978-0538496902 Chapter 13

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STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—1ȱQUIZȱ

LegalȱConceptsȱ

Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ

theȱsentence.ȱ

ȱȱ1.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱareȱgoodsȱthatȱspecificallyȱfulfillȱtheȱobligaȬ

tionsȱunderȱtheȱcontract.ȱ

ȱȱ1.ȱ_____________ȱ

ȱȱ2.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱaȱpersonȱorȱcompanyȱwhoȱȱsellsȱ

goods.ȱ

ȱȱ2.ȱ_____________ȱ

ȱȱ3.ȱAȱcontractȱmayȱbeȱdeclaredȱȱȱȱȱȱȱȱȱ?ȱȱȱ___ȱifȱitȱcontainsȱ

anyȱgrosslyȱunfairȱclauses.ȱ

ȱȱ3.ȱ_____________ȱ

ȱȱ4.ȱTheȱȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱrequiresȱtheȱtenderȱofȱgoodsȱtoȱmatchȱ

theȱbuyer’sȱorderȱabsolutely.ȱ

ȱȱ4.ȱ_____________ȱ

ȱȱ5.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱaȱreceiptȱthatȱservesȱasȱaȱwrittenȱeviȬ

denceȱofȱtheȱtransferȱofȱownershipȱofȱgoods.ȱ

ȱȱ5.ȱ_____________ȱ

ȱȱ6.ȱAȱpersonȱwhoȱpurchasesȱgoodsȱisȱa(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱȱȱ6.ȱ_____________ȱ

ȱȱ7.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱoccursȱwhenȱtheȱtransferȱofȱgoodsȱwillȱ

takeȱplaceȱinȱtheȱfuture.ȱ

ȱȱ7.ȱ_____________ȱ

ȱȱ8.ȱTangible,ȱmovable,ȱpersonalȱpropertyȱsuchȱasȱȱ ȱȱȱȱȱȱȱ

clothingȱorȱfoodȱisȱcalledȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱ

ȱȱ8.ȱ_____________ȱ

ȱȱ9.ȱTwoȱpartiesȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱwhenȱtheyȱexchangeȱgoodsȱforȱ

goods.ȱ

ȱȱ9.ȱ_____________ȱ

10.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱisȱtheȱconsiderationȱforȱaȱsale.ȱ10.ȱ_____________ȱ

LegalȱApplicationsȱ

11.ȱWhileȱonȱtheirȱtwoȬweekȱhoneymoon,ȱKeithȱandȱReginaȱstayedȱatȱaȱhotelȱwhereȱ

theȱnightlyȱrateȱwasȱ$65.ȱTheyȱboughtȱtwoȱrollsȱofȱfilmȱandȱaȱbatteryȱforȱ$19.95ȱ

atȱaȱtouristȱshop.ȱKeithȱtookȱsomeȱofȱtheirȱclothesȱtoȱImperialȱCleanersȱandȱ

agreedȱtoȱpayȱ$45ȱtoȱhaveȱthemȱcleaned.ȱReginaȱtradedȱoneȱofȱherȱbraceletsȱforȱaȱ

handȬcarvedȱwoodenȱgiraffe.ȱDoȱanyȱofȱtheseȱtransactionsȱqualifyȱasȱaȱsale?ȱExȬ

plainȱyourȱanswer.ȱ

Chapter 13 Sales Contracts 3-1

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ13—1ȱPRACTICEȱACTIVITYȱ

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ

spaceȱisȱneededȱforȱanswers.ȱ

1.ȱBettyȱEpsteinȱvisitedȱaȱbeautyȱparlorȱoperatedȱbyȱGiannattasio.ȱDuringȱtheȱ

treatment,ȱGiannattasioȱusedȱaȱproductȱcalledȱZotosȱ30Ȭdayȱcolor,ȱmanufacturedȱ

wasȱnoȱsaleȱofȱanyȱ“good”ȱtoȱEpsteinȱandȱthereforeȱtheȱUCCȱdoesȱnotȱapply.ȱAreȱ

allȱthreeȱofȱtheȱdefendantsȱincorrect?ȱExplain.ȱ[Epsteinȱv.ȱGiannattasio,ȱ197ȱA.ȱ2dȱ

