Week 2 CaseStudyEx Essay

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Pages: 5

Week 2: Case Study Exercise
Read Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61 and post a draft case study to the discussion board. Identify the Facts, Issue, Holding, Reasoning and Disposition. Case study #1 will be due week 3. This exercise will help you work through the reading a case prior to receiving a grade. Use the LEXIS NEXIS database through the Webster library to access the case.

Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61
Procedural history
Rush Johnson Farms Inc., brought suit against Missouri Farmers Association Inc., (MFA) for $4,094.60 which Johnson claimed to be the balance due for soybeans sold to MFA. This case presents for the first time in Missouri the question of
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He admitted he was familiar with the operation of elevators and how they conducted business and further showed that he was capable of ascertaining the market price of beans. By trade, Johnson is a farmer and is held as a merchant according to the definition of a merchant by the Uniform Commercial Code (Miller & Boss, 2002). Because Johnson is viewed as a merchant by the court, it is obvious that the oral contract made for supplying 6000 bushels to the Missouri Farmers Association was legal. These deductions came about since Johnson had a specialized knowledge regarding beans farming and their business to the extent that he knew how to obtain the best price for his crop. Therefore, the court considered Johnson as a merchant and held that the oral contract constituted a binding contract.
The court applied the reasoning in the case of Nelson V. Union Equity Co-op. Exchange. In Nelson, the Texas Supreme Court cited several cases, which used the definition of the term merchant as provided by the Uniform Commercial Code. The Texas Supreme Court had to distinguish between the dictionary meaning of the term merchant and the provision of the Uniform Commercial Code. In the Nelson case, the court stated that according to the Uniform Commercial Code, an individual is considered a merchant if he is involved in dealing in goods of a kind (Miller & Boss,