An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:
A) Steven and Michelle have been involved in contracts together for over 5 years. Steven maintains the sign for Michelle's restaurant. Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle. Michelle has always paid the bill promptly.
B) Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country. In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors.
C) Bob sees an ad in the local paper for heritage flower seeds sold by Mel. He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as possible but does not inquire as to price. Mel sends him the seeds and the invoice.
D) All of these are examples of "course of dealing."

Question

Quizplus · Accepted Answer

The concept of "course of dealing" refers to a pattern of conduct between parties to a contract that demonstrates their common understanding of how the contract's terms are to be applied. In choice A, Steven and Michelle's ongoing relationship, where Steven repairs the sign without express consent and Michelle pays without dispute, exemplifies this concept by showing their established pattern of behavior and mutual expectations.

An Example of the "Course of Dealing" Concept That Courts