For the advanced contracts folks that are ready to jump into the UCC completely (warning: this is NOT intended for the 1L students just learning the basics of the UCC). This was the final exam we gave for our Sales Law class based on Article 2 of the UCC in Spring 2026.
For now, I will post it. Later in the week, I will post the intended outline so you can see how close you got to what we were looking for AND discuss any points where you disagree with me!
Have fun!
Sales Final Exam Fall 2025
Essay Question: Recommended time 60 minutes
On February 1, Pizza Place, located in Chicago, called Stew, a pepperoni producer located in Napersville, and ordered 100 pounds of pepperoni, at $5 per pound, for delivery to Chicago, on or before February 8.
Stew knew from previous contracts with Pizza Place that the pepperoni should be “average quality used for pizza topping.”
On February 2, Stew sent Pizza Place an email confirming the agreement and setting forth all its terms. In listing the terms, Stew added an additional term that any dispute was subject to binding arbitration.
On February 3, Pizza Place received and read the memorandum. Pizza Place was surprised by the arbitration term, which was rare in the industry. Pizza Place did not respond to the memorandum.
On February 7, Stew discovered that the market price of pepperoni had climbed to $15 a pound. Hoping to find buyers to sell the pepperoni at the higher price, Stew sent a memo stating he may not be able to deliver the pepperoni to Pizza Place at the agreed upon price.
On February 7, Stew sent Pizza Place the following e-mail: “We need a firm commitment that you will deliver the agreed upon pepperoni by 9pm PST today or we’ll buy the pepperoni elsewhere.” Instead of replying to the email, Stew immediately delivered the pepperoni to Pizza Place. Pizza Place accepted the packaged pepperoni and immediately submitted full payment.
On February 8, Pizza Place opened the packaged pepperoni for use on pizza in the retail store only to discover it was salami, a different type of meat not regularly used on pizza. This difference was not noticeable through the packaging. Pizza Place immediately sent Stew an email that they want a full refund. Stew immediately received and read the email, but instead of refunding the purchase price, he delivered 100 pounds of conforming pepperoni to Pizza Place.
Pizza Place refused to accept the February 8th delivery. Instead, Pizza Place purchased the pepperoni from another seller for $15 a pound. Stew was able to resale the 100 pounds of pepperoni to another buyer for $15 a pound.
Pizza Place sued Stew for breach of contract. Stew countersued Pizza Place.
Has Stew and/or Pizza Place breached the contract? If so, what damages might be recovered, if any, by each of them? Discuss.