Exam 17: Introduction to Sales and Lease Contracts

Excluded from Article 2 of the UCC is

Minerals fall within the scope of Article 2 if they are to be severed from the land by the seller.

Under the UCC, in the case of a dispute, any missing terms cannot be proved by external evidence.

In interpreting a commercial agreement, a court will assume that the usage of trade was taken into account when the agreement was phrased.

Lee pays Mobile Electronics $600 for a new phone. Under the UCC, this is

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

Ed sells his car to Fran for $5,000, his bike to Gwen for $600, his game player to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of

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. In that same call, 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 One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn.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.

Ron enters into written agreements with Sophie involving a sale of Timberline Motel, including the land, the building, and the furnishings. The UCC Statute of Frauds governs the sale of

Containers, Inc., sends its standard order form to Distribution Corporation to evidence a sale of packing materials. Distribution responds with its own standard purchase order form . Additional terms in the purchase order automatically become part of the contract unless

Bean Processors Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract.  Against Bean, as a contract, this writing will be sufficient

A firm offer in writing by a merchant is revocable at any time before acceptance.

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

The UCC permits acceptance of an offer to buy goods by a promise to ship conforming goods to the buyer.

Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is

Talk, Inc., offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

The UCC requires parties to form sales and lease contracts with the same degree of formality used in forming other types of contracts.

Jo owns a condominium that she leases to Katrina. Jo gives her daughter Lucia $450 on her sixteenth birthday. Jo sells her car to her neighbor Maria for $1,500. UCC Article 2 covers

Brad buys a bulldozer from Construction Equipment Corporation, which he leases to Deep Digs, Inc. In this situation, the lessee is

Auto Body & Paint Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted