[Customer Uncertainty] Luke wanted baseball caps with the name of the firm of which he was president, ABC Corporation, emblazoned on the front. Emilia, a merchant in specialized goods, orally agreed with Luke that she would sell him 200 baseball caps at $5 each. No writing was ever made, although there were a number of witnesses to the conversation. After the caps were finished, but before they were shipped, Luke called to cancel the order because his firm had just announced a merger and would no longer be known as ABC Corporation. Emilia told him she would not cancel the contract because she had just finished the caps. Luke told Emilia that she should have been smarter and had him sign something because without a writing, she would not have a chance in court. Emilia is also having problems with other customers. A father who voluntarily coached a youth softball league in his community called and orally ordered 150 baseball caps at a cost of $4 to give out at a league banquet. He wanted a variety of caps with no name on them because players from different teams would be at the banquet. Emilia sent a confirmation letter to the coach and had the caps packed up and ready to go. Just before she shipped them, the coach called and told her that there was a big feud, the banquet was canceled, and that he was canceling the order. She believes that the coach should pay damages, especially because a big order was involved. Finally, Emilia has a merchant customer who orally ordered 500 plain T-shirts at a cost of $5 each, but has not picked them up and has refused to do so after several demands. Emilia wants to take the merchant customer to small claims court.
-Which of the following is correct regarding Luke's assertion that Emilia cannot recover the cost of the caps?
A) Luke is correct. Emilia cannot recover because she has nothing in writing.
B) Luke is incorrect because the cost of the caps is insufficient to come within the requirement of a writing under the UCC.
C) Luke is incorrect because Emilia has witnesses.
D) Luke is incorrect because Emilia had already made the caps and she cannot sell them to another buyer.
E) Luke is incorrect both because Emilia had already made the caps and also because she had witnesses.

Question

Quizplus · Accepted Answer

Luke is incorrect because under the Uniform Commercial Code (UCC), specifically Section 2-201(3)(c), a contract for the sale of goods for $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties. However, an exception to this rule is if the goods are specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business, and the seller has made a substantial beginning of their manufacture or commitments for their procurement. In this case, because Emilia had already made the caps specifically for Luke's firm with the firm's name on them, and these caps cannot be sold to another buyer, this exception applies, making Luke's assertion incorrect.

[Customer Uncertainty] Luke Wanted Baseball Caps with the Name of the Firm