Chapter 17 Law Final Study Guide
Cam enters into a contract with Tractors & Lifts Lease Company for a two-year lease of a backhoe. This contract is subject to
Article 2A of the UCC
Jamie is redoing his kitchen and decides he needs a floor sander to complete the job. Jamie tells Rachel, his neighbor, that he needs a floor sander. Rachel tells Jamie to call Home Repair Rentals, Inc. Home Repair Rentals leases Jamie a floor sander. In this transaction the lessor is
Home Repair Rentals
Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted
a quantity term.
Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job safety DVDs from Plum Productions, Inc., which delivers the disks to OMC's plant. This is most likely
a sale of goods.
Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between
all buyers and sellers.
Canyon Creek Corporation is a Delaware-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in,
all of the states, in whole or in part.
TalkTalk, Inc., offers to buy from Voice Media Corporation (VMC) 100,000 smartphones. Without notifying TalkTalk, VMC timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is
an acceptance and a breach.
Nature's Products, Inc., sends its standard order form to Interbusiness Distribution Corporation (IDC) to evidence a sale of packing materials. IDC responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless
any of the choices.
Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. Under the UCC, the court can evaluate the contract to determine whether it was unreasonably unfair and one sided
at the time it was made
Precise Engineering, P.C., is a California-based firm that does business with clients throughout North America. Precise Engineering plans and executes construction projects, and buys and sells developed and undeveloped land, and related equipment and supplies. Precise Engineering has had to confront work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for
commercial transactions for the sale of and payment for goods.
Fresh Produce, Inc., and Great Grocery Stores dispute the interpretation of an ambiguous phrase in their contract. In a suit between the parties to construe the contract, a court may accept evidence of
consistent additional terms only.
Gail enters into a contract with Hi-Price Appliances, Inc. In a suit between the parties over payment under the contract, Gail claims that a certain clause is unconscionable. If the court agrees, it may
enforce, limit, or refuse to enforce the contract or the disputed clause.
Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of the deal, which include the terms, and files the notes in his office. Ben initials his own notes of the deal, which include the terms, and files the notes in his office. Raul fails to ship the fans. Against Raul, as a contract, the deal is
enforceable, because Raul's initialed notes are a sufficient writing.
FlavorBean Coffee Company agrees to buy an unspecified quantity of coffee beans from Global AgriCorp. Global breaches the contract. In FlavorBean's suit to obtain relief, the court will most likely
have no basis for determining a remedy.
In a dispute over a sale involving a restored 1937 Ford Roadster, Garth argues that for the purpose of the sale, Hoyt's Pawn Shop, where Garth bought the auto, is a merchant. A court may determine whether Hoyt's is a merchant by assessing whether
it holds itself out by occupation as having knowledge or skill unique to the auto in the transaction.
Mountaineer Sales, Inc., is the offeror and Camping Goods Corporation is the offeree under a unilateral sales contract in which Forest Recreation Products Company is also interested. Mountaineer is not notified of Camping's performance within a reasonable time. Mountaineer
may treat the offer as having lapsed
Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like to accept. Under the "mirror image rule" relating to offer and acceptance, an acceptance
must include only those terms and conditions contained in the offer.
Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing contract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the contract. Brand may
not cancel the contract.
Community Construction Corporation offers to buy from Solid Cement Company a certain quantity of cement for a certain price. Solid can accept the offer by
promising to ship or promptly shipping the cement.
Equipment Rental Corporation and Floodlights, Inc., are parties to an oral agreement for a lease of goods with payments in excess of $10,000. They may satisfy the Statute of Frauds by
setting out the terms in an e-mail
Danko sells new and used sports equipment to persons who come into his store, Eyes on the Prize. One afternoon, Danko sells a used display shelf to Felipe. At a garage sale at his home, Danko sells a used flat-screen TV to Faye. Under the UCC, Danko is a merchant of
sports equipment only
Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from United Fencing Company, which is based in the United States. This contract is governed by
the United Nations Convention on Contracts for the International Sale of Goods.
Rita, the manager of the State University (SU) soccer team, orally agrees to lease a certain number of specially made SU banners from Top Banners, Inc. This lease is enforceable only if Top has made a substantial start on making the banners and
the banners are not suitable for others in the course of Top's business.
Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. Olga files a suit against Prairie States, claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it. Olga is asserting
the doctrine of unconscionability.
