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.

---

Definitions:

Competition

The rivalry among businesses to attract customers, increase sales and market share, and achieve a sustainable competitive advantage.

Fosters Efficiency

Encourages or promotes greater productivity and effectiveness in processes or systems.

Monopolistic Competition

A market structure characterized by many firms offering similar but not identical products, allowing for some degree of market power.