Question

Roderick Cardwell owns Trafficworld, which sells traffic lights (a sale of goods, according to the court) throughout the United States. Trafficworld’s Massachusetts office sold traffic lights to Mary Lou Lupovitch, a Connecticut resident, for $1250. There was no agreement as to risk of loss. Trafficworld gave the traffic lights to a carrier in Massachusetts who delivered the light to Lupovitch in Connecticut. The state of Connecticut brought an action against Cardwell in a Connecticut state court, charging in part a violation of a state statute that prohibited the sale of traffic lights to private owners. Cardwell contended in part that the statute did not apply because the sale to Lupovitch involved a shipment contract that was formed outside the state. Is Cardwell correct? How will the court rule? Why?

Answer 1

No Cardwell is not correct. The court will rule against Cardwell.

This is because even though the agreement was made outside the state (it was made in Massachusetts and not in Connecticut), it does not absolve any party of the laws that are applied in the state where the final product will be used. The same applies in international laws also. Can someone buying something for use in US, violate US law just because he/she makes agreement in Singapore? No. Similarly, the law where the final product/service will be used must be kept in mind. The state of Connecticut does not allow sale and use of traffic lights by individual owners. Cardwell did violate the state statute and is trying to use a loophole of making an agreement in another state to not carry the punishment. The court will rule against Cardwell.

This is very similar to an actual 1998 case of State Vs Cardwell, except that case concerned ticket scalping.