Part 3- Contracts, Chapter 16: Writing, Doc 4 - Edubirdie

University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

458

Pages:

2
Author:

bratrochanter

The case of Green Garden Packaging Co., Inc. v. Schoenmann Produce Company, Inc. involves a dispute over whether an alleged oral contract for the sale of goods is enforceable under the statute of frauds. Green Garden, a producer of fresh-cut vegetables and ready-made food items, claimed that Schoenmann, a distributor, agreed to exclusively purchase Green Garden’s products for its contract with Houston Independent School District (HISD). Green Garden argued it provided Schoenmann with confidential product information and samples based on this agreement. However, Schoenmann did not fulfill the alleged agreement, instead sharing Green Garden’s proprietary information with other suppliers and not purchasing from Green Garden. Green Garden sued Schoenmann, alleging breach of contract. Schoenmann defended by invoking the statute of frauds, arguing that the contract was unenforceable because it was not in writing, as required for goods priced at $500 or more under UCC § 2–201. The trial court sided with Schoenmann, granting summary judgment, and Green Garden appealed. Key Legal Issues and Court Analysis 1. Statute of Frauds Application: o UCC § 2–201(a) requires a written agreement for sales of goods over $500 to be enforceable, unless specific exceptions apply. Since the alleged contract involved goods priced above $500 with no written agreement, the statute barred enforcement unless Green Garden could demonstrate an applicable exception. 2. Statute of Frauds Exceptions: o Green Garden argued partial performance in providing proprietary information and samples, and claimed the exclusivity agreement was inseparable from the goods sale. o The court, however, determined that the core agreement required Schoenmann to purchase goods, not just provide proprietary information, making it subject to the statute of frauds without a qualifying exception. 3. Outcome: o The court affirmed the trial court’s decision, ruling in favor of Schoenmann. The absence of a written contract and the inapplicability of statutory exceptions under § 2–201(a) rendered Green Garden’s claim unenforceable. Broader Legal Principle The case underscores that under the statute of frauds, oral agreements for goods over $500 require a written contract to be enforceable unless specific exceptions apply (such as partial delivery, admissions in court, or specially manufactured goods). Reliance on a mere oral agreement, even with partial performance in the form of information sharing, does not override the statute of frauds requirements when the essence of the agreement is a sale of goods.

Related Documents

Part 3- Contracts, Chapter 16: Writing, Doc 4

Part 3- Contracts, Chapter 16: Writing, Doc 4 - Page 1

Part 3- Contracts, Chapter 16: Writing, Doc 4 - Page 2

of 2

Recommended Documents

Part 11- Regulation of Business, Chapter 48: The Federal Trade Commission Act and Consumer Protection Laws, Note 7

Part 11- Regulation of Business, Chapter 48: The Federal Trade Commission Act and Consumer Protection Laws, Note 7

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 10- Corporations, Chapter 43: Management of Corporations, Doc 3

Part 10- Corporations, Chapter 43: Management of Corporations, Doc 3

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 4- Sales, Chapter 21: Performance of Sales Contracts, Doc 6

Part 4- Sales, Chapter 21: Performance of Sales Contracts, Doc 6

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 6- Credit, Chapter 28: Introduction to Credit and Secured Transactions, Doc 1

Part 6- Credit, Chapter 28: Introduction to Credit and Secured Transactions, Doc 1

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 9- Partnerships, Chapter 40: Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships, Doc 6

Part 9- Partnerships, Chapter 40: Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships, Doc 6

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 4- Sales, Chapter 21: Performance of Sales Contracts, Doc 1

Part 4- Sales, Chapter 21: Performance of Sales Contracts, Doc 1

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 11- Regulation of Business, Chapter 49: Antitrust The Sherman Act, Note 3

Part 11- Regulation of Business, Chapter 49: Antitrust The Sherman Act, Note 3

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 3- Contracts, Chapter 12: Consideration, Doc 1

Part 3- Contracts, Chapter 12: Consideration, Doc 1

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 2- Crimes and Torts, Chapter 6: Intentional Torts, Doc 7

Part 2- Crimes and Torts, Chapter 6: Intentional Torts, Doc 7

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 2- Crimes and Torts, Chapter 8: Intellectual Property and Unfair Competition, Doc 3

Part 2- Crimes and Torts, Chapter 8: Intellectual Property and Unfair Competition, Doc 3

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 2- Crimes and Torts, Chapter 6: Intentional Torts, Doc 2

Part 2- Crimes and Torts, Chapter 6: Intentional Torts, Doc 2

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Part 11- Appendix B: Uniform Commercial Code, Note 15

Part 11- Appendix B: Uniform Commercial Code, Note 15

Indiana University Bloomington Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

New Documents from this Course

Chapter 4: Appendix P7

Chapter 4: Appendix P7

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 21: Summary Cheat Sheet

Chapter 21: Summary Cheat Sheet

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 15: Quick Study

Chapter 15: Quick Study

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 2: Accrued Revenue

Chapter 2: Accrued Revenue

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 4: Inventory Costing Illustration

Chapter 4: Inventory Costing Illustration

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 25: Future Value of an Annuity

Chapter 25: Future Value of an Annuity

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 21: Appendix

Chapter 21: Appendix

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 24: Problem Set A

Chapter 24: Problem Set A

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 23: Decisions and Information

Chapter 23: Decisions and Information

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 17: ABC for Service Providers

Chapter 17: ABC for Service Providers

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 4: Appendix P6

Chapter 4: Appendix P6

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary

Chapter 4: Problem Set A

Chapter 4: Problem Set A

Grand Rapids Community College Financial and Managerial Accounting: Information for Decisions - John J. Wild

Summary