Case Scenario: Grocery, Inc.

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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…show more content…
Smooth did not ask Jeff how old he was; the salesman assumed he had reached the age of majority. Jeff paid the down payment and signed the contract stating that he would make payments of $200 each month. Six months later Jeff lost his job and could no longer make the payments. Jeff took the car back to Smooth and said he wanted to cancel the contract and that he wanted his money back. What are the possible outcomes? Explain your answers. As a minor, Jeff is entitled cancel the contract by disaffirming it and receiving the amount he paid for the car in exchange for returning the car back to Smooth Sales Used Cars. As per the textbook, "Upon disaffirmance, each party has the duty to return to the other any consideration that the other has given. This means that the minor must return any consideration given to him by the adult that remains in his possession." Jeff should receive his down payment and $1200 back from Smooth Sales Used Cars. Since the car is not considered a necessary, the following law for minor does not apply. "The minor's recovery of the full purchase price is subject to a deduction for the minor's use of the consideration he or she received under the contract, or the depreciation or deterioration of the consideration in his or her possession." Necessaries are basics things needed for survival and not supplied by the minor's parents. Examples of necessaries are food, clothing, shelter, medical care, tools of the minor's trade,

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