Chap 18

Question 0

What is a mixed sale?

Answer 0

A sale that involves the provision of a service and a good in the same transaction.

Question 1

What are goods?

Answer 1

Tangible things that are movable at the time of their identification to a contract.

Question 2

What is a sale?

Answer 2

The passing of title of goods from a seller to a buyer for a price.

Question 3

What is Article 2 (sales)?

Answer 3

An article of the UCC that governs sale of goods.

Question 4

What is the Uniform Commercial Code (UCC)?

Answer 4

A model act that includes comprehensive laws that cover most aspects of commercial transactions. All the states have enacted all or part of the UCC as statutes.

Question 5

What is a merchant?

Answer 5

A person who deals in the goods of the kind involved in a transaction or by his or her occupation holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Question 6

What is article 2A (leases)?

Answer 6

An article of the UCC that governs leases of goods.

Question 7

What is a lease?

Answer 7

A transfer of the right to the possession and use of named goods for a set term in return for certain consideration.

Question 8

Who is a lessor?

Answer 8

A person who transfers the right of possession and use of goods under a lease.

Question 9

What is a finance lease?

Answer 9

A three-party transaction consisting of a lessor, a lessee, and a supplier.

Question 10

What is the Revised Article 2 (Sales)?

Answer 10

A revision of UCC article 2 (sales) that includes provisions that recognize changes in the commercial environment and the importance of electronic sales contracts.

Question 11

What are the revised article 2A (Leases)?

Answer 11

A revision of UCC Article 2A (leases) that includes provisions that recognize changes in the commercial environment and the importance of electronic lease contracts.

Question 12

What is the gap-filling rule?

Answer 12

A rule that says an open term can be “read into” a contract.

Question 13

What is a firm offer rule?

Answer 13

A UCC rule that says that a merchant who makes an offer to buy, sell, or lease goods and assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time.

Question 14

What are additional terms?

Answer 14

In certain circumstances, the UCC permits an acceptance of a sales contract to contain additional terms and still to act as an acceptance rather than a counteroffer.

Question 15

What is an accommodation?

Answer 15

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled.

Question 16

What is the battle of the forms?

Answer 16

A UCC rule that states that if both parties are merchants, then additional terms contained in the acceptance become part of the sales contract unless the offer expressly limits the acceptance tot he terms of the offer, the additional terms materially alter the original contract, or the offeror notifies the offeree that he or she objects to the additional terms within a reasonable time after receiving the offeree”s modified acceptance. There is no contract if the additional terms so materially alter the terms of the original offer that the parties cannot agree on the contract.

Question 17

What is the statute of frauds?

Answer 17

A rule in the UCC that requires all contracts fro the sale of goods costing $500 or more and lease contracts involving payments of $1000 or more to be in writing.

Question 18

What is a written confirmation rule?

Answer 18

An oral agreement with a written sale within reasonable time and the other merchant does not give written notice of an objection to the contract within ten days after receiving the confirmation.

Question 19

What is parole evidence rule?

Answer 19

A rule that says that if a written contract is a complete and final statement of the parties agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.

Question 20

What is an electronic agent?

Answer 20

A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual.

Question 21

What is an electronic record?

Answer 21

A record that is created, generated, sent, communicated, received, or stored by electronic means.

Question 22

What is a letter of credit?

Answer 22

A document that is issued by a bank on behalf of a buyer who purchases goods on credit from a seller that guarantees that if the buyer does not pay for the goods, then the bank will pay the seller.

Question 23

What is Article 5 (Letters of Credit)?

Answer 23

An article of the UCC that governs letters of credit.