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
The Legal Environment of Business: Text and Cases
- 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_forwardGardner-Denver is the largest manufacturer of ratchet wrenches and their replacement parts in the United States. Gardner-Denver had two different lists of prices for its wrenches and parts. Its blue list had parts that, if purchased in quantities of five or more, were available for substantially less than its white list prices 1 - Purport 2 - Did Gardner-Denver engage in price discrimination with its two price lists? 3- Assuming that Gardner-Denver has engaged in price discrimination, what law would be violated in such situation? 4- Which agency of the federal government is responsible to investigate cases that may involve price discrimination?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_forward
- Time 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_forwardPrentice 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_forward(a) In performing a contract of sale of goods, there may be a situation where the seller fails to deliver the goods in the agreed quantity. Discuss the rights of the buyer upon such failure.(b) Mel complains about a shabby t-shirt that was delivered to him by an online trader upon his purchase, but the trader refuses to issue a refund on the ground that the t-shirt is a clearance item. Advise Melarrow_forward
- 2The 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_forwardOn April 1, Orizon LLC sent Jim Stevens a letter via overnight delivery, offering to employ him to audit Orizon, LLC’s financial statements for the current year for $10,000. In the letter, Orizon, LLC stated that Jim had ten days to accept. On April 5, Jim sent Orizon, LLC a fax that stated, "The price for the audit seems too low. Would you consider paying $12,000?" Orizon, LLC received the fax. The next day, Serena Williams heard about the offer to Jim and said to Orizon, LLC, “I will accept that offer!” On learning of Serena’s statement, Jim immediately e-mailed Orizon, LLC agreeing to do the work for $10,000. Orizon, LLC received this e-mail on April 7. 1. Explain in detail why Orizon, LLC and Jim do, or do not, have a contract. 2. If you did not discuss it already, would applying the mailbox rule change your answer in #1? 3. Can Serena accept this offer?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_forward
- Define the term infringe.arrow_forwardBenigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?arrow_forwardBUSINESS LAW BUSS2422 Akram posted the offer letter on 2 October 2020 to Salam to sell his Honda City for RM50 000 to be accepted by 10 October 2020. On 4 October 2020 Akram posted another letter to revoke his proposal. The revocation letter reached Salam on 9 October 2020. On 8 October 2020, Salam posted his acceptance letter accepting the proposal. Based on the facts above: (a) Advise Salam as to his legal rights against Akram in relation to the agreement. (b) Explain if your answer would be different if Salam posted the letter of acceptance after the letter of revocation reached him. Support your answer with relevant statutory provisions of the Contracts Act 1950 and decided cases. Format: Times New Roman 12 1% spacing Front cover - Standard Format Number of pages - Minimum 3 pages, maximum 5 pagesarrow_forward
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