Sales of Goods and the UCC - Module 1 of 5

Question 1

Article 2 of the Uniform Commercial Code applies to

Question 2

A merchant is one who

Question 3

In the case of a “mixed transaction” involving elements of both a goods and service, whether Article 2 applies will depend on whether

Question 4

A seller ships non-conforming goods to a buyer for “accommodation.” The buyer

Question 5

When beginning performance in response to an offer, and in order for the contract to be valid under Article 2, the party beginning performance must

Question 6

Assume Golden State Vineyards (Golden State) requests a quote from the San Pablo Cask Company (San Pablo) for wine casks. San Pablo only makes wine casks and has been in business for over one hundred years. The company sends to Golden State a signed offer to sell 100 casks at $200 per cask. The offer is good for ten days. Golden State telephones San Pablo and accepts the offer a month after receiving it but San Pablo’s business manager refuses to fulfill the order. Golden State brings a claim against San Pablo. What is the most likely result?

Question 7

Assume Lisa buys a furniture set on credit from Acme Furniture Company. She buys several items that are separately financed. However, a clause in the contract that Lisa signs states that if she fails to make a payment on one article, Acme has the right to repossess all of the articles of furniture, including the loans against other furniture articles that are currently in good standing. Lisa has a limited education and reads at an elementary school level. She does not have anyone else guide her in understanding the contract and did Acme’s salesperson does not explain the clause in question. The repossession clause is on page 36 in ten-point print. The contract also states on the final page that “Buyer agrees to waive all claims of unconscionability.” Lisa defaults and Acme brings a claim to recover the amount of the furniture loans. Under Article 2, Acme will likely

Question 8

Assume Golden State Vineyards (Golden State) orders wine corks every month from Mayan Wine Corks, Inc. (Mayan) and pays 20 cents per cork at the end of the month. Prior to this arrangement, they had never before done business. Golden State would telephone Mayan with its desired quantity every month. After 21 consecutive months of wine-cork shipments varying in quantity between 10,000 and 15,000 that Golden State always accepted and paid for, Mayan only sends only 300 wine corks and indicates this is the best it can do. Golden State refuses shipment and Mayan continuing the arrangement. Assume a court finds that a valid contract existed between Golden State and Mayan, and the court then determines the quantity term to be 12,500 per month. This estimate could most likely be based on

Question 9

Assume Golden State Vineyards (Golden State) suffers an unexpectedly bad grape harvest. In order to continue with its wine production, Golden State orders 1,000 pounds of seedless grapes from Aztec Vineyards for a price to be determined by an independent Napa Produce Price Index (Napa), which is an industry trade group. At the time of delivery, the farm price of seedless grapes is $3.10 per pound according to Napa, and is considered a reasonable price by the local growers. Under Article 2, this contract is

Question 10

Assume Golden State Vineyards (Golden State) enters into an agreement with North Bay Bottle Manufacturers (North Bay) to provide Golden State with all of the wine bottles can it can produce for the following three months. North Bay is to make one bottle shipment and payment is due upon delivery. At the end three months North Bay informs Golden State that it made no bottles. Golden State threatens suit and North Bay responds that it only agreed to provide golden State with the bottles it made and it chose not to make any. Under Article 2, is North Bay’s position legally defensible?