Exam 19: The Formation of Sales and Lease Contracts

When an offeror does not specify a means of acceptance,acceptance can be made by any means of communication that is reasonable.

Valley Farms offers to sell Whole Harvest Bakeries,Inc.,five hundred bushels of wheat.Whole Harvest responds,"We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is

Article 2 of the UCC governs contracts for sales of goods.

Over the course of a year,Retail Market,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 Savers Bank.Article 2 of the UCC governs

Sunny Glass Company and Collision Repair Center enter into a contract under which Sunny agrees to deliver a certain quantity of auto glass to Collision Repair each month.The contract does not include a price term.In a suit between the par?ties over the price,a court will

Tune Products,Inc.,offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Unlimited 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." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract,to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover? Explain.

Five Star Flooring orders carpet from Textile Mills Corporation,but Textile does not deliver.Five Star will probably be unable to enforce the agreement if the parties omitted

Omni Corporation is a Pennsylvania-based firm that does business throughout the United States.With respect to this circumstance,the UCC has been adopted by,and applies in,

Fact Pattern 19-A1 (Questions A18-A19 apply) Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments.After thirty-six months of payments,Olisa has paid more than twice the price of a similar stove.Eighteen payments remain due under the contract. -Refer to Fact Pattern 19-A1.Under the UCC,the court can evaluate the contract to determine whether it was unreasonably unfair and one sided

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

Sweet Tooth Pastries,Inc.,and other bakers refer to a "baker's dozen" as con?sisting of a collection of thirteen baked goods.This is an example of

Rio Engineering Corporation pays PC Technologies,Inc.,$1,000 to use a com?puter for a month.For purposes of the UCC,this is

Pop Culture Clothiers,Inc.,sells t-shirts to Trendwell Stores,Inc.,under an existing con?tract.When textile costs increase,Trendwell agrees to a price increase,but later wants to cancel the con?tract.Trendwell may

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.

In a contract between merchants,additional terms in the parties' separate standard forms always automatically become part of the contract.

If a court deems any clause in a contract to have been unconscionable at the time it was made,the court can limit its application.

The terms of a fully integrated contract can be contradicted only by evidence of any prior agreements.

Under the UCC,a sales or lease contract will fail for indefiniteness if one or more terms are left open.

Fact Pattern 19-A1 (Questions A18-A19 apply) Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments.After thirty-six months of payments,Olisa has paid more than twice the price of a similar stove.Eighteen payments remain due under the contract. -Refer to Fact Pattern 19-A1.Olisa files a suit against Pay-to-Own,claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it.Olisa is asserting

Under the UCC,a sale is the passing of title from a seller to a buyer for a price payable in cash,goods,or services.