“To be negotiable, the instrument must stand alone,” is true of negotiable instruments. 

A statement of intention to do something in the future is an offer.  

One policy reason under Section 2-207 of the UCC, the “battle of the forms” section, is to place responsiblity on merchants to pay attention to the purchase orders they sign. The seller should read the purchase order that has been received and, if it contains conflicting terms on which the UCC provides unfavorable default positions, the seller should refuse to proceed with the transaction—not perform—until a suitable express agreement has been reached.

Through the “means test,” a bankruptcy court can evaluate an individual debtor’s monthly income in recent months is compared to median income in the geographic area where the person lives.  If debtor’s income is below the median income, the debtor is allowed to file Chapter 7, as there is no presumption of bankruptcy abuse.  Otherwise, they file for Chapter 13.

Fraud in the inducement is only valid against an ordinary holder, not a holder in due course.

If contract does not indicate where the goods will be delivered? Then place for delivery will be: ____________________.

Section 2A of the UCC covers any transaction that creates a lease of goods or sublease of goods.

A man by the name of George Hawkins took his son to Dr. Edward McGee and asked him to operate on his son’s hand.  McGee said his son would be in the hospital for three to four days and that his hand would probably heal a few days later.  The son’s hand did not heal for a month. McGee also told the father, “I guarantee if your son has the operation, his hand will be restored 100%.”  

Pete contracts to buy potatoes from Fred at $.50 per pound.  Fred breaches and does not deliver the potatoes.  In the meantime, the price of potatoes has fallen.  Pete is able to buy them on the open market at half the price.  He is better off than if he were to complete the contract with Fred.  Since Pete suffered only a technical injury, he would not be entitled damages if he sued Fred.

Fred promises to give Jean a unique sculpture in exchange for Jean painting Nick’s house, but instead, Fred sells the sculpture to Cloe before Jean begins the job; this act by Fred constitutes  ________________________ which excuses Jean from performing. Once the sculpture has left Fred’s possession, there is no way that Fred can fulfill the promise to give the sculpture to Jean.