Grocery, Inc.

Grocery, Inc. Uniform Commercial Code (UCC)

Article 2 is for any contract that deals with the sale of goods. Article 2 of the Uniform Commercial Code applies to the contracts that were done between Grocery Inc. and the vendors. If the contracts dealt with real estate, stocks, or bonds then Article 2 of UCC would not apply. Also, the common law contracts would apply with Grocery Inc. and the vendors. The reason in this is due to the fact that common law deals with goods and services which applies for this case. The main difference between Article 2 and Common law is if the contract is made for the sale of goods or not. If the contract is for the sale of goods then Article 2 of the Uniform Commercial Code would apply but if the contract is not about the sale of goods then common law would apply.

Gap Filing Rule (Cereal, Inc.)

There was a written contract between Grocery Inc. and Cereal Inc. that agreed to purchasing 20 cases of cereal a month at $22 per case. This contract did not however say as to what types of cereal would be shipped. Cereal Inc. cannot refuse to ship out cereal due to the agreement on the contract even though it may have not been the cereal that was wanted. Grocery Inc. has the right to reject the delivered cereal if it is not the kind cereal that was stated in the contract but because there was no specific cereals requested the shipment cannot be rejected. Another in which the order cannot be denied is that Cereal Inc. was able to fulfill a partial of the order that was requested by Grocery Inc. Cereal Inc. is protected for not giving a reasonable notice due to the fact that a natural disaster occurred which destroyed their inventory which prevented them for giving a notice however Cereal Inc. fulfilled the order to the best of their abilities. Cereal Inc. states that they are protected by the gap-filling rule which does prove to be true. The gap-filling rule helps with filling in the areas of a contract in which they...