1.) Article II of the UCC does NOT apply to transactions between consumers and r
ID: 384257 • Letter: 1
Question
1.) Article II of the UCC does NOT apply to transactions between consumers and requires a merchant to be one of the parties to the sale. T or F
Explanation:
2.) The fundamental laws of sales contracts are found primarily in:
A. judicial decisions of the federal courts
B. Executive decision made by the state governors.
C. Statutes passed by the state legislature.
D. All of the above (a-c) are equally important in determining the fundamental laws involving sales contracts.
Explanation:
3.) A verbal agreement was entered into by agents of Grey Loon, Inc. and Chin Wa Assocaiates. As is customary each agent sent the other a written standard form document.
Grey Loon's purchase order stated the following:
"Dispute Resolution: All unresolved disputes leading to legal conflict shall be resolved in the courts of New Jersey under New Jersey Law."
Chin Wa's purchase acknowledgement read as follows"
"Arbitration: In the event of an inability of the parties to resolve a dispute(s) arising under said contract the parties shall be compelled to arbitrate such under the supervision of a mutually chosen arbitrator under the rules of the American Arbitration Association."
As the terms in the two documents were contradictory no contract existed between the parties. T or F
Explanation:
Explanation / Answer
A1. Article II of UCC applies to transactions involving the sale of goods only. Any two parties that intend to do transactions can do so under this article. It can be either consumer to consumer or merchant (who sells regularly) to consumer. Hence, The answer is FALSE. Article II applies to transaction between consumers and a merchant is not necessary as such.
A2. D (In US, Sales Contract Laws varies from state to state. Hence, there is no common nationwide Federal contract law. Though, few laws have become standardized through UCC.)
A3. FALSE (The contract now exists. When purchase order was sent with the clause, the Chin Wa purchase acknowledgement letter binded it to the clause given by Grey Loon. Hence, ChinWa clause would not take precedent. Grey Loon's clause will be counted first. Chin Wa should have asked to change the clause before sending the acknowledgment letter and asked for revised purchase order)
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