10. In a suit by the manufacturer against the retailer, which of the following will be the probable decision?

B is correct. Under the Uniform Commercial Code's (UCC) Statute of Frauds, a contract for the sale of goods for $500 or more is not enforceable unless there is a writing sufficient to indicate that a contract has been made, which is signed by the party against whom enforcement is sought. The writing need not contain all of the terms of the contract, but it is only enforceable to the extent of the quantity term stated in the writing. The contract between the manufacturer and the retailer for the 500 towels falls within the UCC Statute of Frauds because it is for over $500. However, when dealing with two merchants, there is something called the Confirmatory Memo Rule. In contracts between merchants, if one party, within a reasonable time after an oral understanding has been reached, sends a written confirmation to the other party that binds the sender, it will satisfy the Statute of Frauds requirements against the recipient as well, if the recipient knew of the memo's contents and failed to object to the memo's contents in writing within 10 days of when the confirmatory memo was received. The retailer received the written confirmation and was thus bound by the confirmatory memo for the 500 towels.

A is incorrect. The contract is only enforceable to the extent of the quantity term stated in the confirmation.

C is incorrect. The writing only needs to be signed by one party when dealing with merchants.

D is incorrect. The UCC Statute of Frauds does not require that the price term be stated in the writing.