Uniform Commercial Code 1. Supplier delivers material per agreed contract to Contractor on designated date. Contract stated that payment was COD (cash on delivery). The day after, the contractor inspects the materials and finds that 30% is damaged and unusable. Can the contractor ask for replacement or refund to the supplier? Explain your answer. 2. Contractor negotiates verbal contract with window Supplier. Contract is worth over $100,000, UCC and Statute of Frauds state that contract for goods over $500 needs to be in writing. What conditions can make the contract enforceable? Discharge 1. Julius, a manufacturer of carpet, contracted to supply carpet for a new office building. When Julius's factory burned, he failed to supply any, and the contractor sued. Is Julius excused from performance? 2. Theresa hired Contractor to construct a large office building. Theresa's duty to pay Contractor was conditioned on receipt of a statement from her architect that the building complied with the terms of the contract. Contractor completed the building but used the wrong color fixtures in the bathrooms. The architect refused to approve the work, but is willing to approve if contractor discounts this portion of the work and Theresa accepts. Contractor submits a revised lower price, architect accepts and Theresa pays. What type of discharge is this? Remedies 1. What is the difference between a legal remedy and an equitable remedy? 2. What types of remedies are there, and what purpose does each serve? 3. What must be shown if liquidated damages are to be allowed? 4. Buyers contracted to purchase a house being constructed by Contractor. The contract contained this clause: "Contractor shall pay to the owners or deduct from the total contract price $100.00 per day as liquidated damages for each day after said date that the construction is not completed and accepted by the Owners and Owners shall not arbitrarily withhold acceptance." Testimony established the rental value of the home at $400-$415 per month. Is the clause enforceable