Week 6 Activity

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School

University of Maryland *

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Course

380

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

3

Uploaded by CorporalOstrich1890 on coursehero.com

Report TO: Winnie James, Ralph Anders FROM: Chrissy Farley RE: Clean Sales Contracts DATE: February 20, 2024 Executive Summary Pros, a local company emailed Clean about a recent purchase of their product. Clean, however, did not respond to the email but did deliver the product on time. Under the UCC Clean not responding to the email made the contract null and void. Pros is obligated to inspect, accept, and make payment on the product when the seller delivered. Clean being the seller is obligated to make timely deliveries of their products. 1. Under the UCC, Clean and Pros did not create a contract. Clean received an email from Pros to make a purchase of product, with price, shipment date, and location of delivery. Clean did not respond to the email to confirm the purchase but continued with the delivery of goods. Under the UCC, this sale of products is not a legal contract. One important part for the contract to be valid would be the offer and acceptance. There was no acceptance from Clean to confirm the order so there was not agreement reached. Without mutual agreement from both parties, there can not be a contract (Mayer, 2012). 2. The rights and obligations of Pros following the inspection. The duty of the buyer is inspection, acceptance, and payment (Mayer, 2012). The buyer’s duty began when the product was delivered. Section 2-513 of the UCC states the buyer’s
Learning Activity Week 6 BMGT 380 right to inspect goods. Because Clean was delivering the products, the buyer may inspect the products after arrival. The expense of the inspection comes from the buyer but if the products are not what was expected or purchased the expenses can be recovered from the seller (Cornell Law School, n.d.). UCC requires “perfect tender” from the seller, the buyer has the right to refuse the delivery. The buyer may accept the goods by words, silence, or action under section 2-606 of the UCC (Mayer, 2012). Section 2-601 states that a rejection is allowed if the seller failed to make the perfect tender (Mayer, 2012). 3. The right and obligations of Clean following delivery and Pro’s inspection of the goods. The general duty of the seller is to make a timely delivery of goods under UCC section 2- 301 and 2-309 (Mayer, 2012). The email stated the delivery would be by April 1 st , and Clean made the delivery on that date. After the inspection of the products, Pros decided the goods were non-conforming. Under the UCC, the seller has an obligation to fix the problem if the buyer rejects the products since the products did not meet the contract. The seller can exchange or replace the product in a timely manner. 2
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