Case Scenario: Grocery, Inc.
Scenario: Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Grocery has written contracts with many different vendors to purchase the products they sell in their stores. Vendors range from individuals to international corporations. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.
Assignment: Using the scenario above, give detailed answers to the following questions:
1. Does Article 2 of the Uniform Commercial Code (UCC) apply to the contracts between Grocery and its vendors? Do common law contracts apply? Explain, in detail, why or why not. Your answer should compare and contrast common law contracts and UCC Article 2 contracts.
Article 2 of the Code applies only to transactions in goods. The sale of goods is the transfer of ownership to tangible personal property in exchange for money, other goods or the performance of services. The law of sales of goods is codified in Article 2 of the Uniform Commercial Code While the law of sales is based on the fundamental principles of contract and personal property it has been modified to accommodate current practices of merchants. Therefore, the situation depends on whether or not a contract is for the sale of goods. If it is not, then the principles of common law that were discussed in Part 3, Contracts, apply. If the contract is one for the sale of goods, then the Code applies.
2. Grocery contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the six-month time limit due to a sudden increase in jobs, sub-contracted the entire job to Build Them To Fall. Grocery was unaware of the sub-contract. When Grocery realized (due to the poor quality of work) that Build, not Masterpiece, was handling the renovation, Grocery petitioned the court for an
Assignment: Using the scenario above, give detailed answers to the following questions:
1. Does Article 2 of the Uniform Commercial Code (UCC) apply to the contracts between Grocery and its vendors? Do common law contracts apply? Explain, in detail, why or why not. Your answer should compare and contrast common law contracts and UCC Article 2 contracts.
Article 2 of the Code applies only to transactions in goods. The sale of goods is the transfer of ownership to tangible personal property in exchange for money, other goods or the performance of services. The law of sales of goods is codified in Article 2 of the Uniform Commercial Code While the law of sales is based on the fundamental principles of contract and personal property it has been modified to accommodate current practices of merchants. Therefore, the situation depends on whether or not a contract is for the sale of goods. If it is not, then the principles of common law that were discussed in Part 3, Contracts, apply. If the contract is one for the sale of goods, then the Code applies.
2. Grocery contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the six-month time limit due to a sudden increase in jobs, sub-contracted the entire job to Build Them To Fall. Grocery was unaware of the sub-contract. When Grocery realized (due to the poor quality of work) that Build, not Masterpiece, was handling the renovation, Grocery petitioned the court for an
References: Business Law: The Ethical, Global, and E-commerce Environment (12th ed.). Jane P. Mallor, A. James Barnes, L. Thomas Bowers, & Arlen W. Langvardt McGraw Hill, 2004 Burr Ridge, IL University of Phoenix Material: Case Scenario: Grocery, Inc, Susan Brown Parker. Retrieved from http://www.phoenix.edu