Question 1

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers 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. Growers Market refuses to pay for the spoiled goods.
Growers Market sends in an order to Farmers Produce for the delivery of locally grown fruits and vegetables. Because of an early freeze, some of the locally grown fruits are not available. Farmers Produce substitutes some fruits from outside the contract definition of "local" and includes a notice that they are making an accommodation shipment due to the freeze. Farmers Produce
A) accepted the offer and breached the contract by sending nonconforming goods.
B) accepted the offer but did not breach the contract because of the note .
C) did not accept the offer because the acceptance was different.
D) has an opportunity to find the locally grown fruit and send it as soon as possible.

Accepted Answer

The answer of Fact Pattern 17-1 Farmers Produce, Inc., and...

Question 2

Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of
A) the course of dealing.
B) the course of performance.
C) none of the choices.
D) usage of trade.

Accepted Answer

A "baker's dozen" as thirteen baked goods is a common practice or custom in the baking industry, which is an example of "usage of trade."

Question 3

Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 each, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 MP3 players at $50 each.  Must be delivered to our warehouse." Tune does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune. Can Unlimited recover? Explain.

Accepted Answer

The answer of Tune Products, Inc., offers to sell to...

Question 4

Grass Farms LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Grass Farms responds, "I can't do that." If a court finds a contract exists, it is a contract with
A) the new terms of the acceptance.
B) whatever the court decides is reasonable.
C) the terms of the original offer.
D) new terms to be negotiated by the parties.

Accepted Answer

The stable's response was a counteroffer, which Grass Farms did not accept, so the original offer stands if a contract is found to exist.

Question 5

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
A) enforceable to the extent of $4,000.
B) fully enforceable because it is for specially selected goods.
C) fully enforceable because it is oral.
D) not enforceable.

Accepted Answer

The contract is only enforceable to the extent of $4,000 because it is a partial payment towards the agreed-upon price. Without written evidence of the full agreement, it is difficult to determine the terms of the contract beyond this partial payment.

Question 6

Clean Machines Company makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. In that same call, Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Discuss Clean's assertions.

Accepted Answer

The answer of Clean Machines Company makes washing machines. Over...

Question 7

Bean Processors Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract.  Against Bean, as a contract, this writing will be sufficient
A) if it is signed by Bean.
B) if it is signed by Coffee.
C) if Coffee responds with an acknowledgement of the deal.
D) under no circumstances.

Accepted Answer

The writing will be sufficient as a contract against Bean if it is signed by Bean, as the signature indicates Bean's intention to be bound by the terms of the contract.

Question 8

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by
A) mutually agreeing not to commit fraud.
B) repeating the terms in a phone call.
C) setting out the terms in a memo.
D) shaking hands on the deal.

Accepted Answer

The Statute of Frauds requires that contracts for the sale of goods priced at $500 or more must be in writing. An oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000 would fall under this category. The best way to satisfy the Statute of Frauds in this case would be for the parties to set out the terms in a memo or written agreement.

Question 9

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers 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. Growers Market refuses to pay for the spoiled goods.
Refer to Fact Pattern 17-1. Farmers Produce responds that it has never waived payment for spoiled goods in the past. Farmers Produce is arguing that the court should take into account
A) the course of dealing.
B) the course of performance.
C) the usage of trade.
D) none of the choices.

Accepted Answer

Farmers Produce is arguing that the court should consider the "course of dealing," which refers to the history of previous conduct between the parties that establishes a common basis for understanding their agreement.

Question 10

Ron enters into written agreements with Sophie involving a sale of Timberline Motel, including the land, the building, and the furnishings. The UCC Statute of Frauds governs the sale of
A) all of the choices.
B) the building.
C) the furnishings priced at $500 or more.
D) the land.

Accepted Answer

The answer of Ron enters into written agreements with Sophie...

Question 11

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of
A) the piano only.
B) the piano and the gold ring.
C) neither the piano nor the gold ring.
D) the gold ring only.

Accepted Answer

Since both the piano and the gold ring were sold, a writing is required to enforce the sale of both items. A separate writing would be necessary for each item if they were sold separately.

Question 12

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers 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. Growers Market refuses to pay for the spoiled goods.
Refer to Fact Pattern 17-1. Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account
A) the course of dealing.
B) the course of performance .
C) the usage of trade.
D) the usage of performance .

Accepted Answer

Growers Market is arguing that the court should consider the "usage of trade," which refers to the regular practices and methods of dealing in a particular trade or industry that justify their refusal to pay for spoiled produce.

Quiz 17: Introduction to Sales and Lease Contracts

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

Grass Farms LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Grass Farms responds, "I can't do that." If a court finds a contract exists, it is a contract with

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

Bean Processors Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, this writing will be sufficient

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Ron enters into written agreements with Sophie involving a sale of Timberline Motel, including the land, the building, and the furnishings. The UCC Statute of Frauds governs the sale of

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of