Exam 16: Formation of Sales, Lease, and E-Contracts

If a party,against whom enforcement is sought,admits to an oral contract in court proceedings,then the Statute of Frauds requirement is waived and the oral contract can be enforced.

Nicole agrees to purchase 400 cell phones from Mike,for $1,000.Mike agrees to deliver the cell phones by May 1.On April 15,Nicole realizes that she will be unable to resell the cell phones without protective covers.Nicole calls Mike and asks him to include 400 cell phone covers in her order.Surprisingly,Mike agrees to ship 400 cell phones and covers for a total amount of $1,000.Nicole pays Mike the $1,000.Which of the following is true?

What is the definition of "goods" under Article 2 of the UCC?

The buyer and seller enter into a sales contract for the sale of t-shirts.The contract provides that the 500 t-shirts will be an assortment of sizes and colors.The contract does not specify exactly what that assortment will be.The seller sends the buyer an assortment of various colors and sizes.Does the seller have the right to choose the assortment?

Where a contract for the sale of goods does not mention the place of delivery for the goods,which of the following is true?

Lewis and Reggie enter into an oral agreement.Reggie agrees to sell Lewis $400 worth basketball equipment.Two days later,Lewis calls Reggie and orally requests $1,000 worth of basketball equipment instead of $400.Reggie agrees and attempts to deliver the $1,000 worth of basketball equipment to Lewis.Lewis refuses to accept the equipment and pay,so Reggie sues,who wins and why?

In a contract for the sale of goods,if the seller does not have a place of business and the contract does not mention delivery in any way,delivery is to be made at the seller's residence.

If,in accepting an offer a non-merchant seller includes additional terms,those additional terms become part of the contract.

What was the holding in Brandt v.Boston Scientific?

A lease is a contract that transfers the right to the possession and use of named goods for a set term in return for certain consideration.

Under the UCC,if a merchant seller gives an assurance that an offer will be held open for a certain amount of time,but sells the goods prior to that date,then the buyer can sue the seller for breach of contract.

As with contracts under common law,the UCC requires that a contract modification be supported by consideration.

What is meant by the "battle of the forms",and why does the UCC need to address the issue of the "battle of the forms" rather than simply retaining the common law mirror image rule?

The written confirmation rule is a relaxation of the requirements of the mirror-image rule.

A grocery store mails to a produce importer an offer to purchase for prompt shipment 50,000 pounds of bananas.The importer immediately ships the 50,000 pounds of bananas by truck to the buyer but does not send notification to the buyer that it is making the shipment.Which of the following is true?

Mary runs a clothing store near a college campus.In the winter,Mary was preparing to order some T-shirts and shorts for the upcoming summer.She prepared an order on her stationary for "1,000 T-shirts of assorted sizes,S,M,L and XL,800 in royal blue,the other 200 in assorted colors." For the shorts her order read,"1,000 pairs of shorts,assorted sizes,approximately equal quantities,of white,black,khaki,and olive." She sent the order to the clothing maker,and about a week later received an order confirmation on their sales order form.She glanced at it and the wording for her order was the exact same as she had sent in.When she received the merchandise a month later,there were only 150 royal blue shirts,and the others were various assorted colors.There were only 50 pairs of white shorts,with the other 950 approximately equal quantities of the other three colors.Mary looked back at the sales order and noticed a provision in the fine print that the clothing maker could substitute different colors for what was ordered.Mary claims that the clothing maker has breached the agreement.The different colors shouldn't affect the sales of the shorts,but she ordered the royal blue shirts because that is the local university's predominant school color.Discuss Mary's situation.

A UCC sale occurs when possession of property is transferred from one party to another.

Which of the following contracts is not considered a sale?

A letter of credit guarantees to the seller,that the bank will pay for the goods if the buyer fails to do so.

Letters of credit are important instruments in international trade.