Grocery, Inc.Case Scenarios

Learning Team

Law/421 Contemporary Business Law

University of Phoenix

November 2014

Grocery, Inc. Uniform Commercial Code

UCC

Merchant and Individual

ContractsThe UCC does not provide for

merchant and individual contract

agreements.

UCC and the Buyer

The UCC provides protection for

the buyer.

Promote commercial efficiency by

providing standardized procedures.

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 2

Grocery, Inc. (Renovations)

• Hiring other companies to perform work

• Performance guarantee and expectations

• Delegation of duties

• Final outcome between Company A versus Company B in the Renovations

dispute.

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 3

Jeff was 17 when

he bought

car

Paid down

payment and $200

for six months

Lost job and went to dealer to cancel contract

Grocery, Inc. (Jeff)

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 4

Grocery, Inc. (Jeff)

• Dealership cannot enforce contract

• Jeff can avoid contract

• Dealership gets car

• Jeff may owe more money

• Jeff may recover some money

Jeff is still 17

• Contract is enforceable

• Dealership keeps money

• Jeff keeps car unless repossessed

Jeff is now 18

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 5

Grocery, Inc. (Cereal, Inc.)

• Gap Filling Provisions of UCC Article 2

• Risk of loss stays with seller until delivery.

• Rejection of goods from the Buyer.

• Remedies available to Grocery, Inc. (Buyer)

• Reject the goods

• Recover damages

• Obtain cover goods

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 6

• Remedies available to Cereal, Inc. (seller)

• Withhold delivery of future goods

• Resell the goods

• Recover lost profit

Harry and Tom Breach of Contract

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 7

Tom relied on the promise

Tom’s reliance was reasonable

It was in good faith and fair dealings

Who bears the risk?

• Jason shipped a truckload of peaches from his orchard to Grocery, Inc.

using an independent trucker. In route, the truck broke down and the

shipment was delayed three days. The peaches were spoiled when they

arrived. The terms of the contract were F.O.B.

Grocery, Inc. (Jason)

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 8

• Reasonable Time Delivery

• Boilerplate

• Oral Testimony

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 9

Grocery, Inc. (Bill)

11/16/2014Week_5 Learning Team "C" Case Scenario Grocery, Inc. 10

References

Melvin, S. P. (2011). The Legal Environment of Business. A Managerial Approach: Theory to

Practice. : McGraw-Hill Company.

Fullerton, J. D. (1997). Uniform Commercial Code Sale Of Goods. Retrieved from

http://www.fullertonlaw.com/construction-law-survival-manual/uniform-commercial-code-sale-of-

goods.html