You open up a business called Sweet Success, selling home baked cookies and bars
ID: 336914 • Letter: Y
Question
You open up a business called Sweet Success, selling home baked cookies and bars. Your main supplier is Whole Grains, a company that supplies you with flour and sugar for your products. Your contract with Whole Grains is a standard purchase contract, and basically says Whole Grains will deliver 500 pounds of flour and 800 pounds of sugar every Monday to your commercial kitchen.
Is your contract subject to the UCC?
Why or why not?
Your contract includes an obligation of Whole Grains to deliver flour and sugar to your kitchen, but you learned in BusLaw that a delivery isn't the sale of good under the UCC. Does this mean that your contract is NOT subject to the UCC? Explain
One Monday, you decide you need an extra 200 pounds of flour. You call and order it, but you don't modify your written contract with Whole Grains. Will Whole Grains be in default if it fails to deliver the extra flour? Why or why not?
Explanation / Answer
You open up a business called Sweet Success, selling home baked cookies and bars. Your main supplier is Whole Grains, a company that supplies you with flour and sugar for your products. Your contract with Whole Grains is a standard purchase contract, and basically says Whole Grains will deliver 500 pounds of flour and 800 pounds of sugar every Monday to your commercial kitchen.
Is your contract subject to the UCC?
Why or why not?
Your contract includes an obligation of Whole Grains to deliver flour and sugar to your kitchen, but you learned in BusLaw that a delivery isn't the sale of good under the UCC. Does this mean that your contract is NOT subject to the UCC? Explain
One Monday, you decide you need an extra 200 pounds of flour. You call and order it, but you don't modify your written contract with Whole Grains. Will Whole Grains be in default if it fails to deliver the extra flour? Why or why not?
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