2.ȱD.ȱR.ȱCurtisȱisȱaȱbrokerageȱfirmȱthatȱactsȱasȱaȱgoȬbetweenȱforȱproducersȱofȱcomȬ

modities,ȱsuchȱasȱcrops,ȱandȱpurchasersȱofȱtheȱcommodities.ȱCurtisȱcontactedȱ

GrantȱMathewsȱtoȱdiscussȱtheȱpurchaseȱofȱMathews’ȱspringȱwheatȱcrop.ȱMaȬ

thewsȱagreedȱtoȱsellȱ30,000ȱbushelsȱofȱwheatȱtoȱCurtis.ȱAlthoughȱtheyȱdiscussedȱ

fusedȱtoȱsellȱCurtisȱtheȱwheatȱafterȱCurtisȱplacedȱtheȱscaleȱatȱ14ȱpercent.ȱCurtisȱ

thenȱhadȱtoȱpurchaseȱtheȱwheatȱelsewhereȱandȱsuedȱMathewsȱforȱdamages.ȱMaȬ

thewsȱcontendedȱthatȱbecauseȱthereȱwasȱnoȱagreedȬuponȱscale,ȱthereȱwasȱnoȱ

agreedȬuponȱprice,ȱandȱtherefore,ȱthereȱwasȱnoȱcontract.ȱIsȱMathewsȱcorrect?ȱ

3-2 Chapter 13 Sales Contracts

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—1ȱRETEACHȱ

Directions:ȱFindȱandȱshadeȱinȱtheȱanswerȱtoȱeachȱquestionȱinȱtheȱtableȱandȱthenȱwriteȱ

eachȱanswerȱinȱtheȱanswerȱcolumn.ȱWriteȱtheȱremainingȱunshadedȱlettersȱinȱorderȱ

fromȱleftȱtoȱrightȱtoȱrevealȱaȱstatementȱaboutȱclaims.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱAnswersȱ

ȱȱ1.ȱWhatȱtypeȱofȱcontractȱisȱgrosslyȱunfair?ȱ1._______________________ȱ

ȱȱ2.ȱWhatȱareȱcontractsȱthatȱinvolveȱtheȱimmediateȱ

transferȱofȱgoodsȱfromȱtheȱsellerȱtoȱtheȱbuyer?ȱ

2._______________________ȱ

ȱȱ3.ȱȱ Whatȱisȱaȱreceiptȱthatȱservesȱasȱevidenceȱofȱaȱ

transferȱofȱownershipȱofȱgoods?ȱ

3._______________________ȱ

ȱȱ4.ȱȱ WhatȱtransactionȱoccursȱwhenȱtheȱbuyerȱdeȬ

liversȱtheȱagreedȱpriceȱandȱtheȱsellerȱacceptsȱit?ȱ

4._______________________ȱ

ȱȱ5.ȱWhatȱisȱaȱpersonȱorȱcompanyȱwhoȱsellsȱgoodsȱ

called?ȱ

5._______________________ȱ

ȱȱ6.ȱWhatȱisȱaȱpersonȱorȱcompanyȱwhoȱpurchasesȱ

goodsȱcalled?ȱ

6._______________________ȱ

ȱȱ7.ȱȱ Whatȱtransactionȱinvolvesȱaȱtransferȱofȱgoodsȱ

inȱtheȱfuture?ȱ

7._______________________ȱ

ȱȱ8.ȱWhatȱkindȱofȱtransactionȱinvolvesȱanȱexchangeȱ

ofȱgoods?ȱ

8._______________________ȱ

ȱȱ9.ȱWhatȱisȱtangible,ȱmovable,ȱpersonalȱpropertyȱ

called?ȱ

9._______________________ȱ

10.ȱWhatȱisȱtheȱconsiderationȱforȱaȱsale?ȱ10.______________________ȱ

PȱAȱYȱMȱEȱNȱTȱCȱOȱNȱTȱ

TȱGȱOȱOȱDȱSȱSȱAȱLȱEȱSȱ

Chapter 13 Sales Contracts 3-3

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—1ȱENRICHMENTȱ

Thisȱlessonȱdefinedȱunconscionableȱsalesȱcontracts—thoseȱthatȱareȱgrosslyȱunfairȱ

andȱoppressiveȱandȱthatȱoffendȱanȱhonestȱperson’sȱconscienceȱandȱsenseȱofȱjustice.ȱ

