Exam 13: Introduction to Sales

Lorene,an artist,orally agrees to sell Sabrina a painting for $600.While Lorene is busy talking on the phone,Sabrina writes her a note on the back of an envelope she finds in her purse.The signed note states that she will stop by the studio to pick up the painting within the week.Sabrina changes her mind about the painting,and when Lorene sues to enforce the contract,Sabrina defends on the basis of the statute of frauds.Sabrina will succeed with this defense.

The stated purpose(s)of Article 2 of the UCC is/are:

Under the common law's mirror image rule,

A merchant is someone who routinely deals in the particular goods involved,or who appears to have special knowledge or skill in those goods,or who uses agents with special knowledge or skill in those goods.

Betty's BBQ orally contracts with Denny's Design House for 10,000 matchbooks at the price of 10 cents per matchbook.The matchbooks are to be embossed with a logo to be designed by Denny's Design promoting Betty's BBQ.Price,payment terms,delivery terms are agreed upon between the parties.Denny's Design creates the logo,gets Betty's BBQ's approval of the design and begins applying the logo on the matchbook covers.Denny's Design has almost finished the order when Betty's BBQ calls to say it has decided to make the eatery a smoke-free restaurant and cancels the order.Denny's Design sues,but Betty's BBQ states that the agreement is unenforceable under the statute of frauds.Who wins?

An express warranty can be created by which of the following?

Inez contracted with Filippo Furnaces Co.for the installation of a new furnace.Inez selected the furnace she wanted,accepting no suggestions from Filippo Furnaces' heating engineer.The furnace operated fine,but it did not heat the entire house.The size of the blower on the furnace was too small to accommodate the third floor of the house.Inez sued Filippo Furnaces Co.for the breach of the implied warranties of merchantability and fitness.What result?

Who is a Merchant

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it becomes law,and the stated purposes of the statute.

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Rachel Retailer sends a preprinted purchase order offering to buy goods from Snidley Supplier.Snidley acknowledges Rachel's offer with a preprinted acceptance form.The terms of the two forms do not mirror each other.To analyze whether an enforceable contract exists,one must first determine whether the new language in the acceptance is an additional term or a different term.

A contractual assurance that goods will meet certain standards

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is true?

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely:

The UCC has abolished the common law requirement of consideration in all contracts involving the sale of goods.

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

A sales representative at Oxtren,Inc orally told the purchasing agent at Wety,Inc.that its industrial saw is exceptional.Which statement is correct concerning the claim that the saw is exceptional?

A tag attached to a tree in a nursery identifying the tree as a Southern Magnolia creates an express warranty.

Jones contracts to buy a computer from Martin for $1500.The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software.Is this contract covered by the UCC or common law?

Under the UCC statute of frauds,the writing for a sale of goods must: