16-19 Sales Flashcards
Movable tangible personal property
Goods
A person who deals in goods of the kind, or otherwise by occupation is considered to have knowledge or skill peculiar to the practices or goods involved in the transaction
Merchant
All physical items except real estate
Movable personal property
Land and things permanently attached to the land
Real property
Evidences of ownership of rights or values
Intangible personal property
The transfer of title to goods from the seller to the buyer for a consideration called the price
Sale
A seller agrees to transfer title to goods to a buyer for a consideration (price), at a future time
Contract to sell
Evidence of ownership of property
Title
That consideration stipulated by contract, generally expressed in money or money’s worth
Price
Those goods which are, at the time of the contract, in existence and owned by the seller
Existing goods
- the goods specified by the buyer and seller
- goods picked to be delivered to the buyer
Identified goods
Those goods which are not in existence nor identified at the time a contract is agreed to
Future goods
- a document of conveyance which provides written evidence of one’s title to tangible personal property
- written evidence of title transfership of tangible personal property
Bill of sale
Recognized as the most important state in business law, it includes provisions which regulate certain sales of goods and negotiable instruments
Uniform Commercial Code
The contracting of services rather than goods
Service contracts
A contract which involves such personal knowledge, skills, or confidence that it can only be performed by the person with whom it is made
Personal service contract
Taking possession of goods
Receipt
Document of title issued by storage company for goods stored
Warehouse receipt
- an agreement to an offer resulting in a contract
- drawee’s signed agreement to pay draft
Acceptance
Fact acknowledged in the course of legal proceedings
Judicial admission
Specially made goods not easily resellable
Nonresellable goods
Sale of property or goods to the highest bidder, or the bidder’s agent, translated orally
Auction
Person who makes an offer at an auction
Bidder
Auction goods may not be withdrawn after bidding starts
Without reserve
Auction goods may be withdrawn after bidding starts
With reserve
Evidence of ownership of property
Title
Interest in the nonoccurrence of the risk insured against
Insurable interest
Agreement making seller liable until goods delivered to carrier
Shipment contract
Sales contract in which seller is liable until the goods are delivered to the destination
Destination contract
Designed point to which seller bears risk and expense of delivery
Free on board (FOB)
International commercial terms
Incoterms
Goods of a homogeneous nature sold by weight or measure
Fungible goods
Sale that is to completed until buyer approves goods
Sale on approval
Completed sale with the right to return goods
Sale or return
Quantity regarded as separate unit
Commercial unit
Transfer of possession of personal goods for purpose of sale
Consignment
- occurs when one party leads the second to a false conclusion that the second party relies on
- the second part would be harmed if the first party were later allowed to show the conclusion was false
Estoppel
Document that shows ownership
Documents of title
Payment that is more than twice the monthly installment payment
Balloon payment
Total dollar amount borrower paid for credit
Finance charge
Amount charge for a loan as a percentage of the loan
Annual percentage rate (APR)
- guarantees made by a seller that an article, good, or service will conform to a certain standard or will operate in a certain manner
- assurance article conforms to a standard
- statement of insured that relates to risk and appears in an insurance contract
Warranty
The actual and definite statement of a seller, either orally or in writing, at the time of the sale, guaranteeing a standard or level of performance
Express warranty
A warranty imposed by law, arising automatically because the sale has been made
Implied warranty
Warranty with unlimited duration of implied warranties, with an agreement to remedy any defects in products
Full warranty
Written warranty that is not a full warranty
Limited warranty
Information or knowledge the law assumes everyone knows
Constructive notice
Portion of a whole mass that is the subject of transaction
Sample
Replica of an article
Model
Let the buyer beware
Caveat emptor
Relationship between contracting parties
Privity of contract
Price stated per unit of measurement
Unit pricing
