Essay about Business Law Case Study

2069 Words Oct 23rd, 2011 9 Pages
Business Law
Case Study

In the case presented, Biff Smith, the Chief of Police of the local department ordered a set of bicycles off of a local storeowner, Dirk Right. This was no simple order though, in fact Biff intended on starting a bike patrol unit within the local department. Biff went to Dirks Bicycle shop to place an order. The order was for five mountain bikes to be used for patrol so they had to be custom made in order to sport the police decals. Biff was very familiar with the Schwinn bicycle company so he asked Dirk to order him five “top of the line” bikes at the “best price”. This simple statement implied that Biff not only wanted the bikes but he intended on paying for them as well. So soon after Dirk accepted the deal
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There was also no fraud or deception by Dirk in any way as he was acting on good faith by not adding extra cost to the custom police bikes in any way as a kind gesture to contribute to the community; therefore, selling the custom police bikes at Dirk’s cost, even though he did have the right to charge for additional fees.
The fourth element to consider is competence, or being able to perform and act, having full capacity by meeting all requirements of capacity. The contract must be between competent parties, being Dirk the storeowner and Biff the chief of police. Both Biff and Dirk seemed to understand the agreement they came upon dealing with the custom bikes, no arguments or debating occurred, and as far as the case goes each seemed to be in a healthy state of mind when making these decisions.
Finally, the last element in a contract would be all legality issues involved. It must be made for a lawful objective, which means the contract must be for legal purposes only. The purpose of the agreement is in fact legal which satisfies this element as a contract because the contract was for the legal sale of goods. Also, required by law, a contract used as evidence must be in writing for the sale of goods that are priced at $500 or more under the UCC sec. 2-201. However there is an exception with this case, under the UCC sec 2-201 there are stated exceptions for specially manufactured goods. No writing is

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