My question involves a consumer law issue in the State of: Missouri

Full disclosure, My motivation is to help educate a community on their rights when ordering specialized hardware they use to generate revenue.

So here's the scenario:

Consumer A (not me) goes to a web (Company B) site offering pre-order sales of specialize computer hardware they developing (this hardware is a means to earn money).

Consumer A decides to purchase during purchase is is clearly stated "Delivery Date is currently schedule for October" (2012).

Company B gets to October and pushes their deadline to January/February because of supply line and design issues.

Company B tells the customers about the delay.

Consumer A is reasonably frustrated.

A continuous series of delays (supply line problems, modifications to design, etc) causes Company B to continuously adjust delivery (as in "we're unfortunately thinking it'll be done in two weeks" again and again).

Sometime around May Company B begins to produce small quantities of product and begins to ramp up production.

Meanwhile, Customer A is growing more and more irate. He begins to complain on the community forums. Says he's getting tired of the "lies". Says he doesn't know if he's ever going to get his product.

It's quite irate, beyond just "This delay is pissing me off".

Company B grow weary of this. They send an email to Customer A stating "It has been relayed to me that you are unhappy with our company and I was asked to cancel your orders. If you would send me an address I will send your money back to you ASAP."

Customer A goes ballistic on the Companies community chat site, threatens legal action, posts about how the company has the worst customer relations he's ever seen, and starts an ad campaign on the community site linking all of his claims.

Customer A and some community members claim this is breach of implied contract under Missouri UCC code

So that's the scenario (tried to be brief but expressive). Here's what the community is fixated on:

400.2-711. (1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any goods involved, and with respect to the whole if the breach goes to the whole contract (section 400.2-612), the buyer may cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid

(a) "cover" and have damages under section 400.2-712 as to all the goods affected whether or not they have been identified to the contract; or

(b) recover damages for nondelivery as provided in this article (section 400.2-713).

(2) Where the seller fails to deliver or repudiates the buyer may also

(a) if the goods have been identified recover them as provided in this article (section 400.2-502); or

(b) in a proper case obtain specific performance or replevy the goods as provided in this article (section 400.2-716).

(3) On rightful rejection or justifiable revocation of acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care and custody and may hold such goods and resell them in like manner as an aggrieved seller (section 400.2-706).
So I hoping to help the community better understand consumer rights when purchasing hardware. Here are some of the questions I'd like to talk about:

  • Can the company just cancel an order that was paid for and waited on for 11 months?
  • Is this actually breach of implied contract or any other kind of contract?
  • Does "seller fails to make delivery or repudiates" apply to this? Why or Why not?
  • Does cancellation alleviate any future obligation of the company?
  • I'm pretty certain from my reading/understand, any past breach/fraud is not protected, but if cancellation isn't legal what does it mean to the company/customer?
  • Anthing anybody else might add to help me educate, would be greatly appreciated


Thanks
-- Monica