Exam 20: The Formation of Sales and Lease Contracts

Under the UCC, an offer to buy goods can be accepted only by a prompt shipment of the goods.

United Farms offers to sell Valu Bakeries, Inc., fifty bushels of wheat. Valu's representative Wendy responds, "We agree to buy fifty bushels only if the wheat is Grade A quality." Wendy's statement is

If a sales contract is unilateral, the offeror need not be notified of the of?feree's performance.

Equipment Rental Corporation and Family Farm, Inc., are parties to an oral agreement for a lease of goods with payments in excess of $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

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

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

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

The UCC does not impose different standards on merchants than it im?poses on consumers.

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

Under the UCC, a sale of goods will be considered valid only if the goods are paid for with money.

Recreation Supplies, Inc. (RSI), and Sam, the owner of a Tourist Time shop, orally agree to a sale of beach balls and seashells for $1,000. Sam gives RSI a check for $400 as a partial payment. This contract is

Cathy and Dave sign a contract for a sale of goods. Cathy is to set the price for the goods at the time of delivery, but on delivery, refuses to do so. Dave may only

The UCC imposes some different rules of conduct on merchants and consumers.

Under the UCC, a contract for a sale of goods that does not include the quantity is a requirements contract.

Standard Office Corporation pays Tech Products $1,000 to use a Tech com?puter for a month. For purposes of the UCC, this is

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

The rules governing firm offers apply to certain merchants only.

High n' Mighty Mart, Inc., is an Illinois-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in,

Fresher Foods, Inc., orally agrees to buy from Dale, a farmer, one thousand bushels of corn for $1.25 per bushel. Fresher Foods pays $125 down and agrees to pay the remainder of the purchase price on delivery, which is scheduled for one week later. When Fresher Foods tenders the balance of $1,125 on the scheduled day of delivery and requests the corn, Dale refuses to deliver it. Fresher Foods sues Dale for damages, claiming that Dale breached their oral contract. Can Fresher Foods recover? If so, to what extent?