Fountain Products Case
Issue #1
The issue is whether the UCC applies to the offer made by Fountain Products.
Rule
The UCC governs transactions in goods, which are all things that are tangible and movable at the time of identification to the contract for sale, and the common law governs transactions involving services provided by professionals. When there is a mixed contract involving both goods and services, most courts use the predominate factor test to determine if the contract is predominately for a good or a service.
Analysis
Here, the UCC applies-not the common law-because Fountain Products offered to sell Sparkle portable drinking fountains. Portable drinking fountains are both tangible and moveable at the time of identification to the contract for sale. …show more content…
In the documents, it specifically states “We have 200 portable drinking fountains (Model number A-4230) available at $100 each for October delivery.” In the offer Fountain Products not only conveyed their inventory, but quoted a price for delivery, displaying their commitment to the offer. The offer also stated “this offer will remain open until October 1, 2015,” conveying that Sparkle had a specific time frame to accept the offer, in which Fountain Products would honor the acceptance, displaying that Fountain Products was bound by contract. Therefore the offer made by Fountain Products was committed.
Rule
The offer must be definite in its terms, meaning all the important terms are specified in the offer.
Analysis
Here, the offer was was definite because Fountain Products included subject matter, price, and quantity in their offer to Sparkle Inc. The written letter to Sparkle stated “We have 200 portable drinking fountains (Model number A-4230) available at $100 each for October delivery.” This statement included a price of $100 and a quantity of 200 portable drinking fountains. The subject matter was the model number A-4230, which was the portable drinking fountain. The offer made by Fountain products was definite in its …show more content…
Fountain Products is a manufacture of portable water fountains, meaning they know how to create the good and surely know how it works. Fountain Products manufacturing the goods conveys they are skilled in the good because they make it themselves. The only way for them to make money off their skills, is to deal in the very goods they make, thus making them a Merchant.
Rule
A Firm Offer must be signed, meaning any symbol executed or adopted by party with present intention to authenticate writing.
Analysis
Here, the offer was signed because Fountain Products included a letterhead in the document they mailed to Sparkle Inc. A letterhead includes a companies letterhead and address printed on stationary. When Fountain Products printed a letterhead on the document, it substantiated the document was signed.
The issue is whether the UCC applies to the offer made by Fountain Products.
Rule
The UCC governs transactions in goods, which are all things that are tangible and movable at the time of identification to the contract for sale, and the common law governs transactions involving services provided by professionals. When there is a mixed contract involving both goods and services, most courts use the predominate factor test to determine if the contract is predominately for a good or a service.
Analysis
Here, the UCC applies-not the common law-because Fountain Products offered to sell Sparkle portable drinking fountains. Portable drinking fountains are both tangible and moveable at the time of identification to the contract for sale. …show more content…
In the documents, it specifically states “We have 200 portable drinking fountains (Model number A-4230) available at $100 each for October delivery.” In the offer Fountain Products not only conveyed their inventory, but quoted a price for delivery, displaying their commitment to the offer. The offer also stated “this offer will remain open until October 1, 2015,” conveying that Sparkle had a specific time frame to accept the offer, in which Fountain Products would honor the acceptance, displaying that Fountain Products was bound by contract. Therefore the offer made by Fountain Products was committed.
Rule
The offer must be definite in its terms, meaning all the important terms are specified in the offer.
Analysis
Here, the offer was was definite because Fountain Products included subject matter, price, and quantity in their offer to Sparkle Inc. The written letter to Sparkle stated “We have 200 portable drinking fountains (Model number A-4230) available at $100 each for October delivery.” This statement included a price of $100 and a quantity of 200 portable drinking fountains. The subject matter was the model number A-4230, which was the portable drinking fountain. The offer made by Fountain products was definite in its …show more content…
Fountain Products is a manufacture of portable water fountains, meaning they know how to create the good and surely know how it works. Fountain Products manufacturing the goods conveys they are skilled in the good because they make it themselves. The only way for them to make money off their skills, is to deal in the very goods they make, thus making them a Merchant.
Rule
A Firm Offer must be signed, meaning any symbol executed or adopted by party with present intention to authenticate writing.
Analysis
Here, the offer was signed because Fountain Products included a letterhead in the document they mailed to Sparkle Inc. A letterhead includes a companies letterhead and address printed on stationary. When Fountain Products printed a letterhead on the document, it substantiated the document was signed.