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Donzui Marine Corporation is a manufacturer of light speed boats; a man named Mr. Collins was one of their sales representatives. In 1987 Mr. Collins met a man named Mr. Wallach at marine trade show, Wallach is the owner of the retail boat outlet Wallach Marine Corp. They started talking business and Collins offered Wallach a Donzi dealership, which would allow him to purchase and resell the speedboats that Donzi Manufactured. Wallach was sold and he continued to then write a $50,000 check for a down payment. No written contract was present; it was simply an oral agreement. Wallach ordered several speedboats (Cheeseman, 2013). Shortly after Donzi terminated the contract because he found another dealership that was willing to pay more for the boats. Wallach immediately sued Donzi for breach of contract.
Issue
The issue of this case study is simply whether or not the contract was enforceable under the UCC stipulations.
Rule of Law The revised article 2 of the UCC states that any contracts concerning a monetary amount of $5000 or more, must be in written form. There are three exceptions to the previously stated rule; if the goods were specially ordered to a specific preference, Admissions in pleadings or court, and Part acceptance (Cheeseman, 2013).
Application
The application of the law relies heavily on the details. According to the UCC Statute of frauds section 2-201 “all contracts for the sale of goods costing $5000 or more must be in writing” (Cheeseman, 2013). As mentioned above there are certain exceptions to section 2-201 of the UCC. In this case, the speedboats ordered were in no way shape or form altered to make the specially manufactured goods. The second exception would require for Donzi to admit that there was a verbal agreement on a certain enterprise contract length to a judge, which did not happen given the information in the book. The third exception, part acceptance, is a gray area because the full case online states that Wallach
Issue
The issue of this case study is simply whether or not the contract was enforceable under the UCC stipulations.
Rule of Law The revised article 2 of the UCC states that any contracts concerning a monetary amount of $5000 or more, must be in written form. There are three exceptions to the previously stated rule; if the goods were specially ordered to a specific preference, Admissions in pleadings or court, and Part acceptance (Cheeseman, 2013).
Application
The application of the law relies heavily on the details. According to the UCC Statute of frauds section 2-201 “all contracts for the sale of goods costing $5000 or more must be in writing” (Cheeseman, 2013). As mentioned above there are certain exceptions to section 2-201 of the UCC. In this case, the speedboats ordered were in no way shape or form altered to make the specially manufactured goods. The second exception would require for Donzi to admit that there was a verbal agreement on a certain enterprise contract length to a judge, which did not happen given the information in the book. The third exception, part acceptance, is a gray area because the full case online states that Wallach
Cited: Cheeseman, H. (2013). Business Law . Pearson. Supp, F. (1987). Wallach Marine Corp. v. Donzi Marine Corp. Retrieved from Leagle.com: http://www.leagle.com/decision/19871513675FSupp838_11393