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Charlie of Purina Dog Chow Company visited Mary, vice president of Bide A Wee Dog Centers to solicit an offer of purchase of dog food products manufactured by his company Mary was impressed by the presentation and told Charlie that her company would purchase
5,000 dog food units at $ 50 each with delivery in 90 days at a place to be determined. Several days later, Charlie sent Mary a letter by certified mail summarizing their discussion and the terms. On receipt of the letter, Mary threw it out. 90 days later, Charlie telephoned Mary and requested to know where to make the delivery. Mary said: " What are you talking about? I never signed any agreement. Go tell it to Judge Sam. We will not accept any delivery at that price!" NOTE: The present market price for comparable product is $30.
Questions:
What is the status of the parties?
Are the people involved merchants? Why? How does the UCC define?
Was there an offer? Acceptance? Is there a special rule that governs this scenario? What does the UCC require in general for contracts with value in excess of $500? Damages?
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