Exam 17: Introduction to Sales and Lease Contracts

The UCC permits acceptance of an offer to buy goods by a prompt shipment of nonconforming goods to the buyer.

If the quantity term is left open in a contract for a sale of goods, there still is a basis for determining a remedy.

Manufacturing Corporation orders twelve safety videos from Productions, Inc., which delivers the videos. This is most likely

A lessor is one who acquires the right to the possession and use of goods under a lease.

Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of

The UCC provides numerous open-term provisions that can be used to fill in the gaps in a contract.

Under the UCC, contract modifications made in bad faith are still enforceable.

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods. Refer to Fact Pattern 17-1. Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods. Refer to Fact Pattern 17-1. Farmers Produce responds that it has never waived payment for spoiled goods in the past. Farmers Produce is arguing that the court should take into account

Under the UCC, parties to sales and lease contracts are free to establish whatever terms they wish.

Grains, Inc., agrees to sell to Harvest Bread Company a certain quantity of refined grains each week but many other terms are missing. In the case of a dispute, a court will presume

The UCC requires that the mirror image rule be followed for all acceptances.

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods. Growers Market sends in an order to Farmers Produce for the delivery of locally grown fruits and vegetables. Because of an early freeze, some of the locally grown fruits are not available. Farmers Produce substitutes some fruits from outside the contract definition of "local" and includes a notice that they are making an accommodation shipment due to the freeze. Farmers Produce

In a dispute over a sale involving a skateboard, Greg argues that as to this deal Hobby Shop, where Greg bought the board, is a merchant. A court may determine whether the shop is a merchant by assessing whether

Under the UCC, a contract is formed if the offeree makes a definite expression of acceptance.

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

Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 each, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 MP3 players at $50 each.  Must be delivered to our warehouse." 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.

To the extent that it has not been modified by the UCC, the common law applies to sales contracts.

Tangible property has conceptual existence and not a physical existence.

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by