An Example of the "Course of Dealing" Concept That Courts

question 34

Multiple Choice

An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:

• A) Steven and Michelle have been involved in contracts together for over 5 years. Steven maintains the sign for Michelle's restaurant. Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle. Michelle has always paid the bill promptly.
• B) Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country. In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors.
• C) Bob sees an ad in the local paper for heritage flower seeds sold by Mel. He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as possible but does not inquire as to price. Mel sends him the seeds and the invoice.
• D) None of the above.

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Definitions:

Forward Integration

A business strategy where a company controls the distribution or the supply chain for its products.

Acquires Distributors

The process by which a company takes ownership of distribution channels or companies to enhance its supply chain effectiveness and market reach.

Stability Strategy

A business approach aimed at maintaining the current status quo in terms of growth rate, revenues, and operational scale, often used in predictable environments.

Maintain Current Operations

The ongoing efforts to keep a business's regular activities running smoothly and efficiently.