Question 1(2 points)

Study each of the following cases. Answer the questions that follow with Yes or No.

Contract for Labor and Materials:Rios furnished Stern, a carpenter, with a set of sketches for a cabinet she wanted built. They orally agreed on a price of $1,000, the type of wood to be used, and the delivery date. Before Stern had begun work or obtained the necessary materials, Rios canceled the agreement, saying that she planned to move to another apartment and would not need the cabinet.

1. a.Was this a contract for sale?
2. b.Was this a contract for labor and materials?
3. c.Was this a contract to sell?
4. d.Will Stern be successful in a suit for damages?

Question 1 options:

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Question 2(2 points)

Divisible or Entire Contracts:Miro, the owner of a supermarket, contracted with Market Supply Company for one complete checkout counter, including a cash register. After the counter was installed, but before the cash register was delivered, Market Supply Company demanded payment for the checkout counter. Miro refused to pay, claiming that he had contracted for a complete checkout counter, including the cash register, and he would pay when the cash register was installed.

1. a.Was this a sales contract?
2. b.Was this a divisible contract?
3. c.Was this an entire contract?
4. d.Does Market Supply have grounds for suit to collect for the portion of the order that was delivered?

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Question 1(4 points)

Study each of the following cases carefully. Briefly state the principle of law and your decision.

Substitute Goods:Gagne made a good living selling snacks, hamburgers, and refreshments at athletic events. He placed a written order with Pacific Container Company for 4,000 Styrofoam containers to be used to package hamburgers. Gagne requested that delivery be made three days before the last big football game of the season, and Pacific promised to meet the date. Two days before the game, the order still had not been delivered. In desperation, Gagne ordered 4,000 similar containers from another firm. When his order from Pacific finally arrived, Gagne refused toPage 279accept delivery or to pay for it. Pacific Container sued to collect the purchase price. Is Pacific likely to collect?

Principle of Law:

Decision:

Question 2(4 points)

Auction Sales:Bundeson, a farmer, attended an auction of used farm equipment and successfully bid $1,600 for a tractor. When he returned home, he learned that a real estate developer was eager to buy his farm and build a shopping center on the property. Bundeson agreed to sell his farm, but then realized that he would not need the tractor he had just purchased and that it would be to his advantage to avoid the sale. He notified the auctioneer that he would not go through with the sale because the Uniform Commercial Code required a written contract for personal property sales of $500 or more. Will Bundeson succeed in avoiding the contract?

Principle of Law:

Decision:

Question 3(4 points)

Contract for ServicesGates entered into a contract with Mennonite Deaconess Home & Hospital for the installation of a new, "one-ply roofing system." The work was to be done by an installer chosen by Mennonite but approved by Gates. When the work was nearly complete, but before Gates had approved the work, the hospital paid the installer 90 percent of the balance due. After inspection, Gates did not approve, and in addition, the roof leaked and had to be replaced at the hospital's expense. The hospital claimed that Gates was responsible for the quality of the work. Gates claimed that he could not be held accountable because service contracts are not covered by the Uniform Commercial Code. Did the contract involve goods or services, and will Gates be held responsible? [Mennonite Deaconess Home & Hospital Inc. v. Gates Engineering Co.,363 N.W.2d 155 (Nebraska)]

Principle of Law:

Decision: