Business Law

Kimberley Schul

Business Law 101

Application Questions: Chapter 14

Formation and Performance of Sales and Lease Contracts

10/30/2012

1.

The UCC provides a consistent framework of rules and guidelines that focuses on the sale of goods. The UCC covers sales contracts and leases under the Statue of Frauds provisions. The designs Della and Perry developed in the past were covered by the UCC because; they were producing and selling those designs with signed contracts to their clients. Those designs are considered goods and are covered under Article 2 Section 2-105 of the UCC. Goods are defined as all physical existing things that are moveable at the time of identification to the contract for sale.

2.

Requirements under the statue of frauds, requires that all material terms to a contract be in writing. A writing under the UCC is defined as a type of documentation that shows contractual intent and satisfies the statue of frauds requirement. Perry and Della decided to produce t-shirts with designs that are going to be specially made for certain buyers, and to promote their business to that they may attract more customers and clients. As long as Perry and Della’s work is in writing, within a contract, then their merchandise is covered by UCC. The statue of frauds provision also protects Della and Perry’s designs from duplication with other companies.

3.

The purpose of the Uniform Commercial Code is to provide a consistent set of laws between the states so as to encourage commerce nationwide with consistent laws and rules being applied. Almost all commercial transactions are covered by the Uniform Commercial Code. The problems the UCC was designed to address include the complexity of transactions and laws dealing with transactions and the differences in state laws making it difficult to conduct business on an interstate level. If the UCC did not exist or cover certain products, it would have a negative effect on interstate commerce...