Exam 19: A: The Formation of Sales and Lease Contracts

Under the UCC,an offeree can accept an offer to buy goods by a prompt promise to ship the goods.

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

On September 1,Jennings,a used-car dealer,wrote a letter to Wheeler in which he stated,"I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before October 9.[Signed] Jennings." By September 15,having heard nothing from Wheeler,Jennings sold the Thunderbird to another party.On September 29,Wheeler told Jennings that he accepted the offer and tendered $13,500.When Jennings told Wheeler he had sold the car to another party,Wheeler claimed Jennings had breached their contract.Is Jennings in breach? Explain.

Excel Autos & Trucks,Inc. ,contracts to sell five trucks to First Leasing Corporation,which contracts to lease the trucks to General Delivery Company.Article 2A of the UCC applies to

Under a finance lease,the lessee can stop performing and making lease payments if the leased equipment turns out to be defective.

Intangible property does not come under Article 2.

Equipment Rental Corporation and Family Farm,Inc. ,are parties to an oral agreement for a lease of farm equipment with payments in excess of $10,000.They may satisfy the Statute of Frauds by

Like the UCC,the United Nations Convention on Contracts for the International Sale of Goods (CISG)applies to consumer sales.

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

Doctors Medical Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes.The bandages are delivered in an assortment of sizes.Doctors Medical Clinic may

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

Stardust Coffee Company is a Texas-based firm that does business throughout the world.Stardust manages retail and wholesale operations,buys and sells commercial venues,undeveloped land,and coffee beans,and other goods.Stardust has had to deal with employee and customer theft.With respect to these circumstances,the Uniform Commercial Code (UCC)provides a framework for

Tom's Timber Outlet and Olivia,a consumer,enter into a contract for a sale of plywood.If the contract includes a clause that is perceived as grossly unfair to Olivia,its enforcement may be challenged under

Fact Pattern 19-B1 Fruits & Vegetables,Inc. ,and Grover's Market enter into a contract for the delivery of locally grown produce.The parties use a standard Fruits & Vegetables form that contains some of the terms the parties agree on but not others.Some of the produce spoils before it can be sold.Grover's refuses to pay for the spoiled goods. -Refer to Fact Pattern 19-B1.Fruits & Vegetables responds that it did not waive payment for spoiled produce in the parties' previous transaction.Fruits & Vegetables is arguing that the court should take into account

Charcoal Briquettes,Inc. ,is the offeror and Dante's Firewood Company is the offeree under a unilateral sales contract in which Ember's Kindling & Tinder Company is also interested.Charcoal is not notified of Dante's performance within a rea?son?able time.Charcoal

Under the UCC,a firm offer for a sale or lease of goods made by a merchant can be revoked at any time before acceptance.

A contract in which goods and services are combined never falls within the scope of UCC Article 2.

Under the UCC,good faith means devoutly religious.

GR*Tech Company agrees to sell computer equipment to Home Office Stores,Inc. ,to market to its customers.Normally,their contract would not be en?forceable unless it includes

A contract for a sale of growing crops or timber to be cut is a contract for a sale of goods.