Business Law Case Study

2067 WordsOct 17, 20119 Pages
Business Law Case Study In the case presented, Biff Smith, the Chief of Police of the local department ordered a set of bicycles off of a local storeowner, Dirk Right. This was no simple order though, in fact Biff intended on starting a bike patrol unit within the local department. Biff went to Dirks Bicycle shop to place an order. The order was for five mountain bikes to be used for patrol so they had to be custom made in order to sport the police decals. Biff was very familiar with the Schwinn bicycle company so he asked Dirk to order him five “top of the line” bikes at the “best price”. This simple statement implied that Biff not only wanted the bikes but he intended on paying for them as well. So soon after Dirk accepted the deal…show more content…
Therefore Dirks specially ordered custom bikes for the police department upon the request from Biff are considered specially made. The custom bikes were a special order because they contained unique decals displaying “POLICE”. Therefore Dirk can enforce the oral contract against Biff despite the price being an excess of $500, (under Revised article 2). Analyzing the case with all elements in mind, we concluded that a contract was in fact created. Dirk, who is pursuing Biff in court, will put up a case due to the oral contract that was indeed made. In this case there is no need for a written contract because Biff verbally agreed to buy five Schwinn custom police mountain bikes specially ordered by Dirk. For this non-resellable goods exception to apply, the seller, Dirk, must have made a substantial beginning in manufacturing the goods. To show this is true, Dirk went out of his way to create an order for Biff that was special for the Police department, and by doing so, Dirk cannot return/resell the bikes, and he is at a loss of $17,500. The most important factor working in Dirks favor is the letter he received from the local PBA. The end of the letter had a hand written signature thanking Dirk for ordering the bikes. This is hard evidence that a deal was made because the note brings up the agreement for the bikes in writing and is signed by the second party, Biff. Dirk has enough evidence to bring Biff to

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