If for example gus could show that usage of trade in

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ents for ten months, including 400 gallons of 89 octane gasoline. In construing the intent of the parties, this will be the most significant fact. Previous contracts between the parties (course of dealing) or the usage of trade would be of secondary importance. If, for example, Gus could show that usage of trade in the gasoline retailing business allows a gas station to order whatever grades of gas it wants, Gus might still be bound to Noxxe’s interpretation of the contract as requiring him to accept all three grades of gasoline under the course of performance of this contract over the previous ten monthly deliveries. 7.6 Chapter Summary A lthough many of the legal rules for a sale of goods contract under the UCC are similar to those of the common law, it is important to be aware of the differences. The basic requirements of offer, acceptance, consideration, capacity, and legality are the same. But in such matters as the rules for firm offers, differing or additional terms in the acceptance, and modifications of sales of goods contracts, the UCC rules are exceptions to the general rule of the common law. The UCC also provides more detail in such matters as a seller’s acceptance of a buyer’s offer by shipment of goods. The UCC covers the topics of contracts in writing under the statute of frauds and the availability of parol evidence with additional clarifications applicable to goods contracts, such as the specially manufactured goods exception that may allow an oral contract over $500 to be enforced. Although sometimes the UCC rules seem vastly more complicated, they are intended to reflect the way people actually do business, and in practice can help simplify transactions. As so often in the law, the UCC gives the parties a great deal of flexibility to decide on the terms of their bargain. But when the parties don’t provide for common terms, the UCC is ready to step in and plug the gap. rog80328_07_c07_134-156.indd 151 10/26/12 5:52 PM CHAPTER 7 Section 7.6 Chapter Summary Focus on Ethics Ace Heating and Cooling sells air conditioners. One unit, the Freezy, has a fair market value of $300. During a heat wave, Ace sells three Freezys for $1,000 to the following: • • • • Breanna, single mom with poor credit, who can’t afford to pay cash for an AC unit. Breanna signs a contract to pay $1,000 on a credit plan, with an additional $500 in interest and financing fees. Barry Bigshot, investment banker, who knows the price is way too high but who is far too important to waste his time driving around town trying to get a better deal. Glamour Café, a fancy restaurant with an upscale clientele, whose AC went out in the middle of the lunch rush. The manager is desperate to get the place cooled down before people like Barry Bigshot come in for the evening happy hour. Shady Rest Nursing Home, a business with a narrow profit margin. The manager isn’t happy about the price, but old people are very vulnerable to heat, and she’s afraid that her patients’ health could be compromised by any delay in getting...
View Full Document

This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

Ask a homework question - tutors are online