Exam 19: The Formation of Sales and Lease Contracts

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,

Trina pays Urban Edge Electronics store $1,500 for a laptop computer. Under the UCC, this is

No oral contract is enforceable under the UCC.

Under the UCC, an agreement modifying a contract needs no consideration to be binding.

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

UCC Article 2 applies to sales transactions between all buyers and sellers.

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.

Fresh Harvest, Inc., agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at

Fact Pattern 19-A1 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

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

Cleo sells kitchen appliances to persons who come into her store, Buy n' Sell Appliances. One afternoon, Cleo sells a used display shelf to Earline. At a garage sale at her home, Cleo sells a used sofa to Flavia. Under the UCC, Cleo is a merchant of

The UCC imposes a good faith limitation on requirements contracts.

Whenever the parties to an international transaction fail to specify in writing the precise terms of the contract, the United Nations Convention on Contracts for the International Sale of Goods (CISG) will be applied.

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

Certain provisions of UCC Article 2A apply only to consumer leases.

In interpreting a commercial agreement, a court will assume that the course of dealing between the parties was taken into account.

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.

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.

Overseas Corporation (OC), a U.S. firm, orally agrees to sell six freezers to Pisa Pizza, Ltd., in Italy. OC fails to deliver. Under the CISG, Pisa Pizza can

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 the sale of