Interstate Commerce and UCC – LAW 421

Topics about the Interstate Commerce and UCC

The following business law study guide covers topics related to the Interstate Commerce and Uniform Commercial Code.

Two merchant companies have entered into a contract for the sale of goods

Two merchant companies have entered into a contract for the sale of goods.  They have had no prior dealings among themselves that may establish a course of conduct.  The UCC will provide “gap fillers” to supply missing terms unless

​​ they have failed to specify the quality or grade of the goods to be delivered.

Explanation: The UCC contains a set of boilerplate clauses that are known as gap fillers to address missing contract terms. In this case, the only one not covered is specific quality or grade of the goods.

The state of Kansas has enacted a law requiring all commercial trucks

The state of Kansas has enacted a law requiring all commercial trucks driving on Kansas roads to have a special type of mud flaps installed. These mud flaps have been said to make driving in the rain significantly safer, although absolutely conclusive data is not available. Any truck entering Kansas without these installed will be subject to a significant fine and substantial delay. The cost for purchase and installation of these flaps is high, at around $5,000 per truck. This Kansas law

​​ ​is an undue burden on interstate commerce.

Explanation: Kansas lies in the heart of America and thousands of interstate trucks cross its borders daily. Much of this traffic has nothing to do with Kansas, but is traversing from coast to coast. Without significant evidence supporting the safety requirement, this action represents an excessive burden on interstate commerce.

The UCC will permit an incomplete or slightly ambiguous contract to be enforced using which of the following criteria?

​​ Past commercial conduct

Explanation: Past conduct is a major component of UCC rules and it enables parties to execute agreements based on their history. If Joe’s Farm has been delivering wheat to Jake’s Bakery for the last 5 years, this history could enforce a contract when there is no explicit written language.

With regard to the legal element of consideration in a sales contract the UCC differs from the common law in that

​​ consideration in a sales contract may be modified without additional consideration under certain circumstances.

Explanation: The Universal Commercial Code UCC allows a contract to be modified without additional consideration as long as it is entered in good faith. This situation could occur if two parties agree that a contract is not mutually beneficial and agree to change the original balance of consideration between the parties.

 
  • Student: Hanzel Wolff
  • Textbook: Law 421 Final Exam
  • Course: Business Law
 

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