Exam 22: Nature and Form of Sales

An oral contract to sell specially manufactured goods is enforceable if the goods cannot be sold to other buyers, and the manufacturer has made a substantial progress in manufacturing the goods.

Consumer protection statutes may require a writing that is more detailed than the writing required by the statute of frauds provision of the Uniform Commercial Code.

A sales agreement that does not satisfy the statute of frauds is:

All of the following satisfy the Statute of Frauds' except: ______.

A contract that has elements of both goods and services is always classified as a contract for the sale of goods.

______ is a transfer of possession - but not title - to personal property.

Carol, who is planning to move out of town, offers to sell her sofa to her friend Betty for $750. Betty says, "I'll take it, and I would like you to throw in the coffee table along with it." Under Article 2 of the UCC, Carol and Betty have:

A sales contract must be evidenced by a writing if the sales price of goods is equal to or more than:

If a contract for the sale of goods omits the price to be paid, the: ______.

A sale of goods is defined under UCC Article 2 as transfer of title to intangible property for a price.

Newlog, which had developed a new process for making artificial logs, entered into an oral contract with Specialty Manufacturing. The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log machinery. The contract provided that Specialty would make the part to Newlog's specifications. Newlog orally agreed to pay $5,000 for the part. Specialty made the part to Newlog's specifications, but Newlog refused to pay, claiming that the oral contract was unenforceable because of the statute of frauds. Is Newlog correct?

Janet Durham orally agreed to purchase certain computer hardware priced at $10,000 from Ted Stallings. The sale of the hardware also included a one-time setup service visit priced at $100. The total contract price amounted to $10,100. The computer hardware was delivered and set up, and Durham paid $10,100. Afterwards, Durham discovered that she could obtain the same goods and services from another seller for a total contract price of $9,100. She now seeks rescission of the contract, based on the fact that more than $500 in goods were involved in the sales transaction, that the contract between her and Stallings was subject to the statute of frauds as a result, and that the oral agreement between them was therefore unenforceable. Durham wants to return the computer hardware to Stallings, and receive reimbursement of $10,000 (She is willing to waive her claim to reimbursement for the $100 setup service visit.) Evaluate Durham's legal position in this matter.

Which of the following situations create(s) an exception to the statute of frauds writing requirement?

With regard to transactions between merchants, failure to repudiate a confirming letter within ten (10) days after receipt binds the non-signing merchant, just as if he had signed the letter or a contract.

A contract involving both services and goods is classified as a contract for the sale of goods if:

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

The UCC has adopted the common law 'mirror image' rule.

Defenses raised in a suit based on a sales contract differ greatly from defenses used in regard to any other type of contract.

A contract for the sale of goods is enforceable even if the price is "open."

The sale of goods is governed which article of the Uniform Commercial Code?