Ready Construction Buys a Computer System from Ace That Ace

question 364

Multiple Choice

Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready. Ready should:

• A) realize that the agreement is for the sale of goods, and so settle on the best terms possible
• B) try to characterize the agreement as a service contract
• C) show that the value of the system is greater than the value of the service
• D) define itself as a merchant under Article 2 of the UCC
• E) none of the other choices

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Definitions:

Exemplar Theory

A psychological theory suggesting that people categorize objects and concepts based on the comparison to typical instances or examples stored in memory.

Knowledge-based View

A perspective or theory emphasizing the role of knowledge in organizational capabilities and competitive advantage.

Classical View

The traditional perspective in various fields that emphasizes foundational principles and methodologies established through historical precedents.