Business Law - Sale of Goods Flashcards
What comes under Common Law contract rules?
Real Estate
Services
Sale of a Business
Under Common Law Rules, acceptance must be the ____ _____ of the offer.
Mirror image.
Under UCC rules (sale of goods), does acceptance have to be the mirror image?
NO, acceptance with additional terms is OK and NOT considered a counteroffer. = VALID ACCEPTANCE
Is it easier to form a contract under Common Law or the UCC?
The UCC, because contract terms can be changed and it is still considered valid acceptance.
Do UCC rules apply to merchants and NON-merchants?
Yes, all sales of goods are under UCC rules.
What is the definition of a MERCHANT?
-Sell goods everyday
What does UCC stand for and what does it apply to?
Uniform Commercial Code
Applies to the SALE OF GOODS
What is a firm offer under the UCC rules?
Valid and does not require CONSIDERATION
Must be in writing and signed
Irrevocable for time stated.
Must be made by a merchant.
What are some OPEN TERMS allowed under the UCC rules?
-Price
What are some things NOT allowed to be left open under UCC terms?
-Quantity
Modification of terms of a contract, what is the difference between UCC and Common Law?
If a contract is for the Sale of Goods (UCC), consideration is not necessary for modification.
Is required under common law.
Custom made goods > $500 - oral contract vs. written contract to be enforceable?
Exception to Statute of Frauds. Does not need to be in writing. Enforceable.
Oral contract between merchants that is followed up by a written contract. Is this valid?
Exception to Statute of Frauds, does not need to be in writing originally
-Written confirmation of oral agreement later = valid contract
Buyer has 10 days to object.
What type of contracts does the Mailbox Rule apply?
Both Common Law and UCC allow early acceptance.
Who has the title and risk during a trial sale?
The seller retains title and risk of loss during the trial period. If not returned, title and risk of loss transfers to the buyer.
When a seller sells goods and the buyer has the right to return for 10 days, buyer is not the ultimate consumer and plans to resell. Who has title during the 10 days?
For a merchant to merchant sale, title and risk passes immediately to buyer.
Which of the following is considered a sale prior to the expiration period of the trial period?
- Sale on approval
- Sale or Return
Sale or return. Merchant to merchant.
F.O.B. destination - when is seller’s last responsibiility?
Until the goods reach their destination.
Who bears the risk of loss once goods are placed on the loading dock? Terms are F.O.B. shipping point.
Still on seller’s property. Seller bears risk.
Who bears the risk of loss once goods are placed on the truck? Terms are F.O.B. shipping point.
Once shipped, on truck, buyer bears risk.