Question

18. Sam Spade sold Bart Black goods on credit for $1,000. Spade then assigned the account receivable to Arte Ashe. Black discovered that the goods were defective--and told Ashe they were worth only $300. Ashe demanded $1,000 from Black because, said he, he wasn't responsible for Spade's sale of defective goods. Could Ashe collect the $1,000?

When answering please answer in a legal environmental business perspective and be detailed.

Answer 1

Defective goods means goods which are not in proper condition may it be in terms of performance, design etc. Defective products may also cause injury to the person using it in some cases

For example, if a food item is defective it may cause health issues to the person having it.

The seller of product is the party liable for allowing the defective product reach to the customer.

Here, in the given scenario Ashe cannot collect $1000 from Black because customer is not liable for defective goods. Ashe can collect $ 300 given by customer and inform Sam that the products sold by him are defective and are valued only $300 by customer because the seller, Sam is responsible to bear the liability of defective goods.