Reference no: EM133638313

Assignment:

Don and Michael are merchants who have done business for years. One day, he calls Michael with an offer he can't refuse. He wants to sell Michael 12,000 cans of "Mr. Ed's" horsemeat monthly for $1 per can for 12 months. Each delivery would consist of 1,000 cans. He leaves Michael a message and tells him that unless he explicitly says "no", he'll ship the cans. Michael never calls him back and receives the horsemeat and puts it on the shelf in his store.

Two months later, Mario comes in with a can of horsemeat and tells Michael it is really moose meat. It, oddly enough, tastes like the "Bullwinkle" brand. (Moose meat). Michael calls Don to tell him about the mistake. Don says, "Let's cancel the old deal, and I'll send you a new shipment and guarantee you a new price for a year of 75 cents per can?" Michael agrees, but when the new horsemeat arrives, it's the "Hi Ho Silver" brand, which has been banned in some jurisdictions for making people sick. Micheal tells Don he is not going to pay him. Discuss the relevant legal issues under the Uniform Commercial Code and traditional contract law.