Exam 23: Nature and Form of Sales

The term "course of dealing" refers to the language and customs of an industry.

Which of the following is not a sale of goods?

__________ represents a pattern of performance between the parties to a contract.

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

Gonzalez Manufacturing negotiated by telephone to purchase approximately $7,000 worth of digital video recorders from Video Imports. The final details were worked out by telephone calls on April 2nd. On April 4th, Video sent Gonzalez a confirmation of their telephone agreement, which included pertinent details. Meanwhile, on April 3rd, Gonzalez was offered a better deal than Video's and accepted it. Upon arrival of the confirmation on April 6th, Gonzalez ignored it and did nothing further until May 1st, the date before Video was to deliver. On May 1st, Gonzalez informed Video that their contract was an unenforceable oral contract and that delivery would not be accepted. When attempts to amicably settle the matter failed, Video sued Gonzalez for breach of contract. Decide.

An agreement to periodically deliver home-heating oil to a residential customer that does not indicate the duration of the contract

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

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.

When an oral contract is made to sell a television set for $600, payment and acceptance of part of the purchase price avoids the bar of the statute of frauds.

A merchant is about to transfer his entire inventory as part of an annual clearance action. This transfer is called a bulk transfer.

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

If a contract for the sale of goods does not state the price to be paid, the:

A bailment is a special form of sale in which possession is transferred to a bailee.

Goods physically existing and owned by a seller at the time of a transaction are called existing goods.

To satisfy the statute of frauds, the writing must be signed and must include the price of the goods.

Which of the following can satisfy the statute of frauds writing requirement?

If a contract calls for both rendering services and supplying materials to be used in performing the services, the contract is classified according to its dominant element.

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

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.