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) None of the above.

Question

Quizplus · Accepted Answer

The example in option A shows a consistent pattern of behavior between Steven and Michelle over a period of time. This pattern of behavior and previous actions between parties is known as a course of dealing, which can be used to interpret a contract under the UCC. The fact that Steven fixes the sign without express consent and Michelle pays promptly creates an implied agreement that this is how business is conducted between them.

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