Exam 20: Formation of Sales and Lease Contracts

An unconscionable sales contract is one that is so unfair and one sided that it would be unreasonable to enforce it.

The United Nations Convention on Contracts for the International Sale of Goods (CISG)is the uniform international sales law of countries that account for more than two-thirds of all global trade.

Downtown Contractors and Equipment Rental Corporation 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

When no delivery terms are specified in a contract for a sale of goods,there is no basis for determining a remedy.

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job.Ferris's neighbor Gerda suggests that he call Home Repair Rentals,Inc.Home Repair leases Ferris a floor sander.In this transaction,the lessor is

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

Under the UCC,a contract for a sale of goods that does not include the quantity will not fail for indefiniteness.

Fact Pattern 20-B1 (Questions B16-B18 apply) Ripe Produce,Inc.,and Southeast Asian Bistro & Market enter into a contract for the delivery of locally grown fruits and vegetables.The parties use a standard Ripe 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.Southeast Asian refuses to pay for the spoiled goods. -Refer to Fact Pattern 20-B1.Ripe Produce responds that it did not waive payment for spoiled goods in the parties' previous transactions.Ripe Produce is arguing that the court should take into account

Under the UCC,the meaning of any agreement must be interpreted in light of commercial practices.

Diet & Health Food stores orders 1,000 boxes of granola bars from Energy Products,Inc.,but fails to specify the varieties.The granola bars are delivered in an assortment of varieties.Diet & Health may

Goods associated with real estate often fall within the scope of Article 2.

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

American Coffee Company and Beans Brokers,Inc.,enter into a contract for the sale of a certain quality and quantity of coffee beans,with Beans Brokers to determine the price.The price must be set according to

Refined Grains,Inc.,is a Kansas-based firm that does business throughout the world.Refined Grains manages retail and wholesale operations,buys and sells commercial venues,undeveloped land,and agricultural products,and other goods.Refined Grains has had to deal with employee and customer theft.With respect to these circumstances,the Uniform Commercial Code (UCC)provides a framework for

In a limited number of instances,the UCC presumes that special business standards ought to be imposed on merchants because of their relatively high degree of commercial expertise.

All oral contracts are enforceable under the UCC.

Over the course of a year,Suites & Sets Corporation sells household furnishings to customers to whom it extends credit.Suites & Sets orders the furnishings from The Storage Depot's warehouse,from which the items are shipped via common carrier to Suites & Sets customers.Article 2 of the UCC governs

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

Savannah and Tim enter into a sales contract for orchids.With respect to the specific contractual provisions set out in the UCC,Savannah and Tim may

Fact Pattern 20-B1 (Questions B16-B18 apply) Ripe Produce,Inc.,and Southeast Asian Bistro & Market enter into a contract for the delivery of locally grown fruits and vegetables.The parties use a standard Ripe 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.Southeast Asian refuses to pay for the spoiled goods. -Refer to Fact Pattern 20-B1.Southeast Asian contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay.Southeast Asian is arguing that the court should take into account