1.Highlight the pertinent facts;

2.Identify the issue of law posed by the case problem. This will be in

the form of a question based on a legal concept from the chapter.

3.What should be the decision in the case? (i.e. the answer to the issue).

4.The reasoning for such decision.

Jack Duran, president of Colorado Carpet Installation, Inc. began

negotiations with Fred and Zuma Palermo for the sale and installation

of carpeting, carpet padding, tile, and vinyl floor covering in their

home. Duran drew up a written proposal that referred to Colorado

Carpet as "the seller" and to the Palermos as the "customer." The

proposal listed the quantity, unit cost, and total price of each item to

be installed. The total price of the job was $4,777,75. Although labor

was expressly included in this figure, Duran estimated the total labor

cost at $926. Mrs. Palermo in writing accepted Duran's written

proposal soon after he submitted it to her. After Colorado Carpet

delivered the tile to the Palermo home, however, Mrs. Palermo had a

disagreement with Colorado Carpet's tile man and arranged for

another contractor to perform the job. Colorado Carpet brought an

action against the Palermos for breach of contract. Does the Uniform

Commercial Code apply here?