Whether a Farmer Is a Merchant Within the Meaning and Intent of Section 2.201(b) and Is Thereby Barred from Asserting a Statute of Frauds Defense Is a Question of Fact

Carroll Nelson allegedly agreed orally to deliver to Union Equity Co-operative Exchange 5,000 bushels of wheat @ $3.56 per bushel. Thereafter, Union Equity sent Nelson a written confirmation of that alleged oral contract. Nelson, however, refused to deliver the wheat as required in the written confirmation. Union Equity, therefore, brought a contract action against Nelson seeking damage relief. The district court, sitting without a jury, rendered judgment in favor of Union Equity and against Nelson, holding that Union Equity's written confirmation complied with section 2.201(b) of the Texas Business & Commerce Code and that Nelson was a merchant. On appeal, the court of civil appeals affirmed, holding that Nelson was barred from asserting a Statute of Frauds defense because the requirements of section 2.201(b) had been satisfied. The Supreme Court of Texas granted the application for a writ of error in order to consider the question of whether Nelson was a merchant when he entered into the oral contract with Union Equity. The Supreme Court answered that question in the affirmative and affirmed the trial court's finding.