Legal Question in Business Law in California
What rights does a business have when purchasing office equipment? If the product was used and we thought we were purchasing new equipment, can we refuse the sale even if paper work has been signed?
3 Answers from Attorneys
Obviously, any misrepresentation by the Seller would undermine the validity of the agreement. Keep in mind the the initial "burden of production" falls on you as the buyer supporting your belief that fraud or misrepresentation by the seller occured...any questions?
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It depends on what you signed and what representations were or were not made to you. Without more facts it is impossible to say what rights you have. Simple unilateral mistake on your part will not support recision of a sale of goods.
My analysis does not require any misrepresentation or mistake allegations. The answer to your question is that the Commercial Code contains a so-called "perfect tender rule" which requires that the goods furnished on a contract conform exactly to the sample, catalog, or contract description. See section 2601, or look up UCC perfect tender rule on Google. The buyer may reject the entire lot if the goods in any way fail to conform to the contract.
This assumes that a reasonable, intelligent and disinterested person reading the contract would conclude that it was for new goods, not used goods, and that the inspection and rejection were done in a reasonably timely fashion.
Several other sections of the Commercial Code also govern the situation, including laws relating to timely inspection, the fact that the seller expressly warrants that the goods will conform to the contract, etc., and the buyer's duties after rejecting the nonconforming goods.
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