1. The Uniform Commercial Code (UCC) is a unified set of statutes designed to govern almost all of these transactions: Real Estate Purchases Commercial Transactions Employment Contracts 2. The term “express contract” only applies to written contracts. True False 3. The “Statute of Frauds” provides that certain contracts must be in writing to be enforceable. True False 4. Which of the following is NOT an exception to the UCC rule that contracts for the sale of goods of $500 or more must be in writing: Specially manufactured goods that cannot be resold easily Admissions in Court Executed Agreements Oral contracts between merchants with no written confirmation required 5. The parol evidence rule provides that oral statements made before signing a written contract may always be used in court to change or contradict the terms of the written contract. True False
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Read the Ace Heating and Cooling scenario in your text and answer the following questions:
a. Under UCC 2-302, who has the best chance of getting out of the contract due to unconsionability? b. The symbol for justice features a woman wearing a blindfold illustrating that the law should be applied the same way regardless of who the parties are. Does the UCC rule seem to contradict this? Which approach do you think is more ethical? c. Note that both Glamour and Shady Rest are businesses, and courts rarely find that contracts between two businesses are unconscionable. The rationale is that a business is a sophisticated entity, familiar with transactions and able to protect itself. Do you think Glamour and Shady Rest are in a comparable position in regard to this contract? Why or why not?
Guided Response: Respond to at least two of your classmates, explaining your position and why you agree or disagree with their comments. Do you think the contracts are fair or unfair considering the parties had a disproportionate ability to bargain? Under UCC Section 2-302 the court has the discretion to find the contract unconscionable. Do you think this is a good approach? What other methods to resolve this issue is appropriate?
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Jermaine Byrant
Nicole Johnson
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