BUS311_chapter_07

In 1991 the colorado court of appeals was faced with

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Unformatted text preview: this contract unenforceable if it was actually written down and signed by a representative of Grains and in the possession of Fallis, who didn’t deny its existence? 2. Why did the appellate court have to analyze the meaning of the words “merchant” and “farmer”? 3. Why did the court conclude that Fallis was not a merchant within the meaning of the UCC, even though he sold his crops for a living? [In 1991, the Colorado Court of Appeals was faced with the same issue and cited this case. But it reached the opposite conclusion, deciding that in today’s world, farmers are more than just planters of crops and should be considered merchants under the UCC. Colorado-Kansas Grain Co. v. Reifschneider, 817 P.2d 637.] 4. What do you think Grains should have done differently to ensure that Fallis would be bound by the contract? Critical Thinking Questions 1. What was the last sales contract you made? Were you the offeror or offeree? How was the offer made? How was it accepted? 2. How about the last one involving a written agreement? Hypothetical Case Problems Case 1. Jane makes a mail-order purchase for 20 pounds of jelly beans from Candy World at $5.00 per pound. Upon receipt of the order, Candy World ships the jelly beans. A. Is this a contract for the sale of goods? B. If Candy World ships 10 pounds of jelly beans at $5.00 per pound, what will Jane’s rights be under the contract? C. If Candy World ships 20 pounds of gummy bears instead of jelly beans, will it be in breach of contract? D. If Candy World ships 20 pounds of gummy bears with a note saying “Sorry no, jelly beans, but here are some lovely gummy bears in case they will do” to Jane, will it have breached the contract? rog80328_07_c07_134-156.indd 154 10/26/12 5:52 PM Section 7.6 Chapter Summary CHAPTER 7 Case 2. Frank offers to sell his car to Carmen for $4,000 in a letter he sends her. She replies with a letter of her own that states: “I accept. Wash it before you deliver it.” A. Will a valid contract be formed? B. Will Frank have to wash the car before delivering it? C. If Carmen replied in her letter “I accept, provided you wash the car before delivering it,” would a contract be formed? Explain. Case 3. Hank, a 7’6” basketball player, verbally asks Xena, a seamstress, to make him a tuxedo. She agrees and tells him that it will cost $1,200. She takes his measurements and tells him that the tux will be ready in ten days. No writing is executed by the parties. A. If Hank changes his mind the following day and calls Xena to cancel the contract, will he be in breach of contract if Xena has not yet begun work on the project? Explain. B. If Hank calls to cancel after Xena has already ordered the material from her supplier but has done nothing else to complete the contract, can he cancel without penalty? Why? C. If Hank cancels after the material is ordered and Xena has cut it into the required pattern to create the suit, will Hank be able to cancel the contract without penalty? Case 4. Noxxe Oil enters into a binding agreement to provide 10,000 gallons of regul...
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