Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 1

Acceptance. In April 2007, Stark, Ltd., applied for credit and opened an account with Quality Distributors, Inc., to obtain snack foods and other items for Stark's convenience stores. For three months, Quality delivered the goods and Stark paid the invoices. In July, Quality was dissolved, and its assets were distributed to J. F. Hughes Co. Hughes continued to deliver the goods to Stark, which continued to pay the invoices until November, when Stark began to experience financial difficulties. By January 2008, Stark owed Hughes $54,241.77. Hughes then dealt with Stark only on a collect-on-delivery basis until Stark's stores closed in 2009. Hughes filed a lawsuit in a state court against Stark and its owner to recover amounts due on unpaid invoices. To successfully plead its case, Hughes had to show that there was a contract between the parties. One question was whether Stark had manifested acceptance of the goods delivered by Hughes. How does a buyer manifest acceptance? Was there an acceptance in this case?