Theȱtermsȱtoȱtheȱcontractȱneedȱnotȱbeȱcriminalȱnorȱviolateȱaȱstatute,ȱbutȱtheyȱareȱunȬ

ethical.ȱInterviewȱaȱlawyerȱorȱreviewȱaȱlegalȱdatabaseȱtoȱfindȱanȱexampleȱofȱaȱcaseȱ

involvingȱanȱunconscionableȱsalesȱcontract.ȱThenȱanswerȱtheȱfollowingȱquestions.ȱ

1.ȱWhyȱdidȱtheȱdefendantȱconsiderȱtheȱcontractȱtoȱbeȱunconscionable?ȱ

2.ȱDidȱtheȱcourtȱfindȱforȱtheȱdefendant?ȱWhyȱorȱwhyȱnot?ȱ

3.ȱDidȱtheȱcourtȱrefuseȱtoȱenforceȱtheȱcontract?ȱDidȱtheȱcourtȱenforceȱtheȱcontractȱ

withoutȱtheȱunconscionableȱclause?ȱDidȱtheȱcourtȱlimitȱtheȱclause’sȱapplicationȱ

soȱthatȱtheȱcontractȱwasȱnoȱlongerȱunfair?ȱ

3-4 Chapter 13 Sales Contracts

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—2ȱQUIZȱ

LegalȱConceptsȱ

Directions:ȱPlaceȱaȱYȱforȱYesȱorȱanȱNȱforȱNoȱinȱtheȱAnswersȱcolumnȱtoȱindicateȱtheȱ

correctȱanswer.ȱ

ȱAnswersȱ

ȱȱ1.ȱAreȱoralȱsalesȱcontractsȱusuallyȱenforceableȱinȱcourt?ȱȱȱ1.ȱ_____ȱ

ȱȱ2.ȱCanȱeitherȱpartyȱbreachȱaȱcontract?ȱȱ ȱȱ2.ȱ_____ȱ

ȱȱ3.ȱUnderȱtheȱlawȱofȱsalesȱofȱgoods,ȱareȱnewȱtermsȱorȱtermsȱinȱaȱconȬ

tractȱtreatedȱasȱaȱproposalȱforȱtheȱadditionȱtoȱtheȱcontract?ȱ

ȱȱ3.ȱ_____ȱ

ȱȱ4.ȱIsȱaȱcontractȱenforceableȱbeyondȱtheȱstatedȱnumberȱorȱquantityȱofȱ

goods?ȱ

ȱȱ4.ȱ_____ȱ

ȱȱ5.ȱIsȱtheȱsignatureȱofȱtheȱsuingȱpartyȱsufficientȱtoȱproveȱaȱsalesȱconȬ

tractȱbetweenȱmerchants?ȱ

ȱȱ5.ȱ_____ȱ

ȱȱ6.ȱDoesȱtheȱreceivingȱofȱgoodsȱautomaticallyȱmakeȱanȱoralȱcontractȱ

bindingȱunderȱtheȱStatuteȱofȱFrauds?ȱ

ȱȱ6.ȱ_____ȱ

ȱȱ7.ȱCanȱaȱbuyerȱacceptȱgoodsȱbyȱsimplyȱusingȱthem?ȱȱȱ7.ȱ_____ȱ

ȱȱ8.ȱIsȱanȱoralȱcontractȱalwaysȱenforceableȱinȱfullȱwhenȱtheȱsellerȱhasȱ

acceptedȱpartialȱpaymentȱforȱtheȱgoods?ȱ

ȱȱ8.ȱ_____ȱ

ȱȱ9.ȱCanȱanȱoralȱcontractȱforȱnonȬsalableȱgoodsȱbeȱenforcedȱifȱtheȱselȬ

lerȱhasȱnotȱyetȱbegunȱtoȱmanufactureȱthem?ȱ

ȱȱ9.ȱ_____ȱ

10.ȱIfȱaȱcontractȱinvolvesȱgoodsȱthatȱareȱindivisible,ȱcanȱitȱbeȱenȬ

forcedȱinȱfull?ȱ

10.ȱ_____ȱ

LegalȱApplicationȱ

11.ȱJulieȱCignaȱwentȱtoȱHumble’sȱDecoratingȱCenterȱandȱorallyȱorderedȱ20ȱboxesȱofȱ

