had failed to specify when payment was due. UCC controlled, and payment was due at the time Max picked up the truck
Example 22.11 The duty of cooperation Aman is required by contract to deliver 1k LG washing machines to various locations in California before 10/1. Frieda, the buyer, is to specify the locations for delivery. Aman repeatedly requrests for delivery locations, but Frieda does not respond. The washing machines are ready for shipment on 10/1 but Frieda still refuses to give Aman the delivery location
if Aman does not ship on 10/1, he cannot be held liable. Aman is excused for any resulting delay of performance because of Frieda's failure to cooperate
Example 20.20 Usage of Trade PK Loans hires FT to search the public records for prior claims on potential borrowers assets. FT's invoice states, liability limited to amount of fee. In the title search industry, liability limits are common. After conducting many searches for PK, FT reports taht there are no claims with respect to MS Autos. PK loans 100k to MSA. MSA defaults on the loan. PK learns that another lender has priority to MSA's assets under a previous claim
if PK sues FT for breach of contract, FT's liability will normally be limited to the amount of its fee. The statement in the invoice was part of the contract between PK and FT, according to the usage of trade in the industry and the parties course of dealing
Example 22.8 Partial performance a Florida orange grower, Best Citrus inc, contracts to sell this seasons crop to a number of customers, including Martin's grocery chain. Martin's contracts to purchase 2k crates of oranges. Best citrus has sprayed some of its orange groves with a chemical called Karmoxin. USDA discovers that persons who eat products sprayed with Karmoxin may develop cancer and issues an order prohibiting the sale of these products. Best Citrus picks all the oranges not sprayed with Karmoxin, but the quality is insufficient to meet all the contracted for deliveries
in this case, Best citrus is required to allocate its production. It notifies Martin's that it cannot deliver the full quantity specified in the contract and indicates the amount it will be able to deliver. Martin's can either accept or reject the allocation, but Best citrus has no further contractual liability
Example 21.12 Retraction of Repudiation on 4/1, Cora, who owns a small inn, purchases a suite of furniture from Tom, a proprietor of Horton's furniture warehouse. The contract states that delivery must be made on or before 5/1. on 4/10, Horton informs Cora that he cannot make a delivery until 5/10 and asks her to consent to a modified delivery date
in this situation, Cora has 2 options. She can either treat Horton's notice of late delivery as a final breach of contract and pursue a remedy OR agree to the later delivery date. If Cora cancelled the contract, Horton would not be able to retract his repudiation if the goods could in fact be delivered on time
Example 22.13 The right to recover the purchase price of lease payments due Southern realty contracts with Gem Point to purchase 1000 pens with Southern realty's name inscribed on them. Gem point tenders delivery of the pens but Southern realty wrongfully refuses to accept them
in this situation, Gem point can bring an action for the purchase price becasue it delivered conforming goods, and southern realty refused to accept of pay for the goods. GP obviously cannot resell the pens inscribed with the buyer's business name. GP is required to make the pens available to SR, but can resell them at any time prior to collecting the judgment from SR
case 22.16 Right to recover damages JDF inc contracted to buy a 33k gallon tank from DEC for 70k. JDF hired XT ink to pick up the tank but when XT arrived at the pickup location there was no tank. JDF paid $7459 for its services and filed suit against DEC.
the court awarded compensatory damages of 70k for the tank and incidental damages of 7489 for transport. To establish a breach of contract requires an enforceable contract, substantial performance by the nonbreaching party, a breach by the other party, and damages. In this case, JDF agreed to buy a tank and paid the price. DEC failed to tender or deliver the tank, or refund the price. The shipping costs were a necessary part of performance, so this was a reasonable expense
Case 21.10 Delivery without movement of goods (goods held by the seller) Henry purchased a beam at a lumberyard. The lumberyard loaded the bean onto Henry's truck, but did not tie it down. After he drove onto the highway, the beam fell out of Henry's truck and he was injured while trying to retrieve it. Henry sued the lumberyard for negligence
the court held that Henry, not the lumberyard, bore the risk of loss and injury after he left the lumberyard's premises. Once the truck was loaded, the risk of loss passed to Henry under the UCC because he had taken physical possession of the goods
Case 31.5 Discharge Mosely incurred student loans while attending Alcorn State University and then joined the US Army Reserve Officers Training Corps. He was injured during training and resigned from the Corps because of medical problems related to his injuries. Mosely worked briefly for several employers, but depressed and physically limited by his injuries, he was unable to keep any of the jobs. A federal bankruptcy court granted him a discharge under Chapter 7, but it did not include the student loans. Mosely became homeless and had a monthly income of $210 in disability benefits, but still owed 45k in student loans. He asked the bankruptcy court to reopen his case and discharge his student loans based on undue hardship
the court held that Mosely's medical problems, lack of skills, and dire living conditions made it unlikely that he would be able to hold a job and repay the loans. The court therefore discharged the debt, reasoning that Mosely could not maintain a minimal standard of living if forced to repay the loans
Case 20.19 Partial performance Quality Pork International formed an oral contract with Rupari Food Services, which buys food products and sells them to retail operations. Q was to ship 3 orders of pork to Star Food Processing Inc, and Rupari was to pay for the products. Q shipped the goods to Star and sent invoices to Rupari. Rupari billed Star for all three orders but paid Q only the first 2. Q filed suit against R to recover 44k, the cost of the 3rd order. R argued that becasue both parties did not have a written agreement, there was no enforceable contract
