Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nora Hudson, is the owner of a company that manufactures unique toys. She has come up with an idea for a new toy, and had

Nora Hudson, is the owner of a company that manufactures unique toys. She has come up with an idea for a new toy, and had her designer draw out the plans for that toy. Ms. Hudson has contacted Tim Wood, whose business it is to build prototypes/samples. Ms. Wood and Mr. Hudson are meeting, and after some preliminary greeting, she shows him the plans for the toy, and asks if he could make a sample of that toy so she could look at it and decide whether she wants to produce it. Tim took the plans drawn by Noras designer and said that he would get back to her. She said ok, and the two parted.

A few days later Tim called Laura and said that he could make the model if she wanted him to do it. Nora told him to go ahead and make the model. Two weeks later Tim called and told Nora that the model was ready for her to pick up and that the cost would be $5,000. She has now refused to purchase the model. She claims that there is no enforceable agreement between the two, or if there is, he took too long to make it and the price is too high. Analyze whether there is an agreement between the two. You must address every applicable Article 2 rule that applies. (out of Chapter #19) (Worth 20 points)

Assume there is an agreement between them is her argument that it took too long and the price is too high valid? Why or why not? You must do a complete analysis of these two issues. (Chapter #19 again)(Worth 15 points)

Bedn manufactures electrical wire, and ASC manufactures automobile sensors. Since 2010, ASC, in repeated transactions has purchased wire from Bedn to use in its sensors. On October 17, 2019, ASC sent Bedn a purchase order containing the quantity, price shipment date and product specifications. Bedn responded on October 22, 2019, with its order acknowledgment form. Bedn's order acknowledgment referenced ASC's specific request and contained boilerplate language on the back. The language on Bedn's form purports to limit Bedn's liability for special, indirect, and consequential damages. The back of the order acknowledgment also stated:

1.2 Where this agreement is found to be an acknowledgment, if such acknowledgment constitutes an acceptance of an offer such acceptance is expressly made conditional upon Buyer's assent solely to the terms of such acknowledgment, and acceptance of any part of product(s) delivered by company shall be deemed to constitute assent. Is there a contract, and if so what are the terms? Fully support your answer with a complete legal explanation using the correct Article 2 clauses. Pay attention to who actually made the offer and who made the acceptance. You may assume no one has ever read the entire form of either party. (This is worth 15 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Computer Accounting With Quickbooks Online

Authors: Donna Kay

2nd Edition

1260590933, 9781260590937

More Books

Students also viewed these Accounting questions

Question

Explain how to interpret the test statistic H.

Answered: 1 week ago

Question

2. Should a disciplinary system be established at Carter Cleaning?

Answered: 1 week ago