Chapter 13 - Formation of Sales and Lease Contracts
Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is
a merchant's firm offer
Manufacturing Corporation orders twelve safety videos from Productions, Inc., which delivers the videos. This is most likely
a sale of goods.
Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between
all of the buyers and sellers.
Coffee Roasters, Inc., sells whole bean and ground coffee to Delicioso Deli under an existing contract. When the cost of coffee beans increases, Delicioso agrees to a price increase, but later wants to cancel the contract. Delicioso may
not cancel the contract
Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by
setting out the terms in a memo.
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs
the sale of the goods
A course of performance is the conduct that occurs under the terms of a particular agreement
TRUE
A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.
TRUE
Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.
TRUE
Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.
TRUE
Talk, Inc., offers to buy from Ultra Corporation 1,000 smartphones. Without notifying Talk, Ultra timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is an acceptance and
a breach
A ccording to the UCC, one open term will cause a sales contract to fail for indefiniteness.
FALSE
Goods associated with real estate never fall within the scope of UCC Article 2.
FALSE
Intangible property has conceptual existence and thus comes under Article 2.
FALSE
Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.
FALSE
Great Harvest Farms offers to sell Hearty Bakeries, Inc., fifty bushels of wheat. Hearty's representative Ilene responds, "We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Harvest and Hearty Bakeries
Ilene's statement is not an acceptance
Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is
a sale
Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato
may treat the offer as having lapsed
Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under
the doctrine of unconscionability.
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.Refer to Fact Pattern 13-1. Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account
the usage of trade