ceramicȱtileȱforȱanȱapartmentȱcomplexȱsheȱowns.ȱEachȱboxȱisȱworthȱ$150.ȱJulieȱ

toȱacceptȱandȱpayȱforȱonlyȱ7ȱadditionalȱboxesȱofȱtile.ȱCanȱHumble’sȱforceȱJulieȱtoȱ

payȱforȱtheȱremainingȱ10ȱboxesȱofȱtile?ȱExplainȱyourȱanswer.ȱAttachȱanȱaddiȬ

tionalȱpage,ȱifȱnecessary.ȱ

Chapter 13 Sales Contracts 3-5

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—2ȱPRACTICEȱACTIVITYȱ

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ

spaceȱisȱneededȱforȱanswers.ȱ

1.ȱBatemanȱorallyȱagreedȱtoȱsupplyȱL.T.V.ȱAerospaceȱCorporationȱwithȱpackingȱ

casesȱmadeȱtoȱL.T.V.’sȱspecifications.ȱTheȱcasesȱwereȱtoȱbeȱusedȱtoȱtransportȱcerȬ

liveryȱofȱtheȱcases.ȱBatemanȱsuedȱL.T.V.,ȱbutȱL.T.V.ȱraisedȱtheȱdefenseȱofȱtheȱ

StatuteȱofȱFrauds,ȱasȱthereȱwasȱnoȱwriting.ȱSinceȱthisȱisȱanȱoralȱagreement,ȱisȱitȱ

enforceable?ȱExplain.ȱ[L.T.V.ȱCorp.,ȱv.ȱBateman,ȱ492ȱS.W.ȱ2dȱ703ȱ(Tex.ȱApp.ȱ1973)]ȱ

2.ȱPollackȱenteredȱintoȱnegotiationsȱtoȱpurchaseȱaȱvehicleȱfromȱNemetȱMotors.ȱAsȱaȱ

resultȱofȱreachingȱanȱagreedȬuponȱpurchaseȱprice,ȱPollackȱgaveȱNemetȱaȱcheckȱ

forȱ$455.00ȱasȱaȱdeposit,ȱwhichȱNemetȱcashed.ȱOnȱtheȱcheck,ȱPollackȱwroteȱ“DeȬ

$13,000.”ȱWhenȱNemetȱattemptedȱtoȱraiseȱtheȱpurchaseȱprice,ȱPollackȱsuedȱtoȱenȬ

forceȱtheȱcontract.ȱNemetȱallegedȱthatȱthereȱwasȱnoȱwritingȱwhichȱevidencedȱtheȱ

contract.ȱIsȱNemet’sȱargumentȱvalid?ȱExplain.ȱ[Pollackȱv.ȱNemetȱMotors,ȱ561ȱ

3-6 Chapter 13 Sales Contracts

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—2ȱRETEACHȱ

Directions:ȱCircleȱtheȱanswersȱtoȱeachȱquestionȱinȱtheȱpuzzleȱbelow.ȱAnswersȱmayȱ

appearȱinȱhorizontalȱorȱverticalȱform.ȱTheyȱmayȱalsoȱbeȱwrittenȱbackwardsȱorȱfromȱ

theȱbottomȱofȱtheȱpuzzleȱtoȱtheȱtop.ȱ

ȱȱ1.ȱWhatȱruleȱholdsȱtheȱsaleȱofȱgoodsȱforȱ$500ȱorȱmoreȱmustȱbeȱevidencedȱbyȱ

writingȱinȱorderȱtoȱbeȱenforceableȱinȱcourt?ȱ

ȱȱ2.ȱWhatȱmustȱbeȱstatedȱaboutȱgoodsȱforȱaȱcontractȱtoȱbeȱenforced?ȱȱ

ȱȱ3.ȱWhatȱgroupȱofȱsellersȱareȱgovernedȱbyȱaȱvariationȱinȱtheȱStatuteȱofȱFrauds?ȱ

