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American Contract Law for a Global Age, 2017a

American Contract Law for a Global Age, 2017a

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Problem 10.3<br />

On June 1, the sales director of Nanakuli Asphalt sent an email message to<br />

Star Paving saying as follows: “Following up on our conversation yesterday on the<br />

Montecito job, we are offering you 1,500 cubic yards of HMA asphalt (approx. 3,000<br />

tons) at $75/ton, loaded on your trucks at our facility. We will keep this offer open<br />

until June 7. Please let us know ASAP. Thanks <strong>for</strong> your business!” The sales director’s<br />

e-mail gave his name on the “from” line but did not contain an e-mail signature block,<br />

and the body of the email contained the Nanakuli logo and his electronic business<br />

card. On June 4, Nanakuli’s sales director sent a new email, saying, “We regret that<br />

a sudden price increase from our oil supplier means we have to withdraw our quote<br />

of June 1. We can provide the asphalt, but the new price will be $82/ton. Sorry <strong>for</strong><br />

any inconvenience.” Star gets this shortly after it is sent. Nevertheless, on June 6,<br />

Star sends a message purporting to accept the June 1 offer. Nanakuli refuses.<br />

Star ultimately pays the $82/ton price, but later sues <strong>for</strong> a refund of $7/ton on<br />

the 3,000 tons purchased, claiming Nanakuli made an irrevocable offer that it<br />

accepted, and there<strong>for</strong>e that there was a contract at $75/ton. What result under the<br />

UCC? Consider UCC §§ 2-204, 2-205, and 2-206 in connection with this problem.<br />

______________________________________________________________________________<br />

194 CHAPTER IV: ALTERNATIVE REGIMES

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