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs
the sale of the furnishings priced at $500 or more.
Over the course of a year, Discount Market Company sells goods from its inventory and also sells one of its warehouses. In exchange, Discount receives checks, which Discount uses to repay a loan from Evermore Credit Inc. Article 2 of the UCC governs
the sale of the goods.
Bert's Bagels & Nosh, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of
usage of trade
The UCC requires that the mirror image rule be followed for all acceptances.
F
The terms of a fully integrated contract can be contradicted by evidence of any prior agreements.
F
Under the UCC, a contract for a sale of goods that does not include the quantity will not fail for indefiniteness.
F
Under the UCC, a firm offer for a sale or lease of goods made by a merchant without consideration can be revoked at any time before acceptance.
F
Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open.
F
Under the UCC, parties to sales and lease contracts are not free to establish whatever terms they wish.
F
When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy.
F
Under the UCC, if a contract is unilateral, the offeror must be notified of the of-feree's performance.
T
Under the UCC, prompt shipment of goods is considered an acceptance of an offer to buy the goods.
T
Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.
T
Jackson owns an antiques store. He sells a grand piano to Fred for $5,000, a old jukebox to Sam for $499, an antebellum chest of drawers to Josephine for $659 and a gold ring to Wendy for $999. Which of Jackson's sales must be in writing to be enforceable?
The grand piano, the chest of drawers and the gold ring only
Marine Expeditions, Inc., pays Nate's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC, this is
a lease.
Rice River Farms offers to sell Sensei Sushi Restaurants, Inc., five hundred bushels of rice. Sensei responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." This statement is
a counteroffer.
A firm offer by a merchant may be oral.
F
All oral contracts are enforceable under the UCC
F
Article 2 of the UCC covers any transaction that creates a lease of goods.
F
For an item to be characterized as a "good" under the UCC, it must be intangible.
F
If there is no definite period stated, a firm offer by a merchant is irrevocable without the necessity of consideration for up to six months.
F
Real estate transactions are always governed by Article 2 of the UCC.
F
Dan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer, sells Thelma his collection of seashells. Philip, a CEO of a successful company, sells George his pet parakeet. Judy, an expert horse trainer, sells Bob a horse. Which person would be considered a merchant under the UCC?
Judy
Refined Grains, Inc., agrees to sell to Sunny Breakfast Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at
Refined's place of business.
Peter, an agent for Zippy Cars, Inc., writes a letter to Cassandra on March 1 stating that he will sell her a 2011 Suburu Outback for $20,000 between March 1 and April 30. Peter's letter to Cassandra is
a firm offer
A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.
T
A course of performance is the conduct that occurs under the terms of a particular agreement.
T
A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.
T
A lessor is a party who transfers the right to the possession and use of goods under a lease.
T
A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.
T
An unconscionable contract is one that is so unfair and one sided that it would be unreasonable to enforce it.
T
Article 2 of the UCC sets forth the requirements for sales contracts and Article 2A covers similar issues for lease contracts.
T
Certain provisions of UCC Article 2A apply only to consumer leases.
T
Even if a contract in which goods and services are mixed is primarily a goods contract, any dispute over the services portion will not be decided under the UCC.
T
Generally, acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.
T
If a nonmerchant-seller's offer expressly conditions acceptance on a nonmerchant-buyer's agreement to the terms of the offer, the buyer's positive response is an acceptance even if it contains additional terms.
T
If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.
T
In interpreting a commercial agreement, a court will assume that the usage of trade was taken into account when the agreement was phrased.
T
Requirements contracts are common in the business world and normally are enforceable.
T
The UCC imposes some different rules on merchants.
T
The UCC views the entire commercial transaction for the sale and payment for goods as a single legal occurrence.
T
Under the UCC, a sale is the passing of title from a seller to a buyer for a price.
T
Under the UCC, an agreement modifying a contract needs no consideration to be binding.
T
Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.
T
Quality Metals Company and Superior Fabrication, Inc., enter into a contract under which Quality Metals agrees to deliver a certain quantity of sheet metal to Superior Fabrication each month. The contract does not include a price term. In a suit between the parties over the price, a court will
determine a reasonable price.
Roy's Chick'n Shack orders chicken from Standard Food Supplier, but Standard does not deliver. Roy's will probably be unable to enforce the agreement if the parties
did not specify a quantity term.