Exam 14: The Formation of Sales and Lease Contracts

Nature's Products,Inc.,sends its standard order form to Interbusiness Distribution Corporation (IDC) to evidence a sale of packing materials. IDC responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless

Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like to accept.Under the "mirror image rule" relating to offer and acceptance,an acceptance

Megan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when

Grace purchases three tons of fine merino wool on behalf of Woolen Creations.Woolen Creations wants the wool to remain in the warehouse where it is being stored until it is needed.Grace makes an offer for the wool on Monday.The offer is accepted on Tuesday.The warehouser gives Woolen Creations a warehouse receipt on Wednesday.Woolen Creations picks up the wool from the warehouse three months after the sale.Title for the wool passed to Woolen creations

Fresh Produce,Inc.,and Great Grocery Stores dispute the interpretation of an ambiguous phrase in their contract.In a suit between the parties to con-strue the contract,a court may accept evidence of

Gail enters into a contract with Hi-Price Appliances,Inc.In a suit be-tween the parties over payment under the contract,Gail claims that a certain clause is unconscionable.If the court agrees,it may

Raul agrees to ship to Ben one hundred ceil-ing fans for $5,000.Raul ini-tials his notes of the deal,which in-clude the terms,and files the notes in his office. Ben initials his own notes of the deal,which include the terms,and files the notes in his office.Raul fails to ship the fans. Against Raul,as a contract,the deal is

Under the UCC,if a contract is unilateral,the offeror must be notified of the of-feree's performance.

Dan,a computer programmer,holds a garage sale to sell a lawnmower,some clothes,some CDs and some old clothes.Will,a lawyer,sells Thelma his collection of seashells.Philip,a CEO of a successful company,sells George his pet parakeet.Judy,an expert horse trainer,sells Bob a horse.Which person would be considered a merchant under the UCC?

Sweets Store buys chocolate from Tasty Candies,Inc.The parties agree that the chocolate will be shipped "F.O.B.Sweets" via United Railroad Corporation.The chocolate is lost in transit.The loss is suffered by

Jason contracts with Golf Carts Unlimited,Inc.to buy five golf carts.The contract lists the five carts as GC001,GC002,GC003,GC004,GC005.Identification

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel,including the land,building,furnishings,shares of stock in Suite Dreams Company,and a contract with Trudy to create an ad campaign.Reba suspects that Quinn may be misrepresenting the facts.The UCC Statute of Frauds governs

A buyer and a seller cannot normally have an insurable interest in iden-tical goods at the same time.

Levi,a well-known lumber dealer with a good reputation,buys a load of lumber and pays for it with a check that is later dishonored.Sam,who is unaware of the bad check,buys the lumber from Levi.Sam is

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

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

The contract term "free on board" indicates that the selling price of goods includes transportation costs to the specific F.O.B.place named in the contract.

Before any interest in specific goods can pass from the seller to the buyer,the goods must exist and be identified to the contract.

Under a destination contract,the risk of loss passes to the buyer when the goods are duly delivered to the carrier.

Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.Jamie tells Rachel,his neighbor,that he needs a floor sander.Rachel tells Jamie to call Home Repair Rentals,Inc.Home Repair Rentals leases Jamie a floor sander.In this transaction the lessor is