the court held that even though Rupari had not signed a written contract or purchase order, it had accepted the goods and partially performed the contract by paying for the first two shipments. Rupari's conduct was sufficient to prove the existence of a contract and was required to pay for the shipment
Case 21.2 Future Goods GB contracted RC to build a motorboat for 278k. The contract required progress payments but did not contain any specific provisions regarding delivery. After 3 years, with boat still not completed, RC filed for bankruptcy. Bankruptcy trustee wanted to sell the unfinished boat to pay RC's creditors, but GB claimed the boat was his (even though it was still on RCs property
the court held that under UCC, the boat constituted future goods becasue it did not exist at the time the contract was signed. Title had not passed to GB becasue the boat had not been identified to the contract. The boat could have been identified by listing its hull number in the contract or by later marking or designating it as GB's, but these steps were not taken. Bankruptcy trustee could sell the boat and distribute the funds to RC's creditors
Case 22.17 the right to reject goods Jorge contracted to buy a new piano for 24k from Bobb's piano sales. When the piano was delivered with unacceptable damage, Jorge rejected it and filed a suit for breach of contract.
the court ruled that Bobb's had breached the contract by delivering nonconforming goods. Jorge was entitled to damages equal to the contract price with interest, plus the sales tax, delivery charge and attorneys fees
Case 31.2 automatic stay Stephany filed for bankruptcy. When she requested a transcript from the university at which she obtained her master's degree, the university refused becasue she owed more than 6k in tuition. Stephany complained in court
the court ruled that the university violated automatic stay by refusing to provide a transcript because it was attempting to collect an unpaid tuition debt
Example 20.21 Course of Performance Janson's Lumber contracts with Lopez to sell Lopez a specified # of 2x4's. The lumber did not exactly measure 2x4. Janson agrees to deliver the lumber in five deliveries. Lopez, without objection, accepts the lumber in the first three deliveries. On the fourth he objects because they are not precisely 2x4
the fact that Lopes accepted the first 3 without objection (course of performance) is relevant in determining what "2x4" means. Janson can prove that in previous transactions, the wrong measurements were accepted as 2x4's
Example 22.5 Substitution of Carriers a sales contract calls for a large generator to be shipped by Mac's trucking on or before June 1. The contract terms clearly state the importance of the delivery date. The employee's of Mac's go on strike
the seller must make a reasonable substitute tender, by another trucking company or perhaps by rail if its available
21.14 When the seller or lessor breaches Lowe's orders stainless steel refrigerators from Whirlpool, FOB Whirlpools plant. Whirlpool ships white refrigerators instead
the white refrigerators (nonconforming goods) are damaged in transit. The risk of loss falls on Whirlpool. Had it shipped the stainless steel refrigerators (conforming goods) instead the risk would have fallen on Lowe's
Example 20.10 Merchant's Firm Offer a used car dealer emails a letter to Gomez on January 1 stating "i have a 2013 Toyota on the lot that I'll sell to you for 22k any time between now and 1/31"
this email creates a firm offer, and the dealer will be liable for breach of contract if he sells the car to another person before 1/31
Example 31.4 Fraudulent Transfers April is planning to petition for bankruptcy, so she sells her gold jewelry, worth 10k to a friend for 500. the friend agrees that in the future he will sell the jewelry back to April for the same amount
this is a fraudulent transfer that the trustee can undo
Example 20.14 Counteroffer Phillips offers to sell Hundert 650 lbs of turkey at a specified price and with specified delivery terms. Hundert accepts offer on the condition that Phillips agrees to give 90 days to pay for them
this response will not be construed as an acceptance, but as a counter offer, which Phillips may or may not accept
Example 21.3 Goods that are part of a larger mass A buyer orders 10k pairs of mens jeans from a lot that contains 90k articles of clothing for men, women, and children
until the seller separates the 10k pairs of mens jeans from the other items, title and risk of loss remain with the seller
Example 20.16 Special rules for contracts between merchants. Statute of Frauds Alfonso is a merchant-buyer. He contracts over the telephone to purchase 6k worth of aircraft parts from Goldstein, a merchant seller. Two days later, Goldstein emails a signed confirmation detailing the terms of the oral contract, Alfonso receives it. Alfonso does not notify Goldstein in writing or email that he objects to the contents of confirmation within 10 days of receipt
Alfonso cannot raise the Statute of Frauds as a defense against the enforcement of the oral contract
Example 21.1 Existing Goods Litco Company contracts to lease a fleet of 5 cars designated by their VINs
Becasue the cars are identified by their VINs, identification has taken place, and Litco acquires an insurable interest in the cars at the time of contracting
Case 20.2 predominant factor test Gene and Martha sell Festival Foods, to Lindsay and Louann for 150k. Includes truck, trailer, freezers, roasters, tables, etc. L&L paid 10k down with balance to come from a bank loan. They took possession and began to use equipment immediately. After 6 events, L&L returned all equipment and wanted out of the deal becasue business did not generate as much income as they expected. G&M sued L&L for the balance due on purchase price (140k) claiming that L&L could no longer reject the goods under UCC. L&L claimed UCC did not apply becasue deal primarily involved sale of business rather than sale of goods.
