Burk v. Emmick

Citation. 637 F.2d 1172 (8th Cir. 1980)

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Citation637 F.2d 1172 (8th Cir. 1980)

Brief Fact Summary.

Burk sued Emmick for breach of contract and fraud when checks returned in a transaction for cattle.

Synopsis of Rule of Law.

A seller can take back goods and seek damages under the Uniform Commercial Code if a cash buyer does not pay the contract price.

Points of Law - Legal Principles in this Case for Law Students.

In such a situation, as between the good faith purchaser and the unpaid seller, the former's claim is clearly superior.

View Full Point of Law

Emmick contracted to buy cattle from Burk. When Burk delivered the cattle to Emmick, Emmick submitted two checks to Burk as payment. When the checks returned, Burk took back the cattle and sold them to another party for less than the contract price. The trial court granted judgment to Burk and Emmick appealed.

Issue.

Whether a seller can take back goods and seek damages under the Uniform Commercial Code if a cash buyer does not pay the contract price?

Held.

Yes. The judgment of the trial court is affirmed. Burk was permitted to reclaim the cattle under UCC § 2-507 and seek damages under UCC § 2-703.

Discussion.

A seller can take back goods and seek damages under the Uniform Commercial Code if a cash buyer does not pay the contract price.UCC § 2-507 allows a seller to keep the goods if the buyer pays the purchase price. UCC § 2-703 permits a seller to resell the goods and recover damages for breach of contract.