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A. Contracts for Sale of Goods sale of the home. Common law rules would apply to any
such future sale.
1. (c) Under the Sales Article of the UCC, acceptance
is valid when sent if a reasonable method is used; therefore 6. (a)· Under common law, an acceptance must be un-
answer (c) is correct as both acceptances were sent prior to equivocal and unqualified in agreeing to the precise terms
the end of the ten-day period. specified by the offer. However, the Uniform Commerc.ial
Code alters this general rule as far as the sales of goods IS
2. (b) A firm offer is a written, signed offer concerning
concerned. Under the UCC, an acceptance containing addi-
the sale of goods, by a merchant, giving assurance that it tional terms is a valid acceptance unless the acceptance is
will be held open for a specified time and is irrevocable for expressly conditional upon the offeror's agreement to the
that period, not to exceed three months. Answer (a) is incor- additional terms. In this situation, a valid contract has been
rect because if the firm offer does not state a period of time, formed between Cookie Co. and Distrib Markets. Distrib
it will remain open for a reasonable period of time, not to Markets' acceptance was not conditional upon Cookie's
exceed three months. Answer (c) is incorrect as considera- agreement to the additional term and, thus, a contract is
tion is not required for a firm offer, but for an option con- formed regardless of Cookie's agreement or ~bjection to the
tract. Answer (d) is incorrect because under the firm offer additional term. This contract was for the sale of goods and
rule, only the offeror need be a merchant. is governed by the UCC rather than by common law. Under
3. (c) Under the UCC, an oral modification of an exist- common law, Distrib Markets' reply would have been a
ing contract for the sale of goods for a price less than $500 is rejection and counteroffer; but under the UCC, a contract
considered binding. Since the washer and dryer Mason was formed.
contracted to buy cost less than $500, Acme's oral agree- 7. (c) This exception for specially manufactured
ment to change the date of delivery would be enforceable. goods, even if the contract is for over $500, is one of the
The fact that Mason is not a merchant won't affect whether important exceptions found in the Statute of Fraud pr?v~-
or not the oral modification is binding. In order to have a sions of the Uniform Commercial Code. Answer (a) IS In-
firm offer, the offer must be made by a merchant in a signed correct because the exception for specially manufactured
writing which gives assurance that the offer will be held goods applies to this fact pattern and thus this contract need
open. In this situation, the modification of an offer already not be in writing. Answer (b) is incorrect because the fire
accepted is being discussed rather than a firm offer. did not prevent the custom door contract from being per-
4. (a) Under the Sales Article of the UCC, both the formed. Answer (d) is incorrect because the contract was
seller and buyer are obligated to perform a contract in good fully enforceable and Art had no legal right to cancel the
faith. Answer (b) is incorrect because certain provisions, contract.
such as the battle of forms provision, only apply to mer- S. (a) Ram may accept the offer by shipping the goods ..
chants. Answer (c) is incorrect because the Sales Article of Under the UCC, shipping nonconforrning goods constitutes
the UCC applies to the sale of goods without regard to the an acceptance, also unless the seller notifies the buyer that
price of goods. Answer (d) is incorrect because certain pro- the shipment is given only as an accommodation to the
visions of the UCC may be disclaimed by written or oral buyer. Answer (b) is incorrect because this shipment counts
agreement, such as warranty liability. as an acceptance, not as a counteroffer. Answer (c) is incor-
S. (a) Article 2 of the UCC applies to sales of goods. rect because an order to buy goods for prompt shipment
Common law generally applies to contracts for services and allows the seller to accept by either a prompt promise to ship
real estate. Even though goods are used in this service con- or by the actual prompt shipment itself.
tract, the predominate feature of this contract is the service. 9. (d) In order to have a contract, there must be both an
Article 2 of the UCC governs this contract even though it is offer and an acceptance. Even though an acceptance can
oral and for a small sum. Even though the chair at one time occur in different ways, by speech, 'by writing, or by action,
involved a lot of labor, it is still a sale of goods. Also, the actual acceptance is a required element of a contract.
whether the parties are merchants or not is not an issue on Under the UCC Sales Article, a binding contract may be
whether Article 2 applies. The heater which is not yet in- present if the parties pad intended to form a contract even
stalled in the home is a sale of goods. Once it is installed in though certain elements of the contract are missing. These
the home, it becomes part of the real estate for any future open terms will be filled by specific provisions of the UCC,
including provisions for open price, open delivery, or open