Case summary: Company NEPG contracted with company SS to supply stylets and nozzles to company KY. However, the contract did not make any reference to KY or required its acknowledgement. NEPG further contracted with company SS for acquiring parts from company IS. The terms of the contract stated that before shipment, company IS will obtain company NEPG’s acceptance on conforming goods. NEPG will certify the shipment according to KY’s specification. And on delivery, KY will inspect the goods. After nearly six transactions, NEPG refused to make payments as the material supplied by SS was rejected by KY.
To find: The impact of the UCC acceptance rules on the action of the parties.
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Chapter 14 Solutions
EBK THE LEGAL ENVIRONMENT OF BUSINESS:
- Before the purchase transaction, Shell had made know to Carbonic Co the purpose and intended use of electrodes. In short, Shell company put their trust and reliance on the skill and expertise of Carbonic Co. So, Shell ordered 60,000 kilograms of welding electrodes from Carbonic Co. for use in a project involving the fabrication of a cross-country gas transmission line. It turned out the electrodes are incapable of producing satisfactory weld in a vertical position. Shell sued Carbonic Co for violation under the Sale of Goods Act. Does Shell action prosper? Please state your reasons.arrow_forwardIllinois Accident and Health Producer General - Shayaan Shaikh Offer, acceptance, and consideration are necessary elements of: OA. OB. OC. OD. a warranty a representation a contract insurable interest Time Remaining Flag foarrow_forwardTime Inc. offers to sell to Unlimited Sales Company one hundred digital watches at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, “Accept your offer for 100 watches at $50 each. Must be delivered to our warehouse.” Time does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Time answers that there is no contract because Unlimited’s purchase order contained additional terms and is not signed by Time. A valid contract exists and the additional terms ("must be delivered to our warehouse") becomes part of the contract. A) True B) Falsearrow_forward
- Prentice Hall Corporation contracts with SUNY Brockport to sell certain English textbooks which the college bookstore agrees to purchase. The written agreement, which appears complete on its face, requires shipment in 3 weeks. One week after signing the written contract, the representative from Prentice Hall agreed to ship the books immediately if Brockport agrees to pay 10 cents extra per book. The representative from Brockport agrees to the extra payment. Prentice Hall failed to ship the books immediately. When Brockport sued Prentice Hall for damages, Prentice Hall claimed Brockport could not prove the agreement for immediate shipment because of the parol evidence rule. Does the parol evidence rule prevent Brockport from proving the agreement for immediate shipment? A) Yes. B) No.arrow_forwardBroker Juanita is in a single agent relationship with Seller Mike when one of Juanita's sponsored sales associates brings a buyer to the transaction. Select the statement that indicates what Juanita will need to do with respect to her relationship with Seller Mike if the buyer remains in a transaction broker relationship with the sponsored sales associate. No further actions are needed with respect to Mike's relationship. move Mike to a transaction broker relationship by having him sign a consent to transaction disclosure notice move Mike to a transaction broker relationship without informing himarrow_forward2The plaintiff sellers concluded a FOB contract for the sale of wheat to the defendant buyers, by which the latter had to make payment by an irrevocable letter of credit. The credit opened, however, required tender of documents including a full set of marine bills of lading marked ‘freight pre-paid’. The sellers rejected the credit and refused to load the wheat. Do you think the sellers were entitled to do so?arrow_forward
- Facts: On February 1, 2004, Buyer entered into a contract to buy Seller’s house in Las Vegas for $532,500 with a March closing date. On February 3, 2004 Seller notified Buyer that he was terminating the contract (without any legal basis for taking such action). The Seller then told Buyer that he would sell him the house for a higher price. On February 3, 2004, Buyer and Seller entered into a new contract for a price of $578,000. On February 16, 2004, the Seller refused to perform under the contract. The Buyer sued seeking to enforce the contract. Question: Under the common law of contracts, is the modification to the original contract enforceable? Deliverable: Write a clear, grammatically correct answer being sure to address the following points in your answer: Provide a clear statement of the governing legal principle (also called a ‘black letter law’). The ‘governing legal principle’ in any case is the legal principle that is the key to completing the legal analysis of the problem…arrow_forwardRecord the following transactions in general journal form for Ford Education Outfitters and Romero Textbooks, Inc. Ford Educational Outfitters bought merchandise on account from Romero Textbooks, Inc., invoice no. 10594, $1,868.82; terms net 30 days; FOB destination. Romero Textbooks, Inc., paid $94.73 for shipping. Ford Education Outfitters received credit memo no. 513A from Romero Textbooks, Inc., for merchandise returned, $148.68. Required: 1. For Ford Education Outfitters. Round your answers to the nearest cent. PLEASE SEE ATTACHED IMAGESarrow_forwardDefine the term infringe.arrow_forward
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