Exam 13: The Formation of Sales and Lease Contracts

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

Thermal Appliances Corporation,a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd. ,in Italy.Thermal fails to deliver.Under the United Nations Convention on Contracts for the International Sale of Goods (CISG),Pisa Pizza can

Office Equipment Leasing,Inc.(OEL),agrees to lease five computer workstations to Product Promotion Corporation (PPC).Before any interest in the workstations can pass from OEL to PPC,they must be

VuTech Company agrees to sell digital video equipment to Home & Business Stores,Inc. ,for Home & Business to market to its customers.Their contract will not be enforceable unless it includes

A seller with voidable title can transfer good title to a good faith purchaser for value.

Article 2 of the UCC governs contracts for sales of services.

Bild-Rite,Inc. ,is a Colorado-based firm that does business with clients throughout North America.Bild-Rite oversees construction projects,and buys and sells commercial buildings,undeveloped land,and construction supplies and other goods.Bild-Rite has had to deal with work-site theft and vandalism.With respect to these circumstances,the Uniform Commercial Code (UCC)provides a framework for

Raw Material,Inc. ,and Sewn Fabric Corporation enter into a contract for a sale of muslin.The terms do not clearly indicate whether it is a destination or shipment contract.A court would most likely presume that it is

Under the UCC,a contract for a sale of goods that includes open terms is void.

Ideal Gadgets,Inc. ,and Jolly Outlets Corporation enter into a contract for a sale of kitchenware.The contract requires Ideal to deliver the goods to Ladle Carrier Company for transport to Jolly's warehouse in Metro City.Risk of loss passes to Jolly when

"Unless otherwise explicitly agreed," title passes to the buyer at the time and place at which the seller physically delivers the goods.

Over the course of a year,Retail Marketers,Inc. ,sells goods from its inventory and one of its warehouses.In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savings Bank.Article 2 of the UCC governs

The UCC imposes the same rules of conduct on all parties in all circumstances.

On behalf of Premier Shipbuilding Corporation (PSC),Rita orders 1,000 cases of 1/4-inch nuts from Steel Parts Company's 10,000-case lot.Steel Parts separates 1,000 cases from the lot.Title and risk of loss

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer.In contrast to standards that apply to consumers,the UCC imposes on merchants

A contract between parties residing in different countries is subject to United Nations Convention on Contracts for the International Sale of Goods.

Title is one concept that the UCC has substituted for the common law concept of risk of loss.

Rodeo,S.A. ,which is based in Spain,enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company,which is based in the United States.This contract is governed by

Twyla buys a bicycle from U-Pik-It Bike Store,which agrees to keep the bike for Twyla until she picks it up.Before Twyla gets the bike,a fire destroys the store and the bike.The loss is suffered by

With a bill of lading,Cartage Common Carrier Company acknowledges possession of certain goods and contracts to deliver them.Cartage is