Question

Background: The GC owners are aware of the importance of contracts to both buy and sell goods and services. They are reviewing the Uniform Commercial Code (UCC), Article 2, that covers contracts for sales of goods.  

The GC owners understand that the terms in their purchase contracts (i.e., contracts to purchase products from EPI) will require very different terms from their sales contracts reselling these cleaning products purchased from EPI.

First, the owners want to focus on understanding their rights and obligations associated with reselling EPI cleaning products.

Winnie and Ralph ask you to prepare information to help the GC understand risks and possible liabilities related to the resale of EPI cleaning goods to customers.

You developed a hypothetical scenario for analysis and explanation for discussion with the GC owners.

Hypothetical Scenario: Office Cleaning Pros (Pros), a local company, emailed GC that it wanted to purchase some cleaning products.

The email stated the following sales details:

• Pros wanted to purchase 6 cases of Carpet Re-New cleaning solution from GC
• the price is $200 per case of Carpet Re-New
• Delivery was to be on or before April 1, 2019
• Delivery was to be made to Pros storage warehouse facility

GC did not respond to the email, but on April 1, GC delivered 6 cases of cleaning solution products to Pros office headquarters, located next door to Pros’ storage warehouse facility. Pros moved the cleaning solution products from its headquarters to its storage warehouse facility

Three days later, Pros inspected the 6 cases GC had delivered and discovered all 6 cases contained Floor Re-New cleaning solution, not Carpet Re-New as specified in the sales contract.

Instructions:  

Prepare a memorandum to Winnie and Ralph to use for discussion with the GC owners.

Referring to the scenario above, review UCC, Article 2, and respond to the following:

1. Analyze and explain whether a contract was created between GC and Pros under the UCC.

2. Evaluate and discuss the rights and obligations of Pros following the inspection.

3. Evaluate and discuss the rights and obligations of GC, under the circumstances, following delivery and Pros’ inspection of the goods.

Answer 1

1.. The payment terms for patrons of the self-report personality inventory product from gigahertz ought to be upon receiving the merchandise the recipient should pay or with mastercard. This provides determination and establishes a contract. Section 2-305 (1) of the UCC makes it clear that after a product is delivered the set value by the vendor is affordable (Advanced Business Law and also the Legal setting.2014). This conjointly ensures that each parties are expeditiously meeting the necessities of the sales contract. If the payment terms can't be prescribed then no contract results (Advanced Business Law and also the Legal setting.2014). it's vital that the payment terms are communicated up front for the dealings to be mutual.

2..
UCC sections 2-513 (1) and (2) a vendee has the proper to examine the products they receive for compliance to the contract (Advanced Business Law and also the Legal setting.2014). gigahertz should certify that they're packaging product properly which it's causing the proper product to the right vendee. Since gigahertz is obtaining paid upon the client getting the merchandise there ought to be AN scrutiny amount of fifteen days for the buyer. If the client remains silent and zilch is communicated concerning rejection of the merchandise among the fifteen days, then the merchandise is nonrefundable. Silence could be a style of acceptive the merchandise as orthodox to the sales contract (Advanced Business Law and also the Legal setting.2014). Once payment has been received and also the vendee has not communicated any reject of the merchandise then gigahertz will go on to creating ensuing sale.
A. UCC Section 2-513 (1) (2), UCC Section 2-606 (1)
3..
If delivered product are rejected by the client, the vendor should come the funds that amounts for the injury. additionally, the vendor has the proper to interchange the rejected product with new additional acceptable product. the client has the proper to request a brand new delivery of product that satisfy the first contract. also as raise their money back upon acknowledging that the merchandise is flawed.
A. UCC Section 2-719(2), UCC Section 2A-503(2)