This examination is open book in that students are allowed to have with them for use during the exam a Copy of the Uniform Commercial Code together with any interlineations inserted therein by the student. A senior partner in the fr m in which you are an associate has been asked by a Client for advice on the following proposed business venture.
Client is in the business of assembling aluminum storm windows.
The employee unions in his plants are causing all sorts of problems. The proposal is that Client would purchase all the raw material needed for the windows and ship them out for assembly at various plants throughout New England, which plants would be owned entirely by the unions. Once the assembly had been completed, the finished windows would then be shipped directly to Client's customers in New England. This plan would have the effect of making the unions entrepreneurs and allow the workers to share in profits while having some of the risk of production problems. Unions are concerned about payment since the plan contemplates shipment of the finished product to Client's customers and payment to be made when Client is paid by its customers and that will be only when the finished product is sold by the customers.