Exam 20: The Formation of Sales and Lease Contracts

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

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

The UCC requires that the mirror image rule be followed for all acceptances.

In interpreting a commercial agreement, a court will assume that the usage of trade was taken into account when the agreement was phrased.

Coffee Roasters, Inc., sells whole bean and ground coffee to Delicioso Deli under an existing contract. When the cost of coffee beans increases, Delicioso agrees to a price increase, but later wants to cancel the contract. Delicioso may

The UCC requires a contract modification to be supported by new consideration.

Fact Pattern 20-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods. -Refer to Fact Pattern 20-1. Farmers Produce responds that it did not waive payment for spoiled goods in the parties' previous transaction. Farmers Produce is arguing that the court should take into account

Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato

Intangible property has conceptual existence and thus comes under Article 2.

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

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under

A firm offer by a merchant may be oral.

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

Sara and Tim enter into a contract for a sale of orchids. With respect to the specific contractual provisions set out in the UCC, these parties may

Under the UCC, parties to sales and lease contracts are free to establish whatever terms they wish.

Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Ed's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Ed's is a merchant by assessing whether