Case Study V Bus|Quick homework help

Instructions

Scott Restaurant Company purchased a commercial freezer from Big Refrigeration Company. The written contract between Scott Restaurant Company and Big Refrigeration Company provided that Scott Restaurant Company would pay Big Refrigeration Company $5,000 for an Arctic Air commercial freezer and an additional $1,000 for delivery and installation of the commercial freezer. Write a case study that considers the questions below.Is this contract subject to Article 2 of the Uniform Commercial Code (UCC)? Why, or why not? Does it make a difference if Scott Restaurant Company or Big Refrigeration Company are merchants? Why, or why not? Next, consider that Big Refrigeration Company delivered an Admiral Craft commercial freezer to Scott Restaurant Company on the date the contract required but, before the freezer was installed, a representative of Scott Restaurant Company recognized that the freezer that was delivered was not the brand that the contract specified. Include responses to the questions below in your case study.

• Did Big Refrigeration Company breach the contract?
• Why, or why not?
• If there was a breach of contract, what can Scott Restaurant Company do about the breach of contract?

SOLUTION

Case Study: Scott Restaurant Company v. Big Refrigeration Company

Background:
Scott Restaurant Company (SRC) entered into a written contract with Big Refrigeration Company (BRC) for the purchase of an Arctic Air commercial freezer. The contract provided for a purchase price of $5,000 for the freezer, and an additional $1,000 for delivery and installation of the freezer.

Issue:
The primary issue in this case is whether the contract between SRC and BRC is subject to Article 2 of the Uniform Commercial Code (UCC). Additionally, it is also important to determine whether it makes a difference if SRC or BRC are considered merchants under the UCC.