Summary
In contract law, a counteroffer occurs when new terms are proposed, altering the original offer. Article 2 of the UCC applies to all sales of goods transactions, ensuring uniformity. Terms like C.I.F. Indicate that the seller covers cost, insurance, and freight. Under the UCC, timely notification of acceptance is required to validate contracts.Full Conversation
Rice River Farms, who only produces Grade A quality rice, offers to sell Sensei Sushi Restaurants, Inc., five hundred bushels of rice. Sensei responds, “We agree to buy five hundred bushels only if the rice is Grade A quality.” This statement is
a. a confirmation.
b. an acceptance.
c. a counteroffer.
d. a breach.
Sensei Sushi Restaurants, Inc.'s response is considered a c. counteroffer. In contract law, an acceptance must be a mirror image of the offer. By adding the condition "only if the rice is Grade A quality," Sensei Sushi is not simply accepting the offer but is instead proposing a new term, making it a counteroffer.
Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article * of the UCC applies to the sales transactions between
a. Rally and Sno-Sports only.
b. Sno-Sports and Tyra only.
c. all of the buyers and sellers.
d. Tyra and Upton only.
The correct answer is c. all of the buyers and sellers.
Article * of the Uniform Commercial Code (UCC) applies to transactions involving the sale of goods. In this scenario, all the transactions between Rally Corporation, Sno-Sports Inc., Tyra, and Upton involve the sale of goods (the skis), so Article * would apply to all these sales transactions.
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. The contract indicates that the price includes transportation costs to a specific destination by including the term
a. delivery ex-ship.
b. C.I.F.
c. F.O.B.
d. F.A.S.
In the context of a contract where the price includes transportation costs to a specific destination, the appropriate term would be:
b. C.I.F. (Cost, Insurance, and Freight)
This term means that the seller includes in the price the cost of the goods, insurance, and freight to the destination port.
Under the UCC, an offeror must be notified within a reasonable time that the offeree has accepted.
a. True
b. False
Case Rating: *
The correct answer is a. True. Under the Uniform Commercial Code (UCC), an offeror must be notified within a reasonable time that the offeree has accepted the offer. This is to ensure that all parties involved in the contract are aware of the acceptance and that the contract is valid.
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