ȱȱ4.ȱHowȱmanyȱdaysȱdoesȱaȱmerchantȱhaveȱtoȱsendȱaȱwrittenȱobjectionȱtoȱaȱconȬ

firmationȱofȱanȱoralȱcontractȱwithȱanotherȱmerchant?ȱȱ

ȱȱ5.ȱWhatȱcanȱaȱbuyerȱdoȱtoȱgoods,ȱotherȱthanȱuseȱorȱconsumeȱthem,ȱthatȱshowsȱ

hisȱorȱherȱacceptanceȱofȱthem?ȱ

ȱȱ6.ȱWhatȱmustȱaȱbuyerȱdoȱinȱadditionȱtoȱreceivingȱgoodsȱtoȱbeȱboundȱbyȱtheȱconȬ

tract?ȱ

ȱȱ7.ȱIsȱtheȱsignatureȱofȱtheȱsuingȱorȱtheȱsuedȱpartyȱnecessaryȱtoȱenforceȱaȱcontractȱ

betweenȱmerchants?ȱȱ

ȱȱ8.ȱWhatȱareȱgoodsȱcalledȱwhenȱtheyȱareȱnotȱsuitableȱforȱsaleȱtoȱothers?ȱȱ

ȱȱ9.ȱWhatȱkindȱofȱpaymentȱtoȱtheȱsellerȱcausesȱaȱcontractȱtoȱbeȱcompletelyȱenȬ

forceable?ȱȱ

10.ȱWhatȱruleȱholdsȱtheȱsaleȱofȱgoodsȱforȱ$500ȱorȱmoreȱmustȱbeȱevidencedȱbyȱaȱ

writingȱinȱorderȱtoȱbeȱenforceableȱinȱcourt?ȱ

PȱAȱRȱTȱLȱYȱIȱDȱSȱRȱDȱ

OȱPȱAȱAȱFȱPȱBȱTȱTȱCȱAȱ

NȱOȱLȱPȱBȱTȱAȱSȱOȱNȱEȱ

Chapter 13 Sales Contracts 3-7

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ13—2ȱENRICHMENTȱ

Asȱyouȱlearnedȱinȱthisȱchapter,ȱtheȱUniformȱCommercialȱCodeȱappliesȱspecialȱrulesȱ

toȱmerchants.ȱSelectȱgoodsȱ(suchȱasȱanȱautomobile,ȱcomputer,ȱorȱsportsȱequipment)ȱ

thatȱyouȱorȱyourȱfamilyȱowns.ȱIdentifyȱfromȱwhomȱtheyȱwereȱpurchased,ȱandȱanȬ

swerȱtheȱfollowingȱquestions.ȱȱ

2.ȱWasȱtheȱpurchaseȱmadeȱfromȱaȱmerchantȱorȱcasualȱseller?ȱ

3.ȱCompareȱandȱcontrastȱhowȱtheȱrightsȱandȱobligationsȱofȱyouȱandȱtheȱmerchantȱ

areȱsimilarȱtoȱorȱdifferentȱfromȱtheȱrightsȱandȱobligationsȱofȱtheȱcasualȱsellerȱunȬ

