On October 1, Baker, a wholesaler, sent Clark, a retailer, a written, signed offer to sell 200 pinking shears at $9 each. The terms were FOB Baker's warehouse, net 30, late payment subject to a 15% per annum interest charge. The offer indicated that it must be accepted no later than October 10, that acceptance would be effective upon receipt, and that the terms were not to be varied by the offeree. Clark sent a telegram, which arrived on October 6, and accepted the offer expressly subject to a change of the payment terms to 2/10, net/30. Baker phoned Clark on October 7 to reject the change of payment terms. On the phone, Clark then indicated it would accept the October 1 offer in all respects and expected delivery within 10 days. Baker did not accept Clark's oral acceptance of the original offer. Which of the following is true?
A. Baker's original offer is a firm offer, hence irrevocable.
B. The statute of frauds would preclude the formation of a contract in any event.
C. Clark actually created a contract on October 6. The modifications were merely proposals and did not preclude acceptance.
D. There is no contract. Clark's modifications effectively rejected the October 1 offer, and Baker never accepted either of Clark's proposals.
On Monday, Wolfe paid Aston Co., a furniture retailer, $500 for a table. On Thursday, Aston notified Wolfe that the table was ready to be picked up. On Saturday, while Aston was still in possession of the table, it was destroyed in a fire. Who bears the loss of the table?
A. Wolfe, because Wolfe had title to the table at the time of loss.
B. Wolfe, unless Aston breached the contract.
C. Aston, unless Wolfe is a merchant.
D. Aston, because Wolfe had not yet taken possession of the table.
Bell, by telegram to Major Corp., ordered 10,000 yards of fabric, first quality, 50% wool and 50% cotton. Major accepted the order and packed the fabric for shipment. In the process, it discovered that one-half of the fabric packed had been commingled with fabric that was 30% wool and 70% cotton. Because Major did not have any additional 50% wool fabric, it decided to send the shipment to Bell as an accommodation. The goods were shipped and, later the same day, Major wired Bell its apology, informing Bell of the facts and indicating that the 5,000 yards of 30% wool would be priced at $2 a yard less. The carrier delivering the goods was destroyed on the way to Bell. Who bears the risk of loss?
A. Bell, if the shipping terms were FOB Bell's place of business.
B. Bell, because Bell has title to the goods.
C. Major, because the order was not a signed writing.
D. Major, because it shipped goods that failed to conform to the contract.
Which is the true classification of goods under UCC Article 9?
A. Consumer goods, equipment, farm products, inventory.
B. Consumer goods, instruments, and inventory.
C. Accounts, consumer goods, equipment, inventory.
D. Accounts, equipment, inventory, unextracted minerals.
On January 1, Shemwell Co. signed a security agreement giving Jones a security interest in a crane Shemwell was planning to buy for its business. In exchange for the security agreement, Jones signed a contract to lend Shemwell $10,000 on request. On January 9, Shemwell purchased the crane. On January 15, Jones delivered $10,000 to Shemwell. On January 20, Jones filed the security agreement with the appropriate public officials. Under the UCC, when did Jones's security interest in the crane attach?
A. On January 15, when Jones delivered $10,000 to Shemwell.
B. On January 1, when the security agreement was signed.
C. On January 9, when Shemwell purchased the crane for its business.
D. On January 20, when Jones filed the security agreement.