Exam 19: A: The Formation of Sales and Lease Contracts

To the extent that it has not been modified by the UCC,the common law of contracts applies to sales contracts.

Under the UCC,an agreement modifying a contract needs new consid?eration to be binding.

Over the course of a year,Mom's Appliance Company sells its wares to customers to whom it extends credit.Mom's orders the appliances from NET Appliance Depot's warehouse,from which the items are shipped via common carrier to Mom's customers.Article 2 of the UCC governs

Radiant Phone Company and Precision Works,Inc.(PWI),enter into a contract for the sale of a certain quantity of cell-phone parts,with PWI to determine the price.The price must be set according to

The UCC imposes special business standards on merchants because of their relatively high degree of commercial expertise.

Readymade Construction Corporation offers to buy from Set-Still Cement Company a certain quantity of cement for a certain price.Set-Still can ac?cept the offer by

Crafted Countertops,Inc. ,and Kitchen Design Corporation enter into a contract that does not specify the payment terms.Payment may be made in

Cotton Brokers,Inc. ,enters into a contract to sell denim clothing to Delite Natural Fashion store,which in turn sells a pair of jeans to Esmé,a consumer.In comparison to standards that apply to consumers,the UCC imposes on merchants

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

Resource Remarketers,Inc. ,offers to buy crude oil from Petro Producers,Inc.The parties later dispute the deal in court.Petro's claim that Resource ordered 10,000 gallons and Resource's testimony that it ordered only 1,000 gallons

Under the UCC,a sale is the passing of title from a seller to a buyer for a price payable in cash only.

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

All oral contracts are enforceable under the UCC.

Rikki and Sid enter into a sales contract for tennis equipment.With respect to the specific contractual provisions set out in the UCC,Rikki and Sid may

An unconscionable contract is one that is so unfair and one sided that it would be unreasonable to enforce it.

Article 2A of the UCC does not cover sub?leases of goods.

Under the UCC,an offeror must be notified within a reasonable time that the offeree has accepted.

Discount Mart,Inc. ,is an East Coast-based firm that does business throughout the United States.With respect to this circumstance,the UCC has been adopted by,and applies in,

Fact Pattern 19-B1 Fruits & Vegetables,Inc. ,and Grover's Market enter into a contract for the delivery of locally grown produce.The parties use a standard Fruits & Vegetables form that contains some of the terms the parties agree on but not others.Some of the produce spoils before it can be sold.Grover's refuses to pay for the spoiled goods. -Refer to Fact Pattern 19-B1.Grover's contends that the practice in the grocery trade with respect to payment for spoiled produce justifies its refusal to pay.Grover's is arguing that the court should take into account

Under the UCC,a contract for a sale of goods that does not include the quantity is an output contract.