Business Law

Question 0

What are the four parts to make a valid contract?

Answer 0

offer and acceptance,
consideration (computer for $400),
nothing to indicate either party lacks legal capacity,
legal purpose (selling & buying of a computer.

Question 1

When do you use ucc vs common law?

Answer 1

Ucc= when dealing with goods

Common law for dealing with realty or services

Question 2

Whats a bilateral contract?

Answer 2

A promise for a promise.

Ex. a promise to sell something for a promise to buy that thing

Question 3

What does executory and executed mean?

Answer 3

Executory = the contract isn't completed yet - the exchange of cash for a computer hasn't taken place yet.
Executed = the contract has been completed - the exchange of cash for the computer has taken place.

Question 4

In determining whether the consideration requirement to form a contract has been satisfied, the consideration exchanged by the parties to the contract must be

Answer 4

Legally sufficient.

Question 5

When does the first promise serve as valid consideration for the second promise?

Answer 5

To give consideration, a person must promise to do something new or something not already obligated to do.

Question 6

Do physical threats do render a contract void?

Answer 6

Yes

Question 7

Under the parol evidence rule, oral evidence will be excluded if it relates to…

Answer 7

A contemporaneous oral agreement relating to a term in the contract.

Question 8

Before any interest in goods (title or risk of loss) can pass from a seller to a buyer, the goods must be in ____ and ____ to the contract—UCC 2-105(2).

Answer 8

existence and identified

Question 9

T or F: For goods in existence at the time the contract is entered into, identification occurs at the time the parties enter into the contract.

Answer 9

True

Question 10

How are goods identified for Fungible Goods?

Answer 10

Identification occurs when the goods are shipped, marked, or otherwise designated for the buyer, i.e., set aside in the warehouse

Question 11

How are goods identified for Future Goods?

Answer 11

identification occurs when those rocking chairs are shipped, marked, or otherwise designated for the buyer

Question 12

Place of shipment (seller’s city, business, or warehouse, or “shippoint.”). Title and risk of loss pass upon delivery (possession) of conforming goods to the carrier

Answer 12

F.O.B. Shipping Point

Question 13

Place of shipment. Title and risk of loss pass upon seller’s delivery of conforming goods alongside the vessel in the manner usual in that port, or on a dock designated and provided by the buyer

Answer 13

F.A.S

Question 14

Title and risk of loss pass from seller to buyer when the seller delivers (possession) identified conforming goods to the carrier, obtains a negotiable bill(s) of lading covering transportation to a named destination, procures an insurance policy, and forwards to buyer all document

Answer 14

C.I.F.

Question 15

This follows the same rule as in C.I.F., except procurement of an insurance policy is not required on seller’s part.

Answer 15

C&F

Question 16

This term requires the buyer to pay cash upon tender of the goods. If goods are shipped COD, then the timing of the buyer’s right to inspection is affected

Answer 16

C.O.D.

Question 17

Title and risk of loss pass from seller to buyer once goods arrive at the final destination.

Answer 17

F.O.B. Destination

Question 18

In UCC Article 2, when there is absence of a place of delivery where does delivery occur?

Answer 18

At the seller’s place of business or residence if no place of business exists.

Question 19

1. determine if there is a title document
2. If not, title passes at the moment the contract is made. Note that in nonshipment contracts for goods, identification and passage of title occur at the same time.
3. If there is a document , and the document is negotiable or nonnegotiable, then title passes to buyer upon buyer’s receipt of the document
   This describes title passage for delivery or non-delivery?

Answer 19

Title passage for non-delivery

Question 20

1. If FOB shipping point - title passes to buyer when carrier picks up goods
2. If FOB destination - title passes to buyer when goods arrive at final destination.
   This describes title passage for delivery or non-delivery?

Answer 20

Title passage for delivery contracts

Question 21

1. determine whether contract is delivery or non-delivery
2. determine whether seller is merchant or non-merchant
3. If seller is merchant risk of loss passes when buyer has possession
4. If seller is non-merchant, risk if loss passes when seller tender’s goods to buyer.
   This describes risk of loss passage for delivery or non-delivery?

