Tuesday, June 17, 2025

Peel Back the Onion

One thing about the MBE, it's going to test the exceptions. Think of studying for the MBE like peeling back an onion (and not just because of the crying thing). The first layer is the general rule, and sometimes that's as far as you'll need to go. But, mostly, you'll need to peel back layer 2 (the exception), layer 3 (the exception to the exception), etc. Most will know that under the UCC, a contract for the sale of goods priced at $500 or more is not enforceable without a writing. Layer 1. But instead of just knowing that, you need to know when a contract priced at $500 or more is enforceable without a writing at the time of agreement (deeper layers). There are 4 circumstances: ~if a merchant sends a written confirmation memo to another merchant stating the terms of the previous oral agreement, and the recipient does not object to that written memo within 10 days of receipt. ~if the goods are specially manufactured for the buyer, and not suitable for sale to others, provided that there has been a substantial beginning to the manufacturing of the goods, or substantial commitments for their procurement. ~if a party against whom enforcement is sought admits in pleadings, testimony, or etc., that a contract has been entered (not enforceable beyond the quantity admitted). ~if the goods were received and accepted, or if payment has been made and the goods were accepted. Under none of the 4 above circumstances is a writing required at the time of agreement even if the agreement is for goods priced at $500 or more. Peel back the 🧅.

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