derȱtheȱUCC?ȱ

3-8 Chapter 13 Sales Contracts

STUDENT _______________________________________ CLASS _______________________ DATE _________

TESTȱ

CHAPTERȱ13

SECTION I—IDENTIFY LEGAL TERMS

Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ

hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw

Answers

ȱȱ1.ȱAȱcontractȱinȱwhichȱownershipȱofȱgoodsȱtransfersȱimmediatelyȱ

fromȱtheȱsellerȱtoȱtheȱbuyerȱforȱaȱpriceȱisȱaȱcontractȱtoȱsell.ȱ

1. _____

ȱȱ2.ȱWhenȱpartiesȱexchangeȱgoodsȱforȱgoods,ȱtheȱsaleȱisȱaȱbarter.ȱ 2. _____

ȱȱ3.ȱTheȱUniformȱCommercialȱCodeȱ(UCC)ȱgovernsȱsalesȱofȱgoodsȱandȱ

contractsȱtoȱsellȱgoodsȱinȱtheȱfuture.ȱ

3. _____

ȱȱ4.ȱUnderȱtheȱlawȱofȱsalesȱofȱgoods,ȱnewȱtermsȱorȱtermsȱinȱaȱcontractȱ

areȱtreatedȱasȱaȱproposalȱforȱadditionȱtoȱtheȱcontract.ȱ

4. _____

ȱȱ5.ȱTheȱbillȱofȱsaleȱisȱabsoluteȱproofȱofȱownership.ȱ 5. _____

ȱȱ6.ȱContractsȱofȱadhesionȱareȱmoreȱlikelyȱtoȱbeȱunconscionable.ȱ 6. _____

ȱȱ7.ȱWhenȱownershipȱtransfersȱfromȱoneȱpartyȱtoȱanother,ȱsoȱdoȱtheȱ

useȱandȱenjoymentȱofȱtheȱproperty.ȱ

7. _____

ȱȱ8.ȱCasualȱsellersȱareȱalsoȱconsideredȱmerchants.ȱ 8. _____

ȱȱ9.ȱBetweenȱmerchants,ȱtheȱsignatureȱofȱtheȱpartyȱwhoȱisȱsuingȱmayȱ

sufficeȱtoȱproveȱanȱotherwiseȱunenforceableȱsalesȱcontract.ȱ

ȱȱ9.ȱ_____ȱ

10.ȱAnȱoralȱcontractȱisȱbindingȱwhenȱtheȱgoodsȱareȱreceived.ȱ10.ȱ_____ȱ

Chapter 13 Sales Contracts 3-9

SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS

Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ

representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ

ȱȱ Answersȱ

11.ȱConsiderationȱforȱaȱsaleȱorȱcontractȱtoȱsellȱgoodsȱmayȱbeȱexȬ

pressedȱinȱ(a)ȱbarter,ȱ(b)ȱprice,ȱ(c)ȱservices,ȱ(d)ȱallȱofȱtheseȱ

11._______ȱ

clothing,ȱ(b)ȱdogs,ȱ(c)ȱpatentsȱandȱcopyrights,ȱ(d)ȱanyȱofȱtheseȱ

13.ȱAcceptanceȱofȱgoodsȱoccursȱwhenȱ(a)ȱtheȱgoodsȱareȱusedȱorȱreȬ

sold,ȱ(b)ȱtheȱbuyerȱhasȱagreedȱbyȱwordsȱorȱconductȱthatȱtheȱ

goodsȱreceivedȱareȱsatisfactory,ȱ(c)ȱtheȱbuyerȱfailsȱtoȱrejectȱtheȱ

goodsȱwithinȱaȱreasonableȱlengthȱofȱtime,ȱ(d)ȱallȱofȱtheseȱ

13._______ȱ

14.ȱWhenȱbothȱpartiesȱareȱmerchants,ȱaȱnewȱtermȱinsertedȱbyȱtheȱ

offereeȱautomaticallyȱbecomesȱpartȱofȱtheȱcontractȱifȱ(a)ȱtheȱofȬ

ferorȱfailsȱtoȱobjectȱwithinȱaȱreasonableȱtime,ȱ(b)ȱtheȱgoodsȱareȱ

acceptedȱbyȱtheȱbuyer,ȱ(c)ȱdeliveryȱisȱmade,ȱ(d)ȱtheȱfinalȱpayȬ

mentȱisȱmadeȱ

14._______ȱ

