Exam 20: Formation of Sales and Lease Contracts

Global Outfitters Outlet and Hyacinth, a consumer, enter into a contract for a sale of ultra-weather camping gear. If the contract includes a clause that is perceived as grossly unfair to Hyacinth, its enforcement may be challenged under

Diet & Health Food stores orders 1,000 boxes of granola bars from Energy Products, Inc., but fails to specify the varieties. The granola bars are delivered in an assortment of varieties. Diet & Health may

Over the course of a year, Suites & Sets Corporation sells household furnishings to customers to whom it extends credit. Suites & Sets orders the furnishings from The Storage Depot's warehouse, from which the items are shipped via common carrier to Suites & Sets customers. Article 2 of the UCC governs

Intangible property has conceptual existence and thus comes under Article 2.

On May 1, Newtown Motors, a used-car dealer, wrote a letter to O'Reilly, which stated, "We have a 1969 Pontiac Firebird in mint condition that we will sell you for $12,500 at any time before June 1. [Signed] Newtown Motors." By May 15, having heard nothing from O'Reilly, Newtown Motors sold the Firebird to another party. On May 25, O'Reilly told Newtown Motors that he accepted the offer and tendered $12,500. When Newtown Motors told O'Reilly it had sold the car to another party, O'Reilly claimed Newtown Motors had breached their contract. Is Newtown Motors in breach? Explain.

Under the UCC, an offeree can accept an offer to buy goods by a prompt shipment of conforming goods.

The UCC applies to the formation of sales and lease contracts and observes the same degree of formality used in forming other types of contracts.

The UCC applies only to the extent that it has been adopted a state.

Fact Pattern 20-B1 (Questions B16-B18 apply) Ripe Produce, Inc., and Southeast Asian Bistro & Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Ripe 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. Southeast Asian refuses to pay for the spoiled goods. -Refer to Fact Pattern 20-B1. Southeast Asian contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Southeast Asian is arguing that the court should take into account

Article 2A of the UCC covers any transaction that creates a lease of goods or a sub?lease of goods.

Savannah and Tim enter into a sales contract for orchids. With respect to the specific contractual provisions set out in the UCC, Savannah and Tim may

In a limited number of instances, the UCC imposes presumes that special business standards ought to be imposed on merchants because of their relatively high degree of commercial expertise.

Under a finance lease, the lessee can stop performing and making lease payments if the leased equipment turns out to be defective.

Refined Grains, Inc., is a Kansas-based firm that does business throughout the world. Refined Grains manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and agricultural products, and other goods. Refined Grains has had to deal with employee and customer theft. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for

Great Gear, Inc., enters into a contract to sell sports clothing and equipment to Healthways Workout store, which in turn sells a pair of bike shorts to Ilene, a consumer. In comparison to standards that apply to consumers, the UCC imposes on merchants

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

iSharp, Inc., and Jenene, the owner of a Kitchen Time shop, orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Fact Pattern 20-B1 (Questions B16-B18 apply) Ripe Produce, Inc., and Southeast Asian Bistro & Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Ripe 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. Southeast Asian refuses to pay for the spoiled goods. -Refer to Fact Pattern 20-B1. Ripe Produce responds that it did not waive payment for spoiled goods in the parties' previous transaction. Ripe Produce is arguing that the court should take into account

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

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.