The Uniform Commercial Code (UCC) includes a number of provisions that apply to

Question

The Uniform Commercial Code (UCC) includes a number of provisions that apply to contracts between merchants. One provision of the UCC is the Statute of Frauds. Hot Coffee (a fictional Florida corporation) entered into a $1,000 contract for the sale of their mugs to an independent grocery store called Foods ‘r’ Us. Are there any specific requirements for Hot Coffee’s contract based on the Statute of Frauds? In your assignment: •Summarize the Statute of Frauds •Discuss what, if any, the specific requirements would be for the contract between Hot Coffee and Foods ‘r’ Us

Explanation / Answer

1.The Statute of Fraud in the Uniform Commercial Code

The UCC is a set of commercial laws that look to grant safe and conflict-free sales and transactions in the U.S. In the part of this code that deals with sales; we can find the Statute of Fraud, which deals with what kinds of contracts need to be signed in order for the buyer to be charged. It states that the actual sales contract doesn’t need to be put into writing apart from a small signed form, with the exception of written confirmation not objected to within ten days of it being sent. Goods that were manufactured specially for a consumer are exempted for this Statute if the manufacturer has shown commitment to the item being delivered as arranged.

2.The Statue of Fraud in the contract between Hot Coffee and Foods ‘r’ us

In the case of the 1000-dollar contract entered by Hot Coffee to sell to the independent store, under the Statute of Fraud, as the total cost of the mugs is 1000 dollars (over the 500-dollar limit), the contract must be put into writing and signed by the seller (Hot Coffee) as per law, but it is recommended that both parties sign it in case there are problems with payment. However, if the mugs are custom made for Foods ‘r’ us, and they can’t be sold to a different supermarket or another kind of store, Foods ‘r’ us is obligated by law to release payment if they are unhappy with the product, even if the contract is not signed or properly in writing.

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