QUESTION 1:

The Truck Lease

Cross State Trucking Company offered to lease ten tractor-trailers from Aspen Leasing, a company that deals with such trucks. The rate offered for each truck was $1000 per month plus insurance of $250 a month and a maintenance reserve of $25 for every 24 hours of operation. Aspen replied by email stating that they accepted the offer with the following added terms and conditions: (1) Cross State will take delivery the trucks at Aspen’s place of business, (2) Aspen will clean and inspect each truck and provide a written report on the inspection to Cross State, (3) Cross State will return the trucks in the same condition at delivery, subject to normal wear and tear, and (4) Aspen will strip the trucks of all livery.

Is this offer and acceptance valid under the Uniform Commercial Code (UCC)? Why?

Supposing the Aspen's email stated the lease rate was to be $1500 per month for each truck instead of $1000 per month. Is that an acceptance under the UCC?

QUESTION 2:

The Computer Purchase

Ace Computer Company sold a desktop computer to Jack for $950.00. In addition a company technician set up the computer for use and loaded software. The cost of the software was an additional $400.00. The cost of labor was $25 per hour and the total time spent by the technician preparing the computer for delivery was 5.5 hours. Is this sale governed by the UCC? Why?

QUESTION 3:

Who is the Merchant?

Steve is an expert in sporting goods and is employed as such in the sporting goods department of Target. Because of his expertise, he is considered a merchant in the sales of sporting goods. If he stood in for a salesman in women’s clothing, an area in which he has no knowledge or experience, would he be considered a merchant in the sales of women’s clothing?

Would Target be considered a merchant for its lines of products?

QUESTION 4:

The Sales Receipt

A Sales Receipt is considered a valid contract under the UCC. Why? What two pieces of information contained therein make it so?

Discussion 1:

Due Sunday, Feb. 14 at 2359 hrs (ET)

Respond to at least 1 other post for Learning Activity 1, interactively and substantively. Comprehensively and specifically, justify/support and explain your rationale for your conclusions. Engage in dialogue with your fellow students.

The Truck Lease

Cross State Trucking Company offered to lease ten tractor-trailers from Aspen Leasing, a company that deals with such trucks. The rate offered for each truck was $1000 per month plus insurance of $250 a month and a maintenance reserve of $25 for every 24 hours of operation. Aspen replied by email stating that they accepted the offer with the following added terms and conditions: (1) Cross State will take delivery the trucks at Aspen’s place of business, (2) Aspen will clean and inspect each truck and provide a written report on the inspection to Cross State, (3) Cross State will return the trucks in the same condition at delivery, subject to normal wear and tear, and (4) Aspen will strip the trucks of all livery.

Is this offer and acceptance valid under the Uniform Commercial Code (UCC)? Why?

Yes. Section 2-207 of the UCC attempts to resolve this “battle of the forms” by providing that additional terms or conditions in an acceptance operate as such unless the acceptance is conditioned on the offeror’s consent to the new or different terms. The new terms are construed as offers but are automatically incorporated in any contract between merchants for the sale of goods unless “(a) the offer expressly limits acceptance to the terms of the offer; (b) [the terms] materially alter it; or (c) notification of objection to them has already been given or is given within a reasonable time after notice of them is received.” In any case, Section 2-207 goes on like this: “Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for sale although the writings of the parties do not otherwise establish a contract. In such case the terms of the particular contract consist of those terms on which the Saylor URL: http://www.saylor.org/books Saylor.org 367 writings of the parties agree, together with any supplementary terms incorporated under any other provisions of this Act.”

Supposing the Aspen's email stated the lease rate was to be $1500 per month for each truck instead of $1000 per month. Is that an acceptance under the UCC? Then maybe no. The new terms are construed as offers but are automatically incorporated in any contract between merchants for the sale of goods unless “(a) the offer expressly limits acceptance to the terms of the offer; (b) [the terms] materially alter it

QUESTION 2:

The Computer Purchase

Ace Computer Company sold a desktop computer to Jack for $950.00. In addition a company technician set up the computer for use and loaded software. The cost of the software was an additional $400.00. The cost of labor was $25 per hour and the total time spent by the technician preparing the computer for delivery was 5.5 hours. Is this sale governed by the UCC? Why?

QUESTION 3:

Who is the Merchant?

Steve is an expert in sporting goods and is employed as such in the sporting goods department of Target. Because of his expertise, he is considered a merchant in the sales of sporting goods. If he stood in for a salesman in women’s clothing, an area in which he has no knowledge or experience, would he be considered a merchant in the sales of women’s clothing?

Would Target be considered a merchant for its lines of products?

QUESTION 4:

The Sales Receipt

A Sales Receipt is considered a valid contract under the UCC. Why? What two pieces of information contained therein make it so?

Discussion 1:

Due Sunday, Feb. 14 at 2359 hrs (ET)

Respond to at least 1 other post for Learning Activity 1, interactively and substantively. Comprehensively and specifically, justify/support and explain your rationale for your conclusions. Engage in dialogue with your fellow students.

 

 

 

 

 

Learning Activity #2

Due Thursday, Feb. 11 at 2359 hrs (ET) (late postings will not earn credit)

QUESTION 1:

The Computer Purchase (Revisited)

Ace Computer Company ordered from Dell twenty desktop computers with 6 gigabytes of memory. Upon receipt of the order from Dell, Ace discovered that ten computers had 4 gigabytes and the rest had the ordered 6 gigabytes. What options does Ace have in relation to the order received? List all options under the Perfect Tender Rule and all options Ace would have due to the breach (delivery of non-conforming goods).

QUESTION 2:

The Computer Purchase (Revisited)

Ace Computer Company has several stores in the eastern part of the United States. When Ace made its order to Dell, Ace had not determined what stores were to receive the inventory from the order. Therefore Ace instructed Dell to deliver the order to FedEx and that Ace will instruct FedEx as to final delivery. When does Ace assume the risk of loss?

QUESTION 3:

The Computer Purchase (Revisited)

Ace Computer Company ordered ten computers from Gateway. The first five were delivered to Ace’s main store two days later, with the second five to be delivered a week later. Two days after the first delivery, Ace’s check for payment was dishonored. What options does Gateway have with respect to the delivery? How does this affect the transfer of title with respect to the first delivery?

If Ace simply did not pay or otherwise accept the goods (buyer in breach), what options does Gateway have?

QUESTION 4:

Yet another Computer Purchase

You ordered a computer with very specific features and capabilities from an expert who deals with such features. What kind of warranty should you expect from that expert?