Author Question: Statute of Frauds. R-P Packaging, Inc, is a manufacturer of cellophane wrapping material. The plant ... (Read 88 times)

Pea0909berry · **on:** Jun 24, 2018

Statute of Frauds. R-P Packaging, Inc, is a manufacturer of cellophane wrapping material. The plant manager for Flowers Baking Co decided to improve the company's packaging of cookies. The plant manager contacted R-P Packaging regarding the possible purchase of cellophane wrap imprinted with designed artwork. R-P took measurements to determine the appropriate size of the wrap and submitted to Flowers a sample of wrap conforming to the measurements, along with a sample of the artwork to be imprinted. After agreeing that the artwork was satisfactory, Flowers gave a verbal order to R-P for the designed cellophane wrap at a price of 13,000. When the wrap was tendered, although it conformed to the measurements and design, Flowers complained that the wrap was too short and the design off-center. Flowers rejected the shipment. R-P sued. Flowers contended that the oral contract was unenforceable under the Statute of Frauds. Discuss this contention.

Question 2

Cook instructs Chan, her agent, to buy a van for her business. Chan contracts for a van with a third party, who knows that Chan is an agent. If Cook does not like the van and refuses to pay for it, the seller may sue:
a. Chan because she did not have authority to enter into a final contract without permission b. Cook because Chan has actual authority to make a contract on behalf of her principal
c. Cook if Chan signed the contract expressly on behalf of Cook; that is, the principal was revealed before the contract was made
d. Cook but only if Chan has apparent authority to enter into the contract e. no one; there was no valid contract

blazinlyss · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Statute of Frauds
Under the Statute of Frauds, any contract for the sale of goods priced at 500 or more must be in writing, or come under an applicable exception, to be enforceable. One such exception deals with oral contracts for the sale of goods to be specially manufactured (goods not suitable for sale to others in the normal course of the seller's business). The law provides that if the seller has made a substantial beginning in the manufacture of the specially ordered goods, no writing is required. Here, the cellophane wrapping material was manufactured to size and had unique artwork imprinted thereon. The goods had been completely manufactured. Therefore, Flowers cannot raise the Statute of Frauds as a defense against R P's breach of contract action.

Answer to Question 2

b