Question 1

Under the second of two contracts with Citrus Orchard for deliveries of fruit, Distribution Center refuses to pay for fruit that arrives damaged. Citrus responds that the buyer did not waive payment for damaged goods in the parties' first contract. Citrus is arguing that the court should take into account

Accepted Answer

Course of dealing refers to the previous conduct between parties in their transactions, which can help interpret their current agreement. Since Citrus Orchard is referring to the terms and practices established in the first contract to argue about the obligations in the second contract, they are invoking the concept of course of dealing to suggest that the absence of a waiver in the first contract should influence the interpretation of the second contract's terms.

Question 2

Time Inc. offers to sell to Unlimited Sales Company one hundred digital watches at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 watches at $50 each. Must be delivered to our warehouse." Time does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Time answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Time. Can Unlimited recover? Explain.

Accepted Answer

The answer of Time Inc. offers to sell to Unlimited...

Question 3

Ric enters into written agreements with Sophie involving a sale of Timberline Motel, including the land, the building, and the furnishings. The UCC Statute of Frauds governs the sale of

Accepted Answer

The UCC Statute of Frauds specifically governs the sale of goods, which would include the furnishings priced at $500 or more. The sale of real estate (land and buildings) is not covered by the UCC but by other laws related to real estate transactions.

Question 4

Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient

Accepted Answer

Under the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN), an electronic record or signature can satisfy the statute of frauds requirement for contracts to be in writing and signed by the party against whom enforcement is sought. Therefore, if the e-mail from Bean Processor Inc. is signed (which can include an electronic signature or even the typed name of the sender in an email, depending on jurisdiction), it can be sufficient to form a contract.

Question 5

With respect to a contract for a sale of goods, when its express terms cannot be construed as reasonably consistent with the parties' course of performance and course of dealing, and the usage of trade, the UCC gives priority to

Accepted Answer

The Uniform Commercial Code (UCC) gives priority to express terms when they cannot be reasonably construed as consistent with the parties' course of performance, course of dealing, and the usage of trade. This is because express terms are the specific agreements the parties have explicitly stated in their contract.

Question 6

Clean Machines Company makes washing machines. Over the phone, Clean offers to sell Dealer 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. Dealer 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 7

Speedy Trucking Inc. and Trailer Rents LLC 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 Statute of Frauds requires certain contracts to be in writing to be enforceable. This includes contracts for the lease of goods with payments totaling more than $500. Setting out the terms in a memo satisfies this requirement by providing a written record of the agreement.

Question 8

Bagels Inc. and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is

Accepted Answer

A "baker's dozen" being thirteen instead of twelve is a usage of trade, which refers to a practice or method of dealing having such regularity of observance in a place, vocation, or trade that it justifies an expectation that it will be observed with respect to the transaction in question.

Question 9

Joel sells a violin to Key for $5,000, a cello to Leia for $400, and five music stands to Mica for $50. A writing is required to enforce the sale of

Accepted Answer

The Statute of Frauds requires a written agreement for the sale of goods priced at $500 or more. The violin, priced at $5,000, meets this criterion, necessitating a written contract for enforceability. The cello and music stands, priced below $500, do not require a written agreement under this rule.

Question 10

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to

Accepted Answer

The owner of the stable's response is a counteroffer, not an acceptance, because it changes the terms of the original offer. This means no contract is formed on the basis of the original offer or the counteroffer without further agreement.

Question 11

Under a contract with Assemble Inc. for the delivery of a shipment of TV sets, Buyers Store refuses to pay for sets with cracked cases. Assemble files a suit against Buyers, claiming that the defendant assumed the risk of damaged goods. The court may allow evidence of this term if it finds that the parties' contract is

Accepted Answer

The court may allow evidence of the term if it finds that the parties' contract is not fully integrated. This means the contract does not represent the complete and final agreement between the parties, allowing for additional terms or evidence to be considered.

Question 12

Under a contract with Fresh Farm LLC for a delivery of vegetables, Growers Mart refuses to pay for some of the produce. The buyer contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Mart is arguing that the court should take into account

Accepted Answer

Usage of trade refers to any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question. Growers Mart's argument that the court should consider the trade's customary practices regarding payment for spoiled produce aligns with the concept of "usage of trade."

Quiz 20: Sales and Lease Contracts