Question 1

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under

Accepted Answer

The doctrine of unconscionability allows a court to refuse to enforce a contract that is so one-sided and oppressive that it would be unfair to enforce it. In this case, if the clause in the contract is perceived as grossly unfair to Holly, she may challenge its enforcement under the doctrine of unconscionability. The other choices are not relevant in this context. The mirror image rule relates to the acceptance of an offer, the principle of fair trade relates to international trade, and the predominant-factor test is used to determine which state's laws apply in a contract dispute.

Question 2

Fact Pattern 13-1
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
-Refer to Fact Pattern 13-1.Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account

Accepted Answer

Growers Market is arguing that the court should consider the usage of trade in determining whether or not they should be liable for payment for the spoiled produce. The usage of trade refers to the customs and practices commonly accepted within the trade or industry in which the parties are operating. The court could consider these customs and practices to determine whether payment for the spoiled produce is warranted.

Question 3

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

As this is an international sale of goods, the United Nations Convention on Contracts for the International Sale of Goods (CISG) applies, which has been ratified by both Mexico and the United States. Therefore, the contract between Toro, S.A. and United Fencing Company would be governed by the CISG.

Question 4

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 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

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 Jack is selling both the grand piano and the gold ring, it is necessary to have a writing that enforces the sale of both items to both buyers. Option A would only cover the sale of the piano and not address the sale of the ring. Option D would only cover the sale of the ring, leaving the piano uninsured. Option C would not enforce the sale of either item. Therefore, the best choice is B, to enforce the sale of both the piano and the gold ring.

Question 7

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 offer for 100 I-appliances at $50 each. Must be delivered to our warehouse." 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...

Question 8

Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of the deal, which include the terms, and files the notes in his office. Ben initials his own notes of the deal, which include the terms, and files the notes in his office. Raul fails to ship the fans. Against Raul, as a contract, the deal is​

Accepted Answer

Raul's initialed notes are considered a sufficient writing under the UCC's statute of frauds. The agreement between Raul and Ben meets the requirements of the statute of frauds because it involves the sale of goods over $500 and Raul's notes include the quantity and price. Therefore, the contract is enforceable, and Ben can sue Raul for breach of contract.

Question 9

Fact Pattern 13-1
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
-Refer to Fact Pattern 13-1.Farmers Produce responds that it did not waive payment for spoiled goods in the parties' previous transaction. Farmers Produce is arguing that the court should take into account

Accepted Answer

Farmers Produce is arguing that the court should take into account the course of dealing, which refers to the parties' previous transactions and the practices they have established within their business relationship. This can help determine whether the parties intended to include a term regarding payment for spoiled goods in their contract.

Question 10

Fact Pattern 13-1
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
-Refer to Fact Pattern 13-1.Farmers Produce files a suit against Growers Market, claiming that the buyer assumed the risk of the spoilage of the unsold goods. The court may allow evidence of this term if it finds that the parties' contract is

Accepted Answer

If the contract is not fully integrated, evidence of additional terms can be introduced to clarify any unclear issues, such as the allocation of risk with regards to unsold goods that spoil.

Question 11

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Accepted Answer

The best way to satisfy the Statute of Frauds in this situation is to have the terms of the agreement set out in a memo or written contract. An oral agreement for a lease of more than one year and for a total payment over $500 is not enforceable under the Statute of Frauds unless it is in writing and signed by the parties to be charged. While mutual agreement not to commit fraud is important, it does not satisfy the Statute of Frauds. Repeating the terms in a phone call or shaking hands on the deal does not provide sufficient evidence of the agreement's terms.

Question 12

Coffee Roasters, Inc., sells whole bean and ground coffee to Delicioso Deli under an existing contract. When the cost of coffee beans increases, Delicioso agrees to a price increase, but later wants to cancel the contract. Delicioso may

Accepted Answer

Delicioso may not cancel the contract because they have already agreed to a price increase under the existing contract, indicating acceptance of the modified terms. Contracts, once agreed upon and modified by mutual consent, are binding unless provisions within the contract allow for cancellation under specific conditions, which are not indicated in this scenario.

Quiz 13: The Formation of Sales and Lease Contracts

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under

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

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

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Coffee Roasters, Inc., sells whole bean and ground coffee to Delicioso Deli under an existing contract. When the cost of coffee beans increases, Delicioso agrees to a price increase, but later wants to cancel the contract. Delicioso may