Green Garden Case

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Green Garden Case

Issue

The issue before the court of law is a claim of fraud by Green Garden Packaging against Schoenmann Produce Company. In the claim, the defendant is accused of breaching a contract on confidentiality that was reached with the plaintiff. The defendant used the trade secrets that were disclosed by the plaintiff to further business interests that did not involve the defendant. The plaintiff who is a former supplier to the defendant feels aggrieved because the plaintiff has used the secrets provided to source for alternative suppliers to a venture that could not have been granted without his or her help.

Rule

Rule § 2-201 applies to the rule because it enforces the sale of goods contracts that are equal to or greater than $500. The law states that a contract of sale of goods for a price that is 500 dollars or more should only be enforceable by writing. However, there are exceptions to the rule. The first exception is that the goods need to be manufactured specifically for the buyer to enforce. Secondly, is when then defendant admits that the verbal contract was entered in a court of law. Thirdly, is when payment has been received for goods and services rendered to fulfill the contract.

Analysis

The court examined the facts of the case and rightly so determined that the rule § 2-201 is the applicable law in the case. It was also determined that no fact in the case fulfilled any of the three requirements for an exception. Therefore, the law was to be applied as it is.

Conclusion

The ruling was for the plaintiff Schoemann Produce Company mainly because of the verbal contract entered between the two parties. The plaintiff denied existence any contract between them and the defendant failed to prove that it indeed existed.