15.ȱȱ Unconscionableȱcontractsȱareȱ(a)ȱcriminalȱinȱnature,ȱ(b)ȱnullȱandȱ

void,ȱ(c)ȱunethical,ȱ(d)ȱallȱofȱtheseȱ

15._______ȱ

16.ȱIfȱaȱnewȱtermȱinsertedȱintoȱtheȱcontractȱbyȱtheȱoffereeȱisȱmateȬ

rial,ȱitȱisȱincludedȱinȱtheȱcontractȱ(a)ȱifȱtheȱofferorȱdoesn’tȱnoticeȱ

it,ȱ(b)ȱifȱtheȱoffereeȱthinksȱtheȱofferorȱwon’tȱmind,ȱ(c)ȱifȱtheȱofȬ

ferorȱfailsȱtoȱobjectȱwithinȱaȱreasonableȱtime,ȱ(d)ȱonlyȱifȱtheȱ

originalȱofferorȱexpresslyȱshowsȱanȱintentionȱtoȱbeȱboundȱbyȱitȱ

16._______ȱ

17.ȱȱ Casualȱsellersȱ(a)ȱmayȱbeȱrequiredȱtoȱbeȱlicensed,ȱ(b)ȱonlyȱsellȱ

occasionally,ȱ(c)ȱonlyȱsellȱcasualȱitems,ȱ(d)ȱareȱusuallyȱsubjectedȱ

toȱspecialȱtaxationȱ

17._______ȱ

18.ȱSalesȱcontractsȱareȱvalidȱandȱenforceableȱinȱcourtȱifȱtheyȱareȱȱȱ

(a)ȱwritten,ȱ(b)ȱoral,ȱ(c)ȱimpliedȱfromȱtheȱconductȱofȱtheȱparties,ȱ

(d)ȱallȱofȱtheseȱ

18._______ȱ

19.ȱAȱsellerȱcanȱenforceȱanȱoralȱcontractȱforȱnonȬresalableȱgoodsȱifȱ

(a)ȱgoodsȱfromȱthirdȱpartiesȱhaveȱbeenȱcontracted,ȱ(b)ȱmanufacȬ

turingȱhasȱsubstantiallyȱbegun,ȱ(c)ȱaȱandȱb,ȱ(d)ȱnoneȱofȱtheseȱ

19._______ȱ

20.ȱIfȱaȱpartyȱadmitsȱinȱlegalȱtestimonyȱthatȱheȱagreedȱtoȱpartȱorȱallȱ

ofȱanȱoralȱcontractȱgovernedȱbyȱtheȱStatuteȱofȱFrauds,ȱtheȱconȬ

tractȱwouldȱbeȱ(a)ȱbindingȱtoȱtheȱextentȱadmitted,ȱ(b)ȱnullȱandȱ

void,ȱ(c)ȱrewrittenȱandȱsignedȱbyȱbothȱparties,ȱ(d)ȱnoneȱofȱtheseȱ

20._______ȱ

Chapter 13 Sales Contracts 3-11

SECTION III—APPLY LEGAL PRACTICES

21.ȱMayerȱFarmsȱcontractedȱtoȱsellȱitsȱentireȱpotatoȱcropȱtoȱSam’sȱSpudsȱatȱcurrentȱ

marketȱprices.ȱAlthoughȱMayerȱhadȱ95%ȱofȱhisȱcropȱalreadyȱharvestedȱandȱinȱ

storageȱbeforeȱtheȱdevastatingȱfloodȱcame,ȱheȱchargedȱSam’sȱSpudsȱtheȱafterȬ

floodȱinflatedȱpriceȱdueȱtoȱlimitedȱsupply.ȱIsȱthisȱanȱunconscionableȱcontract?ȱ

Explainȱyourȱanswer.ȱ

22.ȱTaoȱpurchasedȱaȱsmallȱtractȱofȱlandȱatȱtheȱtopȱofȱtheȱhillȱonȱwhichȱwasȱanȱoldȱ

countryȱstore.ȱWhenȱtheȱfamilyȱinȱtheȱvalleyȱbelowȱtheȱstoreȱlostȱlivestockȱdueȱtoȱ

pollutedȱwater,ȱitȱwasȱdiscoveredȱthatȱtheȱcountryȱstoreȱusedȱtoȱbeȱaȱgasȱstationȱ

andȱthereȱwereȱoldȱdeterioratingȱundergroundȱstorageȱtanksȱseepingȱgasolineȱ

intoȱtheȱground’sȱwaterȱtable.ȱIsȱTaoȱliableȱasȱtheȱtanksȱareȱonȱherȱproperty?ȱExȬ

plainȱyourȱanswer.ȱ

ANSWERS

Lessonȱ13—1ȱ

Quiz

4.ȱperfectȱtenderȱruleȱ

7.ȱcontractȱtoȱsellȱ

11.ȱTheȱpurchaseȱofȱtheȱcameraȱequipmentȱwasȱtheȱonlyȱsale.ȱTheȱdryȱcleaningȱandȱ