Answer 21

Risk of loss passage for non-delivery

Question 22

1. FOB shipping point - risk of loss passes when carrier is in possession of goods
2. FOB destination - risk of loss passes when goods arrive at buyer’s warehouse

Answer 22

Risk of loss passage for Delivery

Question 23

If seller breach occurs, when does title and risk of loss pass?

Answer 23

When buyer accepts incorrect goods or when buyer receives correct goods

Question 24

What are the three requirements for a security interest to attach?

Answer 24

1. it has to be written and describe the collateral
2. The secured party must give something of value
3. The debtor must have rights in the collateral

Question 25

Define security agreement

Answer 25

Agreement which creates security interest

Question 26

Define Security Interest

Answer 26

interest in the collateral which secures payment of an obligation

Question 27

Describe when a creditor can have a valid oral security agreement.

Answer 27

When the creditor is in possession of the collateral

Question 28

Define Chattel Paper

Answer 28

Writing(s) which evidence both a security interest in good(or software) and a monetary obligation to pay - example of a security agreement.

Question 29

Define attachment

Answer 29

Time when security interest becomes valid: requires security agreement and debtor with interest in the property and creditor gives value.

Question 30

Define Perfection

Answer 30

A means by which a secured party gains priority to a debtor’s collateral over other third parties who also claim to have an interest in the same collateral.

Question 31

What are the methods of perfection?

Answer 31

1. Attachment (automatic upon creation of security interest);
2. Possession - Control;
3. Filing;
4. Automatic;
5. Temporary.

Question 32

Is equipment covered by the automatic perfection rule?

Answer 32

No

Question 33

Does inventory require a filing for perfection?

Answer 33

Yes

Question 34

A manufacturer can perfect without filing when there is a purchase money security interest in goods purchased by whom?

Answer 34

consumers

Question 35

What is the general rule of priority between two perfected security interests

Answer 35

First in time of perfection is first in rights

Question 36

What is this: If the debtor is able to pay, the surety may require the debtor to pay before the surety pays.

Answer 36

Exoneration

Question 37

A contract involving two parties in which the first party agrees to indemnify and reimburse the second party for covered debts or losses should they take place. Is this an indemnity contract or surety contract?

Answer 37

Indemnity

Question 38

_____ is the highest form of land ownership. It means the owner has the right to sell, mortgage, will, and lien the property.

Answer 38

Fee Simple

Question 39

A lease agreement must include what?

Answer 39

A description of the leased premises

Question 40

A joint tenancy requires that all tenants acquire their interests at the same time. If someone acquired his interest after the fact, they would be a _______, not a joint tenant.

Answer 40

tenant in common.

Question 41

Must a purchase price and description of the land be included in a deed?

Answer 41

No, just description of the land

Question 42

Which type of deed will give a real property purchaser the greatest protection?

Answer 42

General Warranty

Question 43

What is a defect in marketable title to real property?

Answer 43

Unrecorded easements

Question 44

A purchaser who obtains real estate title insurance will be covered how?

Answer 44

Be insured against all defects of record other than those excepted in the policy.

Question 45

By recording the mortgage, a bank protects its rights against what?

Answer 45

the claims of subsequent bona fide purchasers for value. The purpose of recording is to keep the rights of the original parties intact and protect against future transfers or recorded rights.

Question 46

a statutorily filed lien by a creditor when he or she has rendered services, labor, or material to repair or improve real estate but the purchaser has not paid him or her is known as what?

Answer 46

A mechanics lien

Question 47

What are the 3 requirements for a valid deed?

Answer 47

1. must be in writing;
2. must be signed by the grantor;
3. must include a description of the land.

Question 48

What are the 5 types of Bankruptcy?

Answer 48

Chapter, 7, 9, 11, 12, & 13