Court found that UCC governed under predominant factor test. Primary value of the contract was in the goods, not the value of the business. Parties agreed on the essential terms of the contract (price), thus, contract had been formed. L&L took possession and control of all of the physical aspects of the business and had no right to return them
Case 20.1 Goods associated with real estate Colorado homeowners installed heating system under driveways/sidewalks. Systems began to leak because of hardening of a hose. Homeowners sued Goodyear (maker of hose)
Court held that because the hose was a tangible and movable good a the time the contract was made, it was a 'good' under the UCC. Therefore the UCC applied to the contract even though the hose was later incorporated into real property
Example 20.5 Open Price Term Perez and Merrick enter into a contract for the sale of goods and agree that Perez will determine the price. Perez refuses to specify price
Merrick can either treat the contract as cancelled or set a reasonable price
Case 31.1 Can debtor afford to pay unsecured debts? at 33 years old. Lisa owned a home and a car but had 11k in credit card debt. Lisa was earning 49k per year when she filed for chapter 7 bankruptcy. Her petition listed monthly net income of $2800, expenditures of $2900 for a deficit of 100. In calculating her income, Lisa excluded a $300 deduction for contributions to retirement plans.
The US trustee filed a motion to dismiss Lisa's petition due to substantial abuse, claiming that the retirement contributions should be disallowed. The court agreed and dismissed the chapter 7 petition. Because Lisa's retirement contributions were not reasonably necessary based on her age and financial circumstances, the court found that she was capable of paying her unsecured debts
Example 20.9 Output contracts Ruth has planted 2 acres of tomatoes. Bella Union, a local restaurant, agrees to buy all of the tomatoes that Ruth produces that year at the restaurant
because the seller essentially forfeits the right to sell goods to another buyer, there is implicit consideration in an output contract
Example 22.6 part 2 Suppose that, instead, the contract had called for twenty carloads of plywood and only 6 percent of one of the carload had deviated from the thickness specifications in the contract
it is unlikely that a court would find that a defect in 6 percent of one installment substantially impaired the value of the whole contract
Example 20.3 Leases MC wants to lease a crane for construction business. MC's bank agrees to purchase equipment from J Inc and lease equipment to MC.
the bank is the lessor/financer MC is the lessee J is the supplier
Case 22.15 When the seller refuses to deliver goods Houseman and Dare bought a house and a pedigreed dog. When they separated, they agreed that Dare owuld keep the dog (and pay Houseman for her interest in it) and that Houseman would keep the dog. Houseman allowed Dare to take the dog for visits, but after 1 visit, Dare kept the dog. Houseman filed a lawsuit seeking specific performance of their agreement
the court found that because pets have special subjective value to their owners, a dog can be considered a unique good. Thus, an award of specific performance was appropriate
Example 22.7 Commercial Impracticability Houston Oil co., which receives its oil from the middle east, has a contract to supply Northwest Fuels with 100k barrels of oil. Because of an oil embargo by the organization of petroleum exporting countries, Houston is unable to secure oil from the Middle east or any other source to meet the terms of the contract
this situation comes fully under the commercial impracticability exception to the perfect tender doctrine
Example 22.1 Tender of Delivery An order of 1000 Under Armour mens shirts cannot be delivered 2 shirts at a time
If, however, the parties agree that the shirts will be delivered in 4 orders of 250 each as they are produced (for summer, fall, winter, spring inventory), then tender of delivery may occur in this manner
Example 20.12 Additional terms Aldrich emails an offer to sell twenty samsung galaxy 7's to Beal.
