Which of the following is an exception to the Statute of Frauds for sale of goods including goods accepted by buyer, custom-made goods, or merchants' confirmatory memos?

Which of the following is an exception to the Statute of Frauds for sale of goods including goods accepted by buyer, custom-made goods, or merchants' confirmatory memos?

• A. Leases of one year or less
• B. When buyer has part performance
• C. NY includes lifetime contracts
• D. Goods accepted by buyer, custom-made goods, merchants' confirmatory memo (with no rejection within 10 days)

Answer: (D)

The concept being tested is the Statute of Frauds under the sale-of-goods regime (UCC 2-201) and its exceptions to the writing requirement. Normally a contract for the sale of goods over a certain price must be in writing, but several recognized exceptions allow enforcement without a signed writing. One exception arises when the buyer has accepted the goods; once goods are received and accepted, the contract can be enforced for the quantity accepted even if there wasn’t a writing. Another exception covers specially manufactured or custom-made goods; if the goods are made to order and not suitable for sale to others, there’s no need for a prior writing to enforce the contract. A third well-known exception involves a merchant’s confirmatory memo: when two merchants exchange written confirmations of a contract, the memo can be enforceable if the other merchant doesn’t object in writing within 10 days. So, a statement that explicitly includes goods accepted by the buyer, custom-made goods, and a merchant’s confirmatory memo (with no timely objection) captures these recognized exceptions to the writing requirement. The other options don’t align as directly with the typical exceptions for the sale of goods.

The concept being tested is the Statute of Frauds under the sale-of-goods regime (UCC 2-201) and its exceptions to the writing requirement. Normally a contract for the sale of goods over a certain price must be in writing, but several recognized exceptions allow enforcement without a signed writing.

One exception arises when the buyer has accepted the goods; once goods are received and accepted, the contract can be enforced for the quantity accepted even if there wasn’t a writing. Another exception covers specially manufactured or custom-made goods; if the goods are made to order and not suitable for sale to others, there’s no need for a prior writing to enforce the contract. A third well-known exception involves a merchant’s confirmatory memo: when two merchants exchange written confirmations of a contract, the memo can be enforceable if the other merchant doesn’t object in writing within 10 days.

So, a statement that explicitly includes goods accepted by the buyer, custom-made goods, and a merchant’s confirmatory memo (with no timely objection) captures these recognized exceptions to the writing requirement. The other options don’t align as directly with the typical exceptions for the sale of goods.