Legal Environment of BUSINESS FINAL EXAM Essay Example | Topics and Well Written Essays - 1500 words

Legal Environment of BUSINESS FINAL EXAM - Essay Example On the other hand, the article contains guarantee for fitness of goods for the right use (Ferrari 43). This implies that the seller of a product should assure the buyer that the product will serve the intended purpose. In this case study, the seller bought software online from Ace Inc. according to Article 2 of the Uniform Commercial Code, the buyer is entitled to enjoy products of merchantable quality and the product should serve the intended purpose (Saxon 93). However, it appears that the buyer has no problem with the quality and performance of the product. The buyer discards the software because the seller has offered it at a higher price than another seller of similar product. Therefore, basing my view on article 2 of the Uniform Commercial Code, I believe John (buyer) has no reason for discarding the software because the seller has met all the requirements as stipulated in the article. John was supposed to examine different prices offered by different sellers in order to decide on where to buy the product. The fact that John bought the similar software from a different company implies that what Ace Inc met the warranties of merchantability and fit for the purpose (Ferrari 71). Also, these warranties apply to John because he bought the software from a company that was operating in the same field of business. According to the law of contract, the buyer owes the seller duty of acceptance of the product and payment of reasonable price (Ferrari 112). Therefore, John should accept the software and pay a reasonable price for the products. In case the buyer feels that the price was unfair, he should petition the court to decide on what the fair price will be in this situation. Question B: sale of goods Contracts The contract is for the sale of goods as stipulated in English Sale of Goods Act 1893 (Saxon 154). A contract for sale of goods involves an offer and an acceptance. In this case study, Ammco made an offer to sell merchandise worth more than $500.00 to Erm a. According to the requirements of the contract of for sale, Erma agreed to purchase the merchandise in writing hence fulfilling the contract requirement that sale of goods exceeding $5 should be in writing (Ferrari 154). The contract involved two parties, the seller and the buyer. In addition, the consideration of a contract for sale of goods should be in monetary value, and this was fulfilled in the case study because Erma agreed to pay more than $500. The contract for the sale of goods determines the moment when transfer of property in goods takes place because this determines when the risk in goods passes to the buyer and remedy available to each party in case the goods are damaged. This contract did not follow the actual procedure of forming a contract. The additional information given by the seller to the buyer constitutes a counter offer hence the contract is voidable at the will of the buyer (Ferrari 187). This implies that the contract will be formed between the buyer and the seller the moment the buyer will accept the new conditions stated by the seller. Should the buyer agree to pay for insurance and cost of freight, then there will be a conclusion of a contract under Cost Insurance and Freight (C.I.F). Under C.I.F contract, the buyer has a right to accept the merchandise only if the merchandise meets the specifications stipulated in the contract. The goods on voyage are at the buyer’s risk since the seller insured the goods on his behalf. However, if the