Receive compensation for the shirts already produced

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Reference no: EM131153165

Let’s consider another scenario to test our understanding of the UCC Statute of Fraud for sales of goods over $500. Let’s assume that we have a T-shirt manufacturer who enters into an oral contract to produce 500 custom printed T-shirts for $5 per shirt. The custom printing is to have a distinctive photo of a race car rally for the specific date of August 31, 2013, and is intended to be sold by the rally sponsors as a souvenir. After 250 T-shirts are manufactured, the rally sponsors call up the T-shirt manufacturer and tell him that they no longer want the T-shirts. When the T-shirt manufacturer complains and says they have a contract, the rally sponsors reply that the contract was not in writing and is barred by the UCC Statute of Frauds. Is there an exception that would cover this situation and allow the T-shirt manufacturer to receive compensation for the shirts already produced? (Chapter 18).

Reference no: EM131153165

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