Question 1

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

Accepted Answer

Since the sales of both the grand piano and the gold ring are mentioned in the same sentence, it is safe to assume that they are being sold together. Therefore, a writing is required to enforce the sale of both the piano and the gold ring.

Question 2

Development Corporation and Equipment Rental,Inc.,are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Accepted Answer

The Statute of Frauds requires that contracts for the lease of goods valued over $10,000 be in writing. Therefore, to satisfy the statute of frauds, the parties must set out the terms in a memo or contract. The other options, such as agreeing not to commit fraud, repeating terms in a phone call, or shaking hands on the deal, do not satisfy the statute of frauds requirement for a written agreement.

Question 3

Bert's Bagels & Nosh,Inc.,and other bakeries refer to a "baker's dozen" as con-sisting of a collection of thirteen baked goods. This is

Accepted Answer

A "baker's dozen" is a common usage of trade in the baking industry to refer to a collection of thirteen baked goods instead of the usual twelve. This tradition is believed to have originated from bakers in medieval England who would add an extra roll or loaf to an order to avoid being accused of short-changing their customers. As such, it has become a common practice in the industry and is recognized as a usage of trade.

Question 4

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Accepted Answer

The contract is enforceable to the extent of the partial payment made by Jenene. In general, contracts for the sale of goods over $500 must be in writing to be enforceable under the Statute of Frauds. However, since Jenene has made a partial payment and there is evidence of an agreement for the sale of specific goods, this creates an exception and the contract is enforceable to the extent of the partial payment made.

Question 5

Clean Machines Company makes washing machines. Over the phone,Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later,Clean faxes,and Dealer receives,notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price,Dealer files a suit. Clean asserts,first,that there is no contract and,second,that if there is a contract,it is unenforceable. Discuss Clean's assertions.

Accepted Answer

The answer of Clean Machines Company makes washing machines. Over...

Question 6

Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments,Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
-Refer to Fact Pattern 20-1. Olga files a suit against Prairie States,claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it. Olga is asserting

Accepted Answer

Olga is asserting the doctrine of unconscionability, which refers to a situation where a contract is so one-sided and unfair that it would be unjust to enforce it. The fact that Olga has paid more than twice the price of a similar refrigerator after thirty-six months of payments, and still has eighteen payments due, suggests that the contract may be unconscionable.

Question 7

Toro,S.A.,which is based in Mexico,enters into a contract for the purchase of portable livestock fencing from United Fencing Company,which is based in the United States. This contract is governed by

Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty governing international commercial transactions, including the sale of goods. The CISG applies to contracts for the sale of goods between parties from different countries, including Mexico and the United States. Therefore, the CISG would govern the contract between Toro, S.A. and United Fencing Company.

Question 8

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract. When textile costs increase,Brand agrees to a price increase,but later wants to cancel the contract. Brand may

Accepted Answer

The answer of Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under...

Question 9

Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments,Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
-Refer to Fact Pattern 20-1. Under the UCC,the court can evaluate the contract to determine whether it was unreasonably unfair and one sided

Accepted Answer

The UCC allows courts to evaluate contracts for unconscionability, which means that they are so one-sided that they are unfair to one of the parties. This evaluation can take place at the time the contract was made, which is before the payments began. Therefore, the court can determine whether the contract was unreasonably unfair and one-sided at the time it was made.

Question 10

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

Accepted Answer

Since both the piano and the gold ring are part of the sale, a writing is required to enforce the sale of both items. A separate writing would be needed for the sale of the piano only or the gold ring only, but not for neither.

Question 11

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel,including the land,building,furnishings,shares of stock in Suite Dreams Company,and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs

Accepted Answer

The UCC Statute of Frauds specifically applies to the sale of goods, and furnishings priced at $500 or more would fall under this category as goods. The UCC does not apply to real estate transactions or services, such as the sale of land, buildings, or marketing services.

Question 12

Key of G Products,Inc.,offers to sell to Harmony Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates. Harmony replies with a signed purchase order that reads,"Accept your of-fer for 100 I-appliances at $50 each. Must be delivered to our ware-house." Key of G does not respond or deliver the goods. Harmony files a suit for breach of contract,to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G. Can Harmony recover? Explain.

Accepted Answer

The answer of Key of G Products,Inc.,offers to sell to...

Quiz 20: The Formation of Sales and Lease Contracts

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

Development Corporation and Equipment Rental,Inc.,are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Bert's Bagels & Nosh,Inc.,and other bakeries refer to a "baker's dozen" as con-sisting of a collection of thirteen baked goods. This is

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Toro,S.A.,which is based in Mexico,enters into a contract for the purchase of portable livestock fencing from United Fencing Company,which is based in the United States. This contract is governed by

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract. When textile costs increase,Brand agrees to a price increase,but later wants to cancel the contract. Brand may

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of