BLAW Final Exam Study Guide Solutions

BLAW Final Exam Study Guide Solutions Offer and Acceptance - ANSWER-1. the acceptance of unilateral offers can be made by a promise to ship or by shipment itself. 2. not all terms have to be included for a contract to result. 3. particulars of performance can be left open. 4. Firm written offers made by a MERCHANT, the duration of which is 3 months or less, cannot be revoked. 5. Acceptance by performance requires notice within a reasonable time; otherwise, the offer can be treated as lapsed. 6. The price does not have to be included to have a contract. 7. variations in terms between the offer and the acceptance may not be a rejection but may be an acceptance. 8. acceptance may be made by any reasonable means of communication; it is effective when dispatched. Consideration - ANSWER-A modification of a contract for the sale of goods does not require consideration. ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/18 Requirement under the Statute of Frauds - ANSWER-1. all contracts for the sale of goods priced at $500 or more must be in writing. 2. exceptions: a. when written confirmation of an oral contract between merchants is not objected to in writing by the receiver within 10 days. b. when the oral contract is for specially manufactured goods not suitable for resale to others, and the seller has substantially started to manufacture the goods. c. when the defendant admits in pleadings, testimony, or other court proceedings that an oral contract for the sale of goods was made. In this case the contract will be enforceable to the quantity of goods admitted. d. when payment has been made and accepted under the terms of an oral contract. The oral agreement will be enforceable to the extent that goods have been received and accepted. When is a writing sufficient? - ANSWER-as long as it indicates a contract between the parties and it is signed by the party against whom enforcement is sought. A contract is not enforceable beyond the quantity shown in the writing Patrol Evidence - ANSWER-1. The terms of a clearly and completely worded written contract cannot be contradicted by oral or other evidence. ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/18 2. Patrol evidence is admissible to clarify the terms of a writing:a. if the contract terms are ambiguous. b. if the evidence of course of dealing, usage of trade, or course of performance is necessary to learn or to clarify the intentions of the parties to the contract. Unconscionability - ANSWER-an unconscionable contract is one that is so unfair and one sided that it would be unreasonable to enforce it. if the court deems a contract to be unconscionable at the time it was made, the court can 1) refuse to enforce the contract; 2) refuse to enforce the unconscionable clause of the contract; or 3) limit the application of any unconscionable clauses to avoid an unconscionable result. How is an Express Warranty created? - ANSWER-as a part of a sale or bargain, a seller may create an express warranty by - 1. an affirmation of fact or promise. 2. a sale by description. 3. a sample shown as conforming to bulk. Possible defenses of an Express warranty - ANSWER-1. statement that is purported to create warranty was an option.2. specific language or conduct negated or limited warranty. How is an Implied warranty of merchantability created? - ANSWER-The warranty arises when the seller is a merchant who deals in goods of the kind sold. ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/18 Possible defenses of an implied warranty of merchantability - ANSWER-1. warranty was specifically disclaimed (disclaimer can be oral or in writing but must mention merchantability and must be conspicuous). 2. sale was stated to be "as is" or "with all faults". 3. The buyer examined the goods and is therefore bound by all defects that were found or should have been found. If the buyer refused or failed to examine, the buyer is bound by obvious defects. 4. course of dealing, performance, or usage of trade. Possible defenses or lan implied warranty of fitness for a particular purpose - ANSWER-1. specific disclaimer excluded or modified warranty (disclaimer must be in writing and be conspicuous. "there are no warranties which extend beyond the description on the face hereof.") 2. sale was stated to be "as is" or "with all faults". 3. The buyer examined the goods and is therefore bound by all defects that were found or should have been found. If the buyer refused or failed to examine, the buyer is bound by obvious defects. 4. course of dealing, performance, or usage of trade. Possible defenses of an implied warranty arising from course of dealing or trade usage - ANSWER-1. warranty was excluded by specific language or as provided under UCC