This text uses a combination of problem and case method. This method gives students additional opportunities to exercise analytic thinking and to explore a rich array of practical applications of the cases. When used in conjunction with the Contracts Hornbook (Perillo, Contracts), students have the benefit of a systematic exposition of contract law to bring to bear in analyzing the cases and problems. UCC Articles 1 and 2 are included as Appendices. This new edition aims to increase accessibility and improve learning by selective reorganization, by the use of graphics to highlight basic definitions and principles, and by providing additional sample examination questions so students can gauge their mastery of the subject. New materials (cases, problems, and other readings) address important recent developments, e.g., on-line contracting and non-compete agreements.