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Hypothetical: Guy Holcumb owns and operates Oasis Goodtime Emporium, an adult entertainment establishment. Holcumb wanted to create an adult internet system for Oasis that would

Hypothetical:

Guy Holcumb owns and operates Oasis Goodtime Emporium, an adult entertainment establishment. Holcumb wanted to create an adult internet system for Oasis that would offer customers adult theme videos and live chatroom programs. On May 10, Holcumb signed a work order authorizing crossroads consulting Group (ccg) to deliver a working prototype of a customer chat system. In exchange for creating to prototype Holcumb agreed to additional work in the amount of 15,000.00 for CGC to install a customized firewall system. The work orders stated that Holcumb would make monthly payments to CCG and both parties expected the work would be finished by September. Due to unforeseen problems completion of the project required more time than initially anticipated and by the end of September, the web site was still not ready and Holcumb had fallen behind on his payments to CCG who threatened to stop work a sue for breach of contract. Rather than making further payments, Holocumb wanted to abandon the project. As a result of the foregoing:

A) Would a court be likely to decide that the transaction between Holcumb and CCG was covered by the UCC? Yes or NO? Support your answer.

B) Would a court likely consider Holcumb a merchant? Yes or No? Support your answer.

C) Did the parties have a valid contract under the UCC? Yes or No? Support your answer.

D) Suppose the parties met in October in an attempt to resolve their problems and reached an Oral agreement that CCG will continue to work without demanding full payment and Holcumb would agree to pay CCG 5000.00 per week? Was the oral agreement enforceable? Yes or No. Support your answer.

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