Question 1

Equipment Rental Corporation and Floodlights,Inc.,are parties to an oral agreement for a lease of goods with payments in excess of $10,000.They may satisfy the Statute of Frauds by

Accepted Answer

The Statute of Frauds requires contracts for the lease of goods with payments in excess of $10,000 to be in writing. While a handshake or a phone call may be indicative of an agreement, they do not satisfy the requirement of a writing. An e-mail, on the other hand, can qualify as a writing as it is a form of communication that can be printed and retained for future reference. Therefore, setting out the terms in an e-mail would satisfy the Statute of Frauds.

Question 2

Jackson owns an antiques store.He sells a grand piano to Fred for $5,000,a old jukebox to Sam for $499,an antebellum chest of drawers to Josephine for $659 and a gold ring to Wendy for $999.Which of Jackson's sales must be in writing to be enforceable?

Accepted Answer

The answer of Jackson owns an antiques store.He sells a...

Question 3

Gail enters into a contract with Hi-Price Appliances,Inc.In a suit be?tween the parties over payment under the contract,Gail claims that a certain clause is unconscionable.If the court agrees,it may

Accepted Answer

If the court agrees that a certain clause in the contract is unconscionable, it has the power to enforce the rest of the contract, limit the application of the disputed clause, or refuse to enforce the contract or the disputed clause. It is up to the court's discretion to determine the appropriate action.

Question 4

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or three weeks it will decide whether to accept.One week later,Clean faxes,and Dealer receives,notice that the offer is withdrawn.Dealer immediately phones Clean to accept the $150-per-unit offer.When Clean refuses to deliver at that price,Dealer files a suit.Clean asserts,first,that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 the...

Question 5

Tune Products,Inc.,offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Unlimited 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." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract,to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover? Explain.

Accepted Answer

The answer of Tune Products,Inc.,offers to sell to Unlimited Sales...

Question 6

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 con?tract.Brand may

Accepted Answer

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

Question 7

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 8

Raul agrees to ship to Ben one hundred ceil?ing fans for $5,000.Raul ini?tials his notes of the deal,which in?clude 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

Under the UCC's statute of frauds, contracts for the sale of goods priced at $500 or more require a writing that is signed by the party to be charged (in this case, Raul). Raul's initialed notes serve as a sufficient writing to satisfy the statute of frauds, making the contract enforceable against him. Ben's notes, while helpful as additional evidence, are not necessary for enforceability.

Question 9

Rita,the manager of the State University (SU) soccer team,orally agrees to lease a certain number of specially made SU banners from Top Banners,Inc.This lease is enforceable only if Top has made a substan?tial start on making the banners and

Accepted Answer

The answer of Rita,the manager of the State University (SU)...

Question 10

Great Grain Farms offers to sell Hearty Bakeries,Inc.,fifty bushels of wheat.Hearty's representative Milena responds,"We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Grain and Hearty

Accepted Answer

Milena's statement is a counteroffer, not an acceptance. By stating that she will only accept if the wheat is Grade A quality, she is proposing new terms that have not been agreed upon by both parties. Therefore, Great Grain can choose to accept, reject, or make a new offer in response to Milena's counteroffer.

Question 11

Timber Products,Inc.,and Walt,a consumer,enter into a contract for a sale of plywood.If the contract includes a clause that is perceived as grossly unfair to Walt,its enforcement may be challenged under the doc?trine of

Accepted Answer

The doctrine of unconscionability allows for the enforcement of a contract to be challenged if a clause is so unfair or one-sided that it would be unconscionable to enforce it. This may include situations where one party has significantly more bargaining power than the other or where the terms of the contract are excessively one-sided. In this scenario, if the clause in question is perceived as grossly unfair to Walt, he may be able to challenge it under the doctrine of unconscionability.

Question 12

Fresh Produce,Inc.,and Great Grocery Stores dispute the interpretation of an ambiguous phrase in their contract.In a suit between the parties to con?strue the contract,a court may accept evidence of

Accepted Answer

The answer of Fresh Produce,Inc.,and Great Grocery Stores dispute the...

Quiz 18: Introduction to Sales and Lease Contracts