Practice Activity

1.ȱNo,ȱallȱthreeȱdefendantsȱwereȱcorrect.ȱTheȱcourtȱagreedȱwithȱallȱthree,ȱstatingȱ

thatȱunderȱtheȱUCC,ȱtheȱproductȱusedȱwasȱincidentalȱtoȱtheȱserviceȱprovidedȱ

andȱwasȱnotȱtheȱprimaryȱfeatureȱofȱtheȱtransaction.ȱTherefore,ȱthereȱisȱnoȱliabilȬ

2.ȱNo,ȱMathewsȱisȱnotȱcorrect.ȱSinceȱthisȱisȱaȱcontractȱforȱtheȱsaleȱofȱgrain,ȱitȱisȱaȱ

contractȱforȱtheȱsaleȱofȱgoodsȱandȱthusȱcoveredȱbyȱtheȱUCC.ȱTheȱcourtȱsaidȱthatȱ

underȱtheȱUCC,ȱcertainȱtermsȱcanȱbeȱleftȱopenȱwhenȱtheȱpartiesȱmakeȱtheirȱ

Reteach

3-12 Chapter 13 Sales Contracts

Chapter 13 Sales Contracts 3-13

permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

PȱAȱYȱMȱEȱNȱTȱCȱOȱNȱTȱ

VȱEȱNȱDȱOȱRȱRȱAȱCȱTȱSȱ

SȱAȱLȱEȱSȱMȱAȱDȱCȱOȱNȱ

TȱRȱAȱCȱTȱTȱOȱSȱEȱLȱLȱ

EȱFȱOȱRȱPȱRȱIȱCȱEȱPȱEȱ

RȱSȱOȱNȱAȱBȱAȱRȱTȱEȱRȱ

LȱSȱEȱRȱVȱUȱNȱCȱOȱNȱSȱ

CȱIȱOȱNȱAȱBȱLȱEȱIȱCȱEȱ

Contractsȱmadeȱforȱpersonalȱservicesȱareȱnotȱsales.ȱ

Enrichment Activity

Answersȱwillȱvary.ȱ

Lessonȱ13—2ȱ

Quiz

11.ȱJulieȱmadeȱanȱoralȱcontractȱforȱtheȱceramicȱtile.ȱTheȱcontractȱisȱonlyȱenforceableȱ

Practice Activity

1.ȱUnderȱtheȱUCC,ȱsalesȱofȱgoodsȱofȱ$500ȱorȱmoreȱareȱrequiredȱtoȱbeȱinȱwritingȱinȱ

orderȱtoȱbeȱenforceable.ȱIfȱtheyȱareȱnot,ȱthereȱareȱsomeȱexceptionsȱtoȱtheȱruleȱ

that,ȱifȱpresent,ȱwillȱmakeȱtheȱagreementȱenforceableȱevenȱwithoutȱaȱwriting.ȱ

2.ȱTheȱcourtȱruledȱthatȱtheȱcheck,ȱpayableȱtoȱtheȱdealership,ȱwithȱnotationsȱindicatȬ

ingȱdeposit,ȱpurchaseȱprice,ȱandȱanȱagreementȱtoȱpurchaseȱsubjectȱtoȱinspection,ȱ

Reteach

3-14 Chapter 13 Sales Contracts

permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

PARTLYI DSRD

ED I RTASUING

ERN I NDRATUO

LSTNAHCREM

BRESELLF IBE

ABR I VASFGRL

LLNULETOHEA

AKAS LROENSS

Enrichment Activity

Chapter 13 Sales Contracts 3-15

ANSWERS TO TEST QUESTIONS

SECTION I

SECTION II

SECTION III