Business Law Study Set 13
Quiz 23 :
Nature and Form of Sales
Refer to the case Hunter's Run Stables v Triple H (938 F Supp 166) to answer question as below. The issue is whether the Uniform Commercial code applied for the warranty of the purchase made by plaintiff from the defendant's. Relevant Terms, Laws, and Cases Uniform Commercial Code (UCC) Article 2 - concerns the sale of tangible goods. Opinion The trial court denied both parties motion for summary judgment. The court held that the UCC is not governing in this case as defendant was not selling a good; they were selling their services as a constructor. Therefore, the constructor owed no warranty on the material used for construction of the building. On the other hand, the UCC governs the sale between the building material supplier and the constructor, however, plaintiff do not have a relation with the material supplier to make a UCC claim.
Refer to the case Flowers Baking v R-P Packaging (329 SE2d 462) to answer question as below. Additional Facts Judgment is required for plaintiff, seller and maker of the packaging, and defendant, buyer of the packaging. Jury awarded damages for plaintiff. Defendant appealed contending that no contract was formed; hence, plaintiff isn't owed anything. Relevant Terms, Laws, and Cases Uniform Commercial Code (UCC) Article 2 - concerns the sale of tangible goods. UCC Subsection 2-201(3)(a) - concerns specially made goods for a buyer, that cannot be resold to another party. It states that agreements can be enforceable even when there is no written contract, which is usually required under Statute of Frauds, when the good is specially made and the seller has began manufacture. Opinion Higher court affirmed the decision. Court held that there doesn't need to be a written contract for the agreement to be enforceable. The buyer and seller had contracted for a specially made good that is only usable by the buyer's product. The good cannot be sold to anyone else; hence, the court applied UCC Subsection 2-201(3)(a) which states that agreements for specially made goods doesn't need a written agreement to be enforceable.
The merchant offered a good at a certain price to buyer, claimed that his offer be opened until for 30 days, and signed it. This contains all provisions required for a firm offer governed by Uniform Commercial Code 2-205. The merchant cannot change the price of the original offer; when the buyer accepted the offer, a binding contract is made for seller to sell at the stated to buyer. Hence, changing the price and refusing to sell can be considered a breach of contract.