Exam 11: Sales and Lease Contracts

Talk Talk, Inc., offers to buy from Voice Media Corporation (VMC) 1,000 smartphones. Without notifying Talk Talk, VMC timely ships phones of a different quality. With respect to the offer and a possible contract, this shipment is an acceptance and​

Spuds Corporation buys from Tater Farms, Inc., potatoes that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the harvest to Tasty Foods Restaurants, but they have not yet entered into a contract. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

In a destination contract, the seller is required or authorized to ship goods by carrier.

Olivia contracts to buy a refrigerator from a Prairie State Appliance store with the price to be paid in monthly installments. Later, Olivia files a suit against Prairie State, claiming that their contract is so unfair and one-sided that it would be unreasonable to enforce it. Olivia is asserting​

A lessor is a party who acquires a right to the possession and use of goods under a lease.

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is​

If a sale involves crops that are to be harvested within twelve months, identification takes place when the crops are harvested.

Red's Roofing buys asphalt tiles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles's warehouse" via Tristate Trucking Corporation. The tiles are lost in transit. The loss is suffered by

Under the UCC, an offeree can accept an offer to buy goods by a prompt shipment of conforming goods.

Refined Grains, Inc., agrees to sell to Sunny Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at​

When no delivery terms are specified in a contract for a sale of goods, the contract will fail for indefiniteness.

In contracts involving a sale of unborn animals to be born within twelve months, identification takes place when the animals are conceived.

According to the UCC, one open term will cause a sales contract to fail for indefiniteness.

To be characterized as a "good" under the UCC, an item of property must be movable and tangible.

Bram buys a bulldozer from Construction Equipment Corporation, which he leases to Earth Movers, Inc. In this situation, the lessee is​

Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via Go Back, Inc. During the return, the tablets are lost. The loss is suffered by​

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jiffy Discount Stores and other retailers. Household will have an insurable interest in the vacuums as long as​

Josefina owns a condominium that she leases to Katrina. Josefina gives her daughter Lucia $450 on her sixteenth birthday. Josefina sells her car to her neighbor Maria for $1,500. UCC Article 2 covers​

Swiftline Trucking, Inc., and Trailer Rents Corporation 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​

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