An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:
A)Steven and Michelle have been involved in contracts together for over 5 years.Steven maintains the sign for Michelle's restaurant.Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle.Michelle has always paid the bill promptly.
B)Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country.In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors.
C)Bob sees an ad in the local paper for heritage poppy seeds sold by Mel.He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as possible but does not inquire as to price.Mel sends him the seeds and the invoice.
D)None of the above.

Question

Quizplus · Accepted Answer

The situation described in option A shows an ongoing relationship between Steven and Michelle, where they have a course of dealing that involves Steven fixing the sign without express consent and Michelle promptly paying the bill. This is an example of course of dealing, which is a factor that courts consider when interpreting contracts under the UCC.

An Example of the "Course of Dealing" Concept That Courts