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Statute of Frauds- St. Charles Cable TV

Business Law1. Statute of Frauds- St. Charles Cable TV (St. Charles) was building a new cable television system in Louisiana. It contacted Eagle Comtronics, Inc. (Eagle), by phone and began negotiating to buy descrambler units for its cable system. These units would allow St. Charles’s customers to receive the programs they had paid for. Although no written contract was ever signed, St. Charles ordered several thousand descramblers. The descramblers were shipped to St. Charles, along with a sales acknowledgment form. St. Charles made partial payment for the descramblers before discovering that some of the units were defective. Eagle accepted a return of the defective scramblers. St. Charles then attempted to return all the descramblers, asking that they be replaced by a newer model. When Eagle refused to replace all the old descramblers, St. Charles stopped paying Eagle. Eagle sued St. Charles, claiming that no valid contract existed between the parties. Is there a valid sales contract? St. Charles Cable TV v. Eagle Comtronics, Inc., 687 F.Supp. 820, Web 1988 U.S. Dist. Lexis 4566 (United States District Court for the Southern District of New York)2. Right to Cure- Connie R. Grady purchased a new Chevrolet Chevette from Al Thompson Chevrolet (Thompson). Grady gave Thompson a down payment on the car and financed the remainder of the purchase price through General Motors Acceptance Corporation (GMAC). Grady picked up the Chevette. The next day, the car broke down and had to be towed back to Thompson. Grady picked up the repaired car one day later. The car’s performance was still unsatisfactory in that the engine was hard to start, the transmission slipped, and the brakes had to be pushed to the floor to function. Two weeks later, Grady again returned the Chevette for servicing. When she picked up the car that evening, the engine started, but the engine and brake warning lights came on. This pattern of malfunction and repair continued for another two months. Grady wrote a letter to Thompson, revoking the sale. Thompson repossessed the Chevette. GMAC sued Grady to recover its money. Grady sued Thompson to recover her down payment. Thompson claimed that Grady’s suit was barred because the company was not given adequate opportunity to cure. Who wins? General Motors Acceptance Corp. v. Grady, 27 OhioApp.3d 321, 501 N.E.2d 68, Web 1985 OhioApp. Lexis 10353 (Court of Appeals of Ohio)

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