Legal Question in Business Law in California

Consumer's duty to pay contractor/retailer for defective goods

I purchased carpet for $4,000.00 from Carpet Store. The carpet was manufactured by Carpet Mill. Carpet Store installed the carpet. The carpet contains a manufacturing defect. I still owe Carpet Store $2,000.00. Carpet Mill has only agreed to replace the carpet that is connected to the defective part, not the carpet in the family room which is separated from the rest of the house by a kitchen. For that reason I am in a dispute with Carpet Mill. I want all of the carpet replaced by Carpet Mill. Now Carpet Store wants the $2,000.00, saying that they have committed no wrongdoing, they should be paid and my remedy is against Carpet Mill. Do I have to pay Carpet Store (the retailer and contractor)or can I hold the money until my dispute with Carpet Mill is settled?


Asked on 9/20/02, 4:49 pm

2 Answers from Attorneys

Ken Koenen Koenen & Tokunaga, P.C.

Re: Consumer's duty to pay contractor/retailer for defective goods

They both have responsibilities. They are both involved in what is called the "Flow of Commerce." Tell one to put the pressure on the other.

On the other hand, if the carpet in one room is not defective, and they are not seemed together, and are not that old, you may be being unreasonable in your request for both sections to be changed.

That's one for the judge.

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Answered on 9/20/02, 5:06 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Consumer's duty to pay contractor/retailer for defective goods

I question the previous answer. The stream of commerce concept applies to tort liability for personal injuries stemming from product defects.

Your issues are contract issues. Different bodies of law may apply depending upon whether your contract was predominantly a purchase of goods or services. If neither the cost of the carpet itself nor the cost of installation is clearly dominant, both bodies of law may apply.

To the extent this is a purchase of goods, the Uniform Commercial Code applies. The UCC has a so-called 'perfect tender' rule which requires that goods supplied conform exactly to the contract or to samples furnished, and if they don't, the buyer may reject them without obligation. However, this right must be exercised at delivery or, in the case of hidden defects, promptly upon their discovery or when with reasonable diligence they should have been noticed. See California Commercial Code sections 2601-2608, especially 2601 and 2606. Also note 2612.

Whether you could reject all the carpet or would be obliged to take the portion that conformed to specifications depends upon the severability of the contract. Since carpet colors can vary from lot to lot, I would argue that a buyer in your position could reject the entire shipment.

If the cost of installation was significant, and quoted separately, you may have to pay that. Service contracts are not governed by the UCC, but rather by traditional contract-law concepts (common law) and a few scattered statutes.

If you did not catch the blemish at the earliest opportunity, you may have to rely on whatever written warranty was provided by the seller or manufacturer.

These are only a few of the issues that could come up if the matter went to litigation. It is by no means certain that you would win. Much would depend upon your diligence in inspecting and complaining. Your best bet is to negotiate a realistic settlement with the store.

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Answered on 9/20/02, 6:00 pm


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