[Pet Products] Sonya, who has a successful pet products business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Troy, told her that she should carefully investigate the laws in those countries before she proceeded. Sonya responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Sonya also replied that any other country would have the same contract laws as exists in the U.S. She tells him that the Uniform Commercial Code (UCC) applies to all contracts and that as long as she has a written contract, she is covered. Sonya receives a contract from a Mexican company, signs it, drops it in the mail, and tells Troy the contract is complete.
-Is Sonya correct in saying that the UCC applies to all contracts and as long as she has a written contract, she is covered?
A) She is correct.
B) She is incorrect, because the UCC applies when the value of the contract is over $500.
C) She is incorrect, because the UCC only applies to the sale of goods.
D) She is incorrect. Even though the UCC applies to all contracts, the CISG applies to this situation.
E) She is incorrect.
Correct Answer:
Verified
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