Question

Roderick Cardwell owns Ticketworld, which sells tickets to entertainment and sporting events to be held at locations throughout the United States. Ticketworld's Massachusetts office sold tickets to an event in Connecticut to Mary Lou Lupovitch, a Connecticut resident, for 125$ per ticket, although each ticket had a fixed price of 32.50$. There was no aagreement that Ticketworld would bear the risk of loss until the tickets were delivered to a specific location. Ticketworld gave the tickets to a carrier in Massachusetts who delivered the tickets to Lupovitch in Connecticut. The state of Connecticut brouht action against Cardell in a Connecticut state court, charging part a violation of a state statute that prohibited the sale of a ticket for more than 3# over its fixed price. Cardwell contended in part that the statute did not apply because the sale of Lupovitch involved a shipment contract that was formed outside the state. Is Cardwell correct? How will the court rule? Why?

Answer 1

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The state court in Connecticut, where the case was brought, ruled that Cardwell had vio‐laid the law. The court ordered him to stop selling tickets in Connecticut for more than $3 above each ticket's fixed price, ordered $185 in restitution to Lupovitch, and appraised a $1,500 fine. Cardwell had made an appeal. The Connecticut Supreme Court reversed some decision of the lower court. The state supreme court kept the title to the transferred tickets, and a sale occurred when Ticketworld delivered the tickets to a Massachusetts carrier, rather than when the carrier delivered the tickets to Lupovitch in Connecticut. The court clarified that a sale takes place when title passes from seller to buyer, that title passes when the seller delivers the goods, and that, unless otherwise decided by the parties, delivery takes place at the place of shipping. The court underlined that Ticketworld's selling arrangement did not contain any clear promise to bear the risk of failure until the tickets were delivered. It made the contract a contract for shipment which was produced outside the state, and the state law did not apply. (The lower court also found Cardwell guilty of misrepresentation, which was the object of a different state statute with different requirements. A Ticketworld employee had told Lupovitch that the tickets were for seats directly in front of the stage. In fact, the seats were in a far inferior location. The state supreme court upheld this conviction, and others, and the penalties.)