Exam 20: The Formation of Sales and Lease Contracts

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer. Article 2 of the UCC applies to the sales transactions between

Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments,Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. -Refer to Fact Pattern 20-1. Under the UCC,the court can evaluate the contract to determine whether it was unreasonably unfair and one sided

Under the UCC,an offeror must be notified within a reasonable time that the offeree has accepted.

For an item to be characterized as a "good" under the UCC,it must be intangible.

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract. When textile costs increase,Brand agrees to a price increase,but later wants to cancel the contract. Brand may

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

The UCC imposes some different rules on merchants.

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.

Over the course of a year,Retail Marketers,Inc.,sells goods from its inventory and one of its warehouses. In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

Development Corporation and Equipment Rental,Inc.,are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer. In contrast to standards that apply to consumers,the UCC imposes on merchants

Bert's Bagels & Nosh,Inc.,and other bakeries refer to a "baker's dozen" as con-sisting of a collection of thirteen baked goods. This is

Omni Metals Company and Piecework Fabrication,Inc.,enter into a contract under which Omni agrees to deliver a certain quantity of sheet metal to Piecework each month. The contract does not include a price term. In a suit between the parties over the price,a court will

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

Key of G Products,Inc.,offers to sell to Harmony Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates. Harmony replies with a signed purchase order that reads,"Accept your of-fer for 100 I-appliances at $50 each. Must be delivered to our ware-house." Key of G does not respond or deliver the goods. Harmony files a suit for breach of contract,to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G. Can Harmony recover? Explain.

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation,which sells some of the items to Physicians Clinic,which later sells them to Oscar,a patient and consumer. Article 2 of the UCC applies to the sales transactions betwee

TheUCC allows parties to form sales and lease contracts without observing the same degree of formality used n forming other types of contracts.

A course of performance is the conduct that occurs under the terms of a particular agreement.