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Suzy Seller and Barry Buyer negotiate and agree on the sale

Clearly state the applicable Uniform Commerical Code (UCC) sections and any assumptions. Answer all questions.

1. Read through each question carefully. Many times a case can be decided based on a few facts, so it's important to read each word in a question or fact scenario.

2. Write a brief outline of your answer. Be sure to include reference to UCC sections that support your analysis. This is a law class, so this is a key requirement for the quiz.

3. Write your answer - summarize the facts, state your analysis and include the UCC sections to support your analysis. It's the analysis that counts, so even if your answer is not completely correct.

Questions:

1. Suzy Seller and Barry Buyer negotiate and agree on the sale of flower pots. They intend to contract, but leave the quantity term "to be agreed upon at a later date." Later, Barry refuses to negotiate over the quantity and repudiates (refuses) the bargain. Suzy sues for damages. Who will win the case and why? Use UCC Article 2 sections to support your answer.

2. Sam Seller sent an email to Beth Buyer with an offer to sell 20 custom birdhouses, to be sold in Beth's Best Birds retail store. The email stated that "acceptance must be faxed to my salesperson, in the form of a signed copy of the email, by 5pm on Friday, March 5." Beth prints and signs the email, scans it, and emails it to Sam on Friday morning. Sam sells the birdhouses to another buyer, and Beth files a lawsuit for breach of contract. Who wins? Explain your answer and use UCC Article 2 sections to support your answer.

3. Jon Maize is a farmer who grows and sells corn. When Jon was getting ready to sell his crop, he called a local corn distributor, CRN, and requested that they notify him when corn reached $5.00 a bushel. On January 2, 2005, the secretary at CRN called Jon and told him corn had reached $5.02 per bushel. He stated he agreed to sell his crop at the $5.02 figure and estimated that he would have between 5,000 and 6,000 bushels. A few days later, the secretary mailed Jon a written contract for the sale of 6,000 bushels of corn at $5.02 per bushel. Jon was ecstatic, but in his excitement, he accidentally dropped the contract in the pig sty, where it was trampled by pigs and covered in mud. He did not contact CRN about the contract.

Jon delivered 5,000 bushels to CRN. When he did not receive full payment, he filed suit against CRN for the balance due. CRN defended on the grounds that Jon had entered into a contract for the delivery of 6,000 bushels of corn and had failed to deliver the entire amount and the sum withheld represented damages to CRN for the shortage. What result? Use UCC Article 2 sections to support your answer.

4. Fran Hammer sells wrenches for $12 each wholesale. On September 15th, Johnson Hardware Co. placed a telephone order with Fran for 500 wrenches for delivery on Monday of the following week. When the wrenches were not delivered, Johnson called Fran to inquire as to the status of his order. Fran stated that she was too busy to be bothered with such a small order, and that no contract existed. Is there a legally enforceable contract? Explain your answer and use UCC Article 2 sections to support your answer.

Solution Preview

1. Suzy Seller and Barry Buyer negotiate and agree on the sale of flower pots. They intend to contract, but leave the quantity term "to be agreed upon at a later date." Later, Barry refuses to negotiate over the quantity and repudiates (refuses) the bargain. Suzy sues for damages. Who will win the case and why? Use UCC Article 2 sections to support your answer.

Suzy will win the case. Even though an integral part of the contract was left out, with the stipulation that it would later be agreed upon, Section 2-204(3) states that "even though one or more terms are left open, a contract for sale does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy."

2. Sam Seller sent an email to Beth Buyer with an offer to sell 20 custom birdhouses, to be sold in Beth's Best Birds retail store. The email stated that "├ó?┬Žacceptance must be faxed to my salesperson, in the form of a signed copy of the email, by 5pm on Friday, March 5." Beth prints and signs the email, scans it, and emails it to Sam on Friday morning. Sam sells the birdhouses to another buyer, and Beth files a lawsuit for breach of contract. Who wins? Explain your answer and use UCC Article 2 sections to support your answer.

Beth will win the case. Section 2-205 stipulates that "an offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for ...

Solution Summary

Suzy Seller and Barry Buyer negotiate and agree on the sale of flower pots. They intend to contract, but leave the quantity term "to be agreed upon at a later date." Later, Barry refuses to negotiate over the quantity and repudiates (refuses) the bargain. Suzy sues for damages. Who will win the case and why? Use UCC Article 2 sections to support your answer.

2. Sam Seller sent an email to Beth Buyer with an offer to sell 20 custom birdhouses, to be sold in Beth's Best Birds retail store. The email stated that "acceptance must be faxed to my salesperson, in the form of a signed copy of the email, by 5pm on Friday, March 5." Beth prints and signs the email, scans it, and emails it to Sam on Friday morning. Sam sells the birdhouses to another buyer, and Beth files a lawsuit for breach of contract. Who wins? Explain your answer and use UCC Article 2 sections to support your answer.

3. Jon Maize is a farmer who grows and sells corn. When Jon was getting ready to sell his crop, he called a local corn distributor, CRN, and requested that they notify him when corn reached $5.00 a bushel. On January 2, 2005, the secretary at CRN called Jon and told him corn had reached $5.02 per bushel. He stated he agreed to sell his crop at the $5.02 figure and estimated that he would have between 5,000 and 6,000 bushels. A few days later, the secretary mailed Jon a written contract for the sale of 6,000 bushels of corn at $5.02 per bushel. Jon was ecstatic, but in his excitement, he accidentally dropped the contract in the pig sty, where it was trampled by pigs and covered in mud. He did not contact CRN about the contract.

Jon delivered 5,000 bushels to CRN. When he did not receive full payment, he filed suit against CRN for the balance due. CRN defended on the grounds that Jon had entered into a contract for the delivery of 6,000 bushels of corn and had failed to deliver the entire amount and the sum withheld represented damages to CRN for the shortage. What result? Use UCC Article 2 sections to support your answer.

4. Fran Hammer sells wrenches for $12 each wholesale. On September 15th, Johnson Hardware Co. placed a telephone order with Fran for 500 wrenches for delivery on Monday of the following week. When the wrenches were not delivered, Johnson called Fran to inquire as to the status of his order. Fran stated that she was too busy to be bothered with such a small order, and that no contract existed. Is there a legally enforceable contract? Explain your answer and use UCC Article 2 sections to support your answer.

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