A retailer ordered some inventory by phone from a manufacturer.The order was for 1,000 machines from the manufacturer's inventory at $300 each.The manufacturer sent the retailer a fax moments later detailing the order.The retailer looked at the fax and was satisfied that it stated the terms of the contract,but never responded in any way.When the goods were delivered on time a month later,the retailer refused to accept them,asserting that the contract was unenforceable.Which is true?

Question

Quizplus · Accepted Answer

The written confirmation rule under the UCC states that if one party sends a written confirmation of a contract and the other party does not object within a reasonable time, the confirmation satisfies the writing requirement of the Statute of Frauds. In this case, the manufacturer sent a fax detailing the order, which can be considered a written confirmation. The retailer did not object within a reasonable time, which implies an acceptance of the terms of the contract. Therefore, the contract is enforceable.

A Retailer Ordered Some Inventory by Phone from a Manufacturer