CROSS STATE TRUCKING COMPANY OFFERED TO LEASE TEN TRACTOR-TRAILERS FROM ASPEN LEASING, A COMPANY THAT DEALS WITH SUCH TRUCKS

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QUESTION 1:
The Truck Lease
Cross State Trucking Company offered to lease ten tractor-trailers from Aspen Leasing, a
company that
deals with such trucks. The rate offered for each truck was $1000 per month plus
insurance of $250 a
month and a maintenance reserve of $25 for every 24 hours of operation. Aspen replied by
email stating
that they accepted the offer with the following added terms and conditions: (1) Cross
State will take
delivery the trucks at Aspen’s place of business, (2) Aspen will clean and inspect each
truck and provide a
written report on the inspection to Cross State, (3) Cross State will return the trucks in the
same
condition at delivery, subject to normal wear and tear, and (4) Aspen will strip the trucks
of all livery.
Is this offer and acceptance valid under the Uniform Commercial Code (UCC)? Why?
Supposing the Aspen's email stated the lease rate was to be $1500 per month for each
truck instead of
$1000 per month. Is that an acceptance under the UCC?
QUESTION 2:
The Computer Purchase
Ace Computer Company sold a desktop computer to Jack for $950.00. In addition a
company technician
set up the computer for use and loaded software. The cost of the software was an
additional $400.00.
The cost of labor was $25 per hour and the total time spent by the technician preparing
the computer
for delivery was 5.5 hours. Is this sale governed by the UCC? Why?
QUESTION 3:
Who is the Merchant?
Steve is an expert in sporting goods and is employed as such in the sporting goods
department of Target.
Because of his expertise, he is considered a merchant in the sales of sporting goods. If he
stood in for a
salesman in women’s clothing, an area in which he has no knowledge or experience,
would he be
considered a merchant in the sales of women’s clothing?
Would Target be considered a merchant for its lines of products?
QUESTION 4:

2. The Sales Receipt
A Sales Receipt is considered a valid contract under the UCC. Why? What two pieces of
information
contained therein make it so?
Discussion 1:
Due Sunday, Feb. 14 at 2359 hrs (ET)
Respond to at least 1 other post for Learning Activity 1, interactively and substantively.
Comprehensively
and specifically, justify/support and explain your rationale for your conclusions. Engage
in dialogue with
your fellow students.
The Truck Lease
Cross State Trucking Company offered to lease ten tractor-trailers from Aspen Leasing, a
company that
deals with such trucks. The rate offered for each truck was $1000 per month plus
insurance of $250 a
month and a maintenance reserve of $25 for every 24 hours of operation. Aspen replied by
email stating
that they accepted the offer with the following added terms and conditions: (1) Cross
State will take
delivery the trucks at Aspen’s place of business, (2) Aspen will clean and inspect each
truck and provide a
written report on the inspection to Cross State, (3) Cross State will return the trucks in the
same
condition at delivery, subject to normal wear and tear, and (4) Aspen will strip the trucks
of all livery.
Is this offer and acceptance valid under the Uniform Commercial Code (UCC)? Why?
Yes. Section 2-207 of the UCC attempts to resolve this “battle of the forms” by providing
that
additional terms or conditions in an acceptance operate as such unless the acceptance is
conditioned
on the offeror’s consent to the new or different terms. The new terms are construed as
offers but are
automatically incorporated in any contract between merchants for the sale of goods
unless “(a) the
offer expressly limits acceptance to the terms of the offer; (b) [the terms] materially alter
it; or (c)
notification of objection to them has already been given or is given within a reasonable
time after
notice of them is received.” In any case, Section 2-207 goes on like this: “Conduct by both
parties
which recognizes the existence of a contract is sufficient to establish a contract for sale
although the
writings of the parties do not otherwise establish a contract. In such case the terms of the
particular
contract consist of those terms on which the Saylor URL: http://www.saylor.org/books
Saylor.org 367

3. writings of the parties agree, together with any supplementary terms incorporated under
any other
provisions of this Act.”
Supposing the Aspen's email stated the lease rate was to be $1500 per month for each
truck instead of
$1000 per month. Is that an acceptance under the UCC? Then maybe no. The new terms
are construed
as offers but are automatically incorporated in any contract between merchants for the
sale of goods
unless “(a) the offer expressly limits acceptance to the terms of the offer; (b) [the terms]
materially
alter it
QUESTION 2:
The Computer Purchase
Ace Computer Company sold a desktop computer to Jack for $950.00. In addition a
company technician
set up the computer for use and loaded software. The cost of the software was an
additional $400.00.
The cost of labor was $25 per hour and the total time spent by the technician preparing
the computer
for delivery was 5.5 hours. Is this sale governed by the UCC? Why?
QUESTION 3:
Who is the Merchant?
Steve is an expert in sporting goods and is employed as such in the sporting goods
department of Target.
Because of his expertise, he is considered a merchant in the sales of sporting goods. If he
stood in for a
salesman in women’s clothing, an area in which he has no knowledge or experience,
would he be
considered a merchant in the sales of women’s clothing?
Would Target be considered a merchant for its lines of products?
QUESTION 4:
The Sales Receipt
A Sales Receipt is considered a valid contract under the UCC. Why? What two pieces of
information
contained therein make it so?
Discussion 1:
Due Sunday, Feb. 14 at 2359 hrs (ET)
Respond to at least 1 other post for Learning Activity 1, interactively and substantively.
Comprehensively
and specifically, justify/support and explain your rationale for your conclusions. Engage
in dialogue with
your fellow students.
Learning Activity #2
Due Thursday, Feb. 11 at 2359 hrs (ET) (late postings will not earn credit)
QUESTION 1:

4. The Computer Purchase (Revisited)
Ace Computer Company ordered from Dell twenty desktop computers with 6 gigabytes of
memory.
Upon receipt of the order from Dell, Ace discovered that ten computers had 4 gigabytes
and the rest had
the ordered 6 gigabytes. What options does Ace have in relation to the order received?
List all options
under the Perfect Tender Rule and all options Ace would have due to the breach (delivery
of nonconforming goods).
QUESTION 2:
The Computer Purchase (Revisited)
Ace Computer Company has several stores in the eastern part of the United States. When
Ace made its
order to Dell, Ace had not determined what stores were to receive the inventory from the
order.
Therefore Ace instructed Dell to deliver the order to FedEx and that Ace will instruct
FedEx as to final
delivery. When does Ace assume the risk of loss?
QUESTION 3:
The Computer Purchase (Revisited)
Ace Computer Company ordered ten computers from Gateway. The first five were
delivered to Ace’s
main store two days later, with the second five to be delivered a week later. Two days after
the first
delivery, Ace’s check for payment was dishonored. What options does Gateway have with
respect to the
delivery? How does this affect the transfer of title with respect to the first delivery?
If Ace simply did not pay or otherwise accept the goods (buyer in breach), what options
does Gateway
have?
QUESTION 4:
Yet another Computer Purchase
You ordered a computer with very specific features and capabilities from an expert who
deals with such
features. What kind of warranty should you expect from that expert?