Chapter 14: Sales Answers – Flashcards

On behalf of Brugg Corp., Weimer sent Tri-Circle, Inc. a written offer to buy certain farm equipment. Tri-Circle accepted the offer using a pre-printed form that included a finance charge for late payment. Weimer's offer said nothing about finance charges, and he made no objection to the new term. Tri-Circle supplied the farm equipment but later sued Brugg to for failure to pay part of the agreed upon purchase price and associated finance charges. To determine whether Tri-Circle was entitled to finance charges, the court first inquired whether Brugg and Tri-Circle were merchants. Why is this important?

Nina, who owns a used car lot, signs and sends a fax to Seth, a used car wholesaler, that says, "Confirming our agrmt—I pick any 15 cars fr yr lot—30% below blue book." Seth reads the fax, laughs, and throws it away. Two weeks later, Nina arrives and demands to purchase 15 of Seth's cars at a 30% discount. Is he obligated to sell?

Charles places a stool he recently purchased on top of his toilet and climbs on top of it in order to change a light bulb. As he is unscrewing the bulb, he loses his balance and crashes face first into the side of his bathtub, shattering his nose and fracturing both wrists. If Charles sues the stool manufacturer, will he win?

Vivica is a sales associate at Sir LampsALot lighting store. She tells a customer, "This lamp gives the most beautiful lighting, and is virtually indestructible. You'll change the bulbs once a year at most." The customer purchases the lamp and signs a sales contract that states, "Customer will be able to use a single lamp to safely light an entire living room. However, Sir LampsALot makes no warranty with respect to this product. Any statements made by a salesperson or printed in this sales contract are disclaimed and form no part of this contract." Are Vivica's statements and the sales contract promises disclaimed?

Halifax manufactures a toy aquarium that includes a gel designed to look like underwater scenes, which was manufactured by Agua Corporation. When Halifax stopped ordering gel from Agua due to poor sales of the aquarium, the companies discussed changing the gel's formula. Although it did not receive an order from Halifax, Agua sent an order acknowledgment for 9.5 million packets to Halifax the next week, who made no objection to it. Do Agua and Halifax have an enforceable agreement for the 9.5 million gel packets?

Mindy sends Luciano a note signed by Mindy that reads, "This is in acknowledgement of our agreement. I will buy 5 ornate box turtles from you on September 25." Luciano never responds. Can Mindy or Luciano, both nonmerchants, enforce this agreement?

Faylene underwent heart surgery that included, among other measures, the implantation of a pacemaker in her chest. Faylene later alleged that the surgeon's negligence resulted in a serious infection. Faylene's insurance company stated that the Uniform Commercial Code (UCC) governed the dispute because at issue was a contract for a pacemaker, which is a good. The hospital responded that the claim was based on a contract for a surgery, which is a service, and was therefore covered by the common law. What result is most likely?

CompuCastle, an electronics store, discusses a deal with OptiScreens, a manufacturer of high-end computer monitors. In December, they verbally agree that CompuCastle will buy 200 AR-206 model monitors, but neither party follows up for several months. In April, CompuCastle sends OptiScreens a fax that reads, "how 'bout them screens? Our clients want 'em and so do we!" OptiScreens does not respond in writing, but sends CompuCastle 200 AR-206 models one week later. CompuCastle accepts them. If CompuCastle does not pay OptiScreens, may OptiScreens sue for breach of contract?

Custom Cashmere sends Ultrasound, a maternity clothing boutique, a sales agreement for 200 sweaters. Before signing and returning the agreement, Ultrasound crosses out the provision that reads "for delivery to the Ultrasound boutique" and writes in "for delivery to the Ultrasound warehouse." The warehouse is 400 miles away from the Ultrasound boutique. Do Cashmere and Ultrasound have an enforceable contract?

Cookie Co. offered to sell Market 20,000 pounds of cookies at $1.00 per pound, subject to certain specified delivery terms. Market replied in writing as follows: "We accept your offer for 20,000 pounds of cookies at $1.00 per pound, to be weighed on scale with a valid city certificate." Under the UCC: