Ch. 19: Introduction to Sales and Leases

Question 1

Goods

Answer 1

Movable personal property

Question 2

Sale

Answer 2

Transfer of title to goods from seller to buyer for a price

Question 3

Lease

Answer 3

A transfer of right to possession and do use of goods in return for consideration.

Question 4

Consumer leases

Answer 4

Leases by a merchant to an individual who leases for personal, family, or household purposes for no more than $25,000.

Question 5

Finance lease

Answer 5

Special type of lease transaction generally involving three parties: the lessor, the supplier, and the lessee.

Question 6

Sales transactions

Answer 6

Governed by Article 2 of the Code, except when general contract law has not been specifically modified by the code, general contract law continues to apply.

Question 7

Transactions outside of the Code

Answer 7

Include employment contracts, service contracts, insurance contracts, contracts involving real property, and contracts for the sale of tangibles.

Question 8

Least transactions

Answer 8

Governed by Article 2A of the Code, but when general contract law has not been specifically modified by the Code, general contract law continues to apply.

Question 9

Fundamental principles of Article 2 and Article 2A

Answer 9

To modernize, clarify, simplify, and make uniform the law of sales

Question 10

Good faith

Answer 10

Honesty in fact and observance of reasonable commercial standards of Fair dealing.

Question 11

Unconscionability

Answer 11

A court may refuse to enforce an unconscionable contract or any part of a contract found to be unconscionable

Question 12

Procedural unconscionability

Answer 12

Unreasonable bargaining process

Question 13

Substantive unconscionability

Answer 13

Grossly unfair contractual terms

Question 14

Course of dealing

Answer 14

Sequence of previous conduct between parties establishing a basis for interpreting their agreement

Question 15

Usage of trade

Answer 15

Practice her method of dealing regularly observed and followed in a place, vocation, or trade

Question 16

Merchant

Answer 16

Dealer in goods or person who by his occupation holds himself out as having knowledge or skill peculiar to the goods

Question 17

Freedom of contract

Answer 17

Most provisions of the Code may be buried by agreement

Question 18

Validation and preservation of sales contract

Answer 18

The Code reduces formal requisite‘s to the bare minimum and attempts to preserve agreement whenever the parties manifest an intention to enter into a contract

Question 19

Definiteness of an offer

Answer 19

The Code provides that a contract does not fail for an definiteness even though one or more terms may have been omitted; the Code provide standard by which missing essential terms may be supplied.

Question 20

Option

Answer 20

Contract to hold open an offer

Question 21

Firm offer

Answer 21

Signed writing by Merchant to hold open an offer for the sale or purchase of goods or the lease of goods

Question 22

Variant acceptances

Answer 22

The inclusion of different or additional terms in an acceptance is addressed by focusing on the intent of the parties.

Question 23

Manner of acceptance

Answer 23

And acceptance can be made in any reasonable manner and is affective upon dispatch

Question 24

Auction

Answer 24

Auction sales are generally with reserve, permitting the auctioneer to withdraw the goods at anytime prior to sale.

Question 25

Contractual modifications

Answer 25

The Code provides that a contract for the sale or lease of goods maybe modified without you consideration if the modification is made in good faith.

Question 26

Statute of frauds

Answer 26

Sale of goods costing $500 or more (or the lease of goods for $1000 or more) must be evidenced by a signed writing to be enforceable.

Question 27

Written compliance

Answer 27

The Code requires some writing or writings sufficient to indicate that a contract has been made between the parties, signed by the party against tune enforcement is sought or buy her authorized agent or broker, and including a term specifying the quantity of goods.

Question 28

Parol evidence

Answer 28

Contractual terms that are set forth in a writing intended by the parties as a final expression of their agreement may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement, but such terms may be explained or supplemented by course of dealing comma usage of trade, or so performance, or consistent additional evidence.