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

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

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or three weeks it will decide whether to accept.One week later,Clean faxes,and Dealer receives,notice that the offer is withdrawn.Dealer immediately phones Clean to accept the $150-per-unit offer.When Clean refuses to deliver at that price,Dealer files a suit.Clean asserts,first,that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.

The UCC imposes special business standards on casual and inexperienced sellers and buyers.

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

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,

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

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

To be characterized as a "good" under the UCC,an item of property must be movable.

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

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

If the parties to a contract for a sale of goods have not agreed on a price,a court will determine a reasonable price at the time for delivery.

Bild-Rite,Inc. ,is a Colorado-based firm that does business with clients throughout North America.Bild-Rite oversees construction projects,and buys and sells commercial buildings,undeveloped land,and construction supplies and other goods.Bild-Rite has had to deal with work-site theft and vandalism.With respect to these circumstances,the Uniform Commercial Code (UCC)provides a framework for

Pressing Music,Inc. ,offers to buy from Digital Media Corporation (DMC)one million blank CDs of a certain quality.Without notifying Pressing,DMC timely ships CDs of a different quality.With respect to the offer and a possible contract,this shipment is

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

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.

Cleo sells kitchen appliances to per?sons 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

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

Under the UCC,an agreement modifying a contract needs no considera?tion to be binding.