Week 2: Case Study Exercise
Read Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61 and post a draft case study to the discussion board. Identify the Facts, Issue, Holding, Reasoning and Disposition. Case study #1 will be due week 3. This exercise will help you work through the reading a case prior to receiving a grade. Use the LEXIS NEXIS database through the Webster library to access the case.
Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61
Rush Johnson Farms Inc., brought suit against Missouri Farmers Association Inc., (MFA) for $4,094.60 which Johnson claimed to be the balance due for soybeans sold to MFA. This case presents for the first time in Missouri the question of…show more content… In addition, he argued that the contract involved was oral and could not be proven under the Uniform Commercial Code (UCC) 400.2-201 since it entailed the involvement of above $ 500 and was not in writing confirmed by him. On the other hand, the Missouri Farmers Association countered the arguments of Johnson by stating that Johnson was involved as a merchant according to the code definition and the oral contract became admissible under the subsection 2 of 400.2-201.
Issues in the Case
In this case, there are two issues that emerge; the first entails as to whether Johnson, who is a farmer should be treated as a merchant according to the definition of the Universal Commercial Code. The other issue that emerges in the case concerns as to whether the oral contract made between the two parties of selling 600 bushels at the price of $ 4.02 should constitute a binding contract.
Johnson had testified that he was under the ownership of farms in two counties of Missouri. Furthermore, the proof indicated that Johnson owned a farm under a partnership agreement with Baer Andrew, who was actually responsible for the real farming operations carried out on the land belonging to Johnson and the partnership land. Johnson further testified that he had made soya bean sales to elevators for several years, although it emerged that this was the first time he had made bean sales to the Missouri Farmers