Ch. 8: The Uniform Commercial Code Flashcards
attachment
time at which security interest become an inchoate right
battle of the forms
difference in forms used by merchants for sales agreements
CIF
cost of insurance and freight paid for my seller, even though risk of loss has passed to the buyer
COD
cost on delivery; conditional contract in which the risk of loss passes to buyer only after goods have been delivered and paid for
collateral
property pledged to secure a security interest
consignment contract
conditional contract in which risk of loss remains with seller until buyer resells the goods
cover
remedy whereby buyer can purchase goods in substitution for breached contract
express warranty
guarantee created by words or conduct of the seller
ex ship
destination contract in which risk of loss passes to buyer when goods are off-loaded from the mode of transportation
FAS
free alongside; a shipping contract in which risk of loss passes to buyer when goods are placed alongside vessel used for transportation
financing statement
document filed in government office to protect a security interest
floating lien
security interest in after-acquired property
FOB (carrier)
shipment contract in which risk of loss passes when goods are loaded onto third-party carrier
FOB (place of shipment)
free on board; shipment contract in which risk of loss passes when goods are given to third-party carrier
implied warranty
guarantee created by operation of law
mechanic’s lien
security interest given under common law to persons who repair property
merchant
person who regularly trades in goods or who holds himself out as having knowledge peculiar to a specific good
no arrival, no sale
destination contract in which risk of loss passes to buyer when goods are tendered to the buyer
perfect tender
buyer’s right to complete performance
perfection
method of creating and protecting a security interest under Article IX of the UCC
purchase money security interest
security interest created in the creditor whose money is used to buy the collateral
replevin
equitable remedy in which buyer reclaims property previously rejected
revocation
to recall an offer
sale on approval
conditional contract in which risk of loss passes to buyer when buyer receives and approves goods
sale or return
conditional contract in which risk of loss passes when buyer receives goods; buyer bears the cost of returning goods of which he does not approve
secured transaction
any transaction regardless of form, that creates a security interest in personal property or fixtures
security agreement
document signed by debtor and creditor that names the collateral and creates a security interest in said collateral
security interest
right acquired by a creditor to attach collateral in case of default by the debtor
shipment contract
agreement whereby risk passes from seller to buyer when goods are transported by a third person
strict liability
no standard of care; automatic liability if properly used goods do not meet the warranty
warranty
guarantee made by manufacturer or seller with respect to quality, quantity, and type of good being sold
warranty of fitness for a particular use
guarantee that goods can be used for a specified purpose
warranty of merchantability
guarantee that goods can be used in their current condition
warranty of title
guarantee that seller has a title sufficient to transfer goods to buyer
