Exam 21: Introduction to Sales

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is

Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling & drilling machines with R-8 spindles.The purchase order stated the credit term to be 2% discount if payment was made in 10 days,with the full amount due in 30 days.M&E responded with an acceptance form accepting the offer.The acceptance form,however,stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration. (A)Do the parties have an agreement? (B)What is the payment term? (C)Is the arbitration clause part of the agreement?

Which of the following contracts requires a writing under the UCC,Article 2?

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Megan agrees to sell Nancy her Rolex watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

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

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

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Which of the following is TRUE regarding an open price term?

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

By definition,a sale under Article 2 of the UCC requires

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

In a "mixed contract," one involving a sale of both goods and services,the court will

Uncle Brandon promises to give his motorcycle to you for free at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Which of the following contracts is most likely to be declared unconscionable?

A requirements contract is a contract

Long's Department Store contracted to buy 1,000 drop-waist velour dresses in heather gray from Durham.Subsequently,Durham called and asked to ship mink-colored dresses instead of heather gray.Long agreed,in writing,to the change.Which statement is correct?

Dean Builders agrees to purchase all of its sump pump requirements for the new houses it builds from Satisfactory Sump Pump,Inc.These two business have had similar agreements the last three years and Dean's requirements have averaged 100 sump pumps per year.This year there was an unusually wet spring and Dean's requirements doubled to 200 sump pumps.Because of the high demand for sump pumps,the market price of the pumps tripled.Satisfactory Sump Pump,Inc.delivers 100 pumps at $75,the contract price.Satisfactory has exhausted its inventory and cannot deliver any more,so Dean buys the other 100 pumps from other suppliers at $225 each.Dean sues Satisfactory Sump Pump,Inc.for the additional expense.What is the most likely result?