Case Scenario: Grocery, Inc. Essay

2325 words - 9 pages

Scenario: Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Grocery has written contracts with many different vendors to purchase the products they sell in their stores. Vendors range from individuals to international corporations. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.Assignment: Using the scenario above, give detailed answers to the following questions:1. Does Article 2 of the Uniform Commercial Code (UCC) apply to the contracts between Grocery and its vendors? Do common law contracts apply? Explain, in detail, why or why not. Your answer should compare and contrast common law contracts and UCC Article 2 contracts.Article 2 of the Code applies only to transactions in goods. The sale of goods is the transfer of ownership to tangible personal property in exchange for money, other goods or the performance of services. The law of sales of goods is codified in Article 2 of the Uniform Commercial Code While the law of sales is based on the fundamental principles of contract and personal property it has been modified to accommodate current practices of merchants. Therefore, the situation depends on whether or not a contract is for the sale of goods. If it is not, then the principles of common law that were discussed in Part 3, Contracts, apply. If the contract is one for the sale of goods, then the Code applies.2. Grocery contracted with Masterpiece Construction to renovate the store on Main Street in My Town. Masterpiece, unable to complete the renovation within the six-month time limit due to a sudden increase in jobs, sub-contracted the entire job to Build Them To Fall. Grocery was unaware of the sub-contract. When Grocery realized (due to the poor quality of work) that Build, not Masterpiece, was handling the renovation, Grocery petitioned the court for an injunction and then sued Masterpiece for breach of contract and specific performance. Masterpiece argued that it had a right to delegate the duties of the contract, or in the alternative, to discharge the contract due to commercial impracticability. Who wins? Explain your answer.In such a case as this one, Grocery would win a suit for specific performance but not necessarily for breach of contract. The only situation that would restrict Masterpiece from delegating the duties to another company is if the actual contract specified that Masterpiece had to perform the work. If the contract did specify that Masterpiece had to perform the work, they would be responsible for breach of contract; otherwise, they would have the right to delegate the work to a third party without penalty. Though Masterpiece might have had the right to sub-contract the renovation to another company, it does not release Masterpiece from liability. When a delegatee (Build) accepts an assignment from a delegator...

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