Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 1

Jack Duran, president of Colorado Carpet Installation, Inc., began negotiations with Fred and Zuma Palermo for the sale and installation of carpeting, carpet padding, tile, and vinyl floor covering in their home. Duran drew up a written proposal that referred to Colorado Carpet as "the seller" and to the Palermos as "the customer." The proposal listed the quantity, unit cost, and total price of each item to be installed. The total price of the job was $4,777.75. Although labor was expressly included in this figure, Duran estimated the total labor cost at $926. Mrs. Palermo in writing accepted Duran's written proposal soon after he submitted it to her. After Colorado Carpet delivered the tile to he Palermo home, however, Mrs. Palermo had a disagreement with Colorado Carpet's tile man and arranged for another contractor to perform the job. Colorado Carpet brought an action against the Palermos for breach of contract. Does the Uniform Commercial Code apply to this contract?