A retailer ordered some inventory by phone from a manufacturer.The order was for 1,000 machines from the manufacturer's inventory at $300 each.Moments later,the manufacturer sent a fax to the retailer detailing the order.The retailer looked at the fax and was satisfied that it stated the terms of the contract,but never responded in any way.When the goods were delivered on time a month later,the retailer refused to accept them,asserting that the contract was unenforceable.Which is true?
A) No writing is needed because of one of the exceptions to the statute of frauds.
B) The contract is unenforceable because the retailer has not signed a writing.
C) The contract is enforceable because it would be unconscionable to not enforce it.
D) The contract is enforceable under the written confirmation rule.
E) Because the fax was not responded to, this was an accommodation shipment.

Question

Quizplus · Accepted Answer

The contract is enforceable under the written confirmation rule. The fax sent by the manufacturer can be considered a written confirmation of the order, which satisfies the requirements of the statute of frauds. The retailer's failure to respond to the fax does not invalidate the contract.

A Retailer Ordered Some Inventory by Phone from a Manufacturer