Flower Shop, Inc. buys flowers from a grower, Flower Grower, LLC. Grower plans to raise the price of roses from $1.00 to $3.00 per stem, effective May 1″. On April 30th, Flower Shop learns of the upcoming price increase from a Grower sales representative. Shop immediately sends a fax ordering 1000 roses on April 30th at $1.00 per stem. Previously, Shop had ordered 120 flowers each time. On May Su’, Grower sends Shop a shipment of 50 roses with Grower’s standard invoice stating that prices are determined at the time of shipping. Grower adds that it will only charge Flower Shop $1.00 per stem for the 50 flowers because Shop is a good customer. The remaining 950 will be shipped on May 10th at the current price of $3.00 per stem.
Shop demands that Grower ship the additional 950 roses at $1.00 per stem.
§ 2-206. Offer and Acceptance in Formation of Contract. (1) Unless otherwise unambiguously indicated by the language or circumstances (a) an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances; (b) an order or other offer to buy goods for prompt or current shipment shall be construed as inviting acceptance either by a prompt promise to ship or by the prompt or current shipment of conforming or non-conforming goods, but such a shipment of non-conforming goods does not constitute an acceptance if the seller seasonably notifies the buyer that the shipment is offered only as an accommodation to the buyer. (2) Where the beginning of a requested performance is a reasonable mode of acceptance an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance.
ANALYSIS Using the language of the statute, UCC 2-206, discuss whether there was a valid contract for the 950 roses at $1.00 a stem. Discuss offer and acceptance. Discuss the consequences of § 2-206 (b). Write your answer on the lined paper.
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