Business Law-Common law Contracts
I’ll attach 5 short cases that you need to answer for each of them.
For each case you must:
1. identify the critical facts (short)
2. identify the issue(s) in dispute (short)
3. identify all applicable law and rule(s)
4. draw conclusion-who wins and why.
Note:when drawing the conclusion I don’t need the number of law/rule.
The applicable law and rules are from UCC (Uniform commercial code-USA/NY -article 2 and article 2A). For instance-sales, leases, titile to goods, performance and
obligations, risk of loss, breach of sales and/or lease contract, remedies for breach, doctrine of cure, implied and express warranties, product liability (contract,
1. John ordered twenty “Metro Star” electric wall ovens from Sam’s Appliance City
which included installation at his multi family apartment house in Forest Hills, New
York. Although John was offered a “service contract”, he rejected same due to the cost.
After the wall ovens were installed in each apartment, John received an invoice
which indicated a cost of $ 3,000 for installation and $ 3,500 for all of the units.
The invoice stated at the bottom: “ Payment is due net thirty ( 3O ) days from delivery
and installation. Customer has 72 hours from date of installation to make any com-
plaints regarding labor or goods or otherwise, all complaints are waived. ” Ten days
later, tenants called John to complain that the wall ovens were not working properly.
John called Sam’s Appliance City to request service to see whether problems stemmed
from installation or the equipment. The salesperson said: “Read your invoice; the time to
complain has long since passed and you did not purchase our service contract.” When
John did not make the payment due , he was sued. John consults you about his rights.
Does the UCC apply? Why? Why not? What are the rights of the parties? Discuss
2. Pete , an agent for Whole Foods visited Jim, a farmer for more than 25 years in Albany
New York with the intention of purchasing all of the farmer’s seasonal apple crop. Dur-
ing discussions Pete offered Jim 25 cents each for 500,000 “Empire” apples and Jim
orally accepted. Later, Jim was visited by an agent for Pathmark and he accepted an
offer of 32 cents per apple for his entire crop and he signed a Purchase Order. One
week later, Jim received by certified mail a letter from Pete which confirmed the terms
of their oral agreement. Jim threw the letter in the trash basket. After the apple crop
was harvested, Whole Foods demanded delivery and Jim refused. Jim delivered his
entire crop to Pathmark. Later, Whole Foods secured “Empire” apples from Fancy
Farms at 50 cents per apple although other “Empire” apples were available at 40 cents
each. If Whole Foods elects to sue Jim, on what basis may it recover? What defenses
may Jim raise? What damages, if any, may be recovered
3. AUTO ZONE CO. ordered by email 500 tire rims from C T C Manufacturing at $100
per tire rim with “ delivery to buyer’s place of business within thirty days.” C T C
responded by fax: “ Thank you for your Order; We will deliver by ABC Truck Co.
Please remit 10% of purchase price within ten ( 10 ) days and balance on delivery.
In the event of any dispute, the parties will proceed by arbitration. Please sign and
return.” Ten days later, AUTO ZONE remitted a check for $ 5,000 with a memo that
read: “Enclosed find deposit. Disputes by Court only. Please sign and return.” Neither
AUTO ZONE nor C T C signed . Fifteen days later, While ABC’s truck was en route
to AUTO ZONE, the truck slid on ice and crashed and all the tire rims were destroyed.
When delivery did not take place by the 3oth day, AUTO ZONE faxed to C T C:
“Deliver our goods immediately or return our deposit!” C T C responded: “Truck in
accident; goods destroyed. Please remit balance due.” AUTO ZONE refused and
demanded return of its deposit or delivery of goods . C T C refused and demanded
Arbitration. AUTO ZONE refused. Discuss fully.