if Beal accepts the offer but changes it to require model 8 tablets, then there is no contract
Example 21.11 Erikson leases a helicopter from Jevis Ltd., which is in the business of renting aircrafts. While Erikson's pilot is on the way to Idaho to pick up the helicopter, the helicopter is damaged during an unexpected storm
in this situation, Jevis is a merchant-lessor, so it bears the risk of loss to the leased helicopter until Erikson takes possession of the helicopter
Example 20.8 Requirements Contracts Newport Cannery forms a contract with Victor. The cannery agrees to purchase from Victor and Victor agrees to sell to the cannery, all of the green beans that the cannery requires during the following summer.
there is implicit consideration in a requirements contract because the buyer gives up the right to buy from any other seller, and this forfeited right creates legal detriment
Example 21.4 Fungible Goods A, B and C are farmers. they deposit, respectively, 5k, 3k and 2k bushels of grain of the same grade and quality in a grain elevator. The three become owners in common, with A owning 50%, B owning 30% and C owning 20%. A contracts to sell her 5k bushels to T
Because the goods are fungible, she can pass title and risk of loss to T without physically separating the 5k bushels. T now becomes an owner in common with B and C
Example 31.3 Voidable rights Ben sells his boat to Tara. Tara gives Ben a check, knowing that she has insufficient funds in her bank account to cover the check. Tara has committed fraud
Ben has the right to avoid that transfer and recover the boat from Tara. If Ben files for bankruptcy relief under chapter 7, the trustee can exercise the same right to recover the boat from Tara, and the boat becomes part of the debtor's estate
21.15 Insurable Interest of the Buyer In March, a farmer sells a cotton crop that she hopes to harvest in October
If the contract does not specify otherwise, the buyer acquires an insurable interest in the crop when it is planted becasue the goods (the cotton crop) are identified to the sales contract at that time
Example 21.7 Void Title if Saki steals a valuable necklace owned by Shannon, Saki has a void title to that necklace. If Saki sells the necklace to Valdez
Shannon can reclaim it from Valdez even though Valdez acted in good faith and honestly was not aware that the necklace was stolen
Example 22.6 Installment contracts A contract calls for the parts of a machine to be delivered in installments. The first part is necessary for the operation of the machine, but when it is delivered, it is irreparably defective.
the failure of this first installment will be a breach of the whole contract because the machine will not operate without the first part
Example 20.4 Finance Lease McKessen obtains surgical equipment from a manufacturer and leases it to Vasquez for use at his medical center. Equipment turns out defective. Vasquez stops making lease payments. Mckessen sues
Because lease clearly qualifies as a finance lease under article 2A, a court would rule in favor of McKessen. Vasquez is obligated to make all payments due under lease regardless of the condition or performance of the leased equipment. Vasquez can sue the manufacturer for the defective equipment however
Case 20.13 When one party or both parties are nonmerchants Office.com sells office supplies from the web. Employees of KC school district ordered 17k worth of office supplies from website without authority or approval of their employer. Invoices contained a forum selection clause that required all disputes to be resolved in california. When good were not paid for Office.com sued in California. KC school district objected, arguing that forum selection clause was not binding
Court held that forum selection clause was not part of the parties contract. The clasue was an additional term included in the invoices delivered to a nonmerchant buyer with the purchased goods. Therefore the clause did not become part of the contract unless the buyer expressly agreed, which did not happen
Example 20.17 Statute of Frauds (specially manufactured goods exception) womach orders custom window treatments to use at a day spa business for 6k from HD. The contract is oral. When HD manufactures the window coverings and tenders the delivery to Womach, she refuses to pay for them even though the job has been completed on time. Womach clais that she is not liable because the contract was oral
If unique size, style and color of the window treatments make it improbable that HD can find another buyer, Womach is liable to HD
Example 20.15 Additional Terms SMT Marketing orders goods over the phone from BS Inc. which ships goods to SMT with an acknowledgment form (confirming the order). SMT accepts and pays for the goods.
The parties writings do not establish a contract, but there is no question that a contract exists. If a dispute arises over the terms, such as the extent of any warranties, UCC provides the governing rule
Example 22.14 When goods are in transit Arturo orders a truckload of lumber from timber products, to be shipped to Arturo 6 weeks later. Arturo, who has not paid timber products for a past shipment, promises to pay the debt immediately and to pay for current shipment as soon as it is received. After the lumber is shipped, a bankruptcy court judge notifies timber products that Arturo has filed a petition in bankruptcy and listed timber products as one of his creditors
if the goods are still in transit, timber products can stop the carrier from delivering the lumber to ortega
