Bar Exam and Chill
Episode Overview In this episode, we break down the July 2024 Uniform Bar Exam (UBE) Contracts Multistate Essay Examination (MEE) question. This hypo focuses on a custom-made neon sign, a $5,000 price tag, and a surprise substitute manufacturer. We explore the nuances of UCC Article 2, the Statute of Frauds, and the often-misunderstood rules of delegation. Key Discussion Points * Governing Law: Why the UCC? * Defining "Goods" under UCC § 2-105. * Why a custom-built sign is a good, not a service. * Formation: The Oral Agreement * The "Essential Terms" for the UCC (Quantity is King). * How mutual assent and consideration were established during a simple meeting. * The Statute of Frauds (SOF) & The "Custom" Exception * The $500 rule (UCC § 2-201). * The 3-Part Test for Specially Manufactured Goods: 1. Is it custom for the buyer? 2. Is it unsellable to others? 3. Has "substantial beginning" occurred? * Why the "unique name of the store" makes this an open-and-shut case for the manufacturer. * Delegation of Duties: Art vs. Industry * The general rule: Most duties are delegable. * The "Substantial Interest" Exception: When can you insist on the original party? * The "Price vs. Skill" Factor: If you hired them because they were cheap (low advertised prices), you usually can’t claim you hired them for their "unique artistic genius." * Conforming performance: Why the store owner must pay if the sign is perfect. Key Takeaways for Bar Examinees 1. Don't overthink "Art": In the UCC world, if it can be measured against objective specifications, it’s usually delegable. 2. Repudiation Timing: The Specially Manufactured Goods exception requires the manufacturer to start before the buyer cancels. 3. The "Writing" isn't always required: Learn the exceptions to the SOF cold—they are the most tested areas in Contracts MEEs. Relevant Statute Citations * UCC § 2-105: Definitions (Goods). * UCC § 2-201: Statute of Frauds & Specially Manufactured Goods. * UCC § 2-210: Delegation of Performance; Assignment of Rights.
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