Essay on Case Senario

2965 Words May 11th, 2007 12 Pages
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
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If Build and Grocery both agree to the novation, Masterpiece would have no further obligation under the contract and Grocery would have to hold Build responsible for performance.

3. At the end of the summer, Jeff Fresh had earned enough money to put a down payment on a car. He decided to continue working part time during school to earn money for the car payments. Jeff purchased a car from Smooth Sales Used Cars. 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.

Because Jeff is a minor, he can disaffirm the contract. Once the contract is disaffirmed each party has the duty to return to the other any consideration that the other has given. According to the Traditional Rule if Jeff is unable to fully return the consideration that was given to him he is not obligated to pay Smooth Sales Used Cars for any depreciation of the vehicle. Therefore in exchange for returning the car back to Smooth Sales Used Cars Jeff should receive his down payment and $1200. However, in some…

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