Chapter 10 & 11

Question 1

what does article 2 of the Uniform Commercial Code cover?

Answer 1

contracts for the sale of goods

Question 2

what are good covered under article 2?

Answer 2

tangible, moveable property that have a physical existence.

Services, intangible property, stocks, bonds, are NOT covered.

Question 3

what if a contract is both goods and services, then does the UCC coer?

Answer 3

a court would use the PREFOMINANT FACTOR TEST to decide. must be primarily for sale of goods not services

Question 4

what happens under the UCC if a term is left open in a contract?

Answer 4

It depends what term is open.

An offer MUST be definite enough for the parties to ascertain its essential terms.

Under UCC, many contract terms can be open.

Question 5

Price Term

Answer 5

If not specified, payment is due at the time and the place that they buyer receives the goods and court can affix a reasonable price.

Question 6

Delivery term

Answer 6

the buyer will take delivery at the seller’s place of business. The seller will deliver within a reasonable period of time.

Question 7

Quantity term

Answer 7

usually will invalidate contract unless if one of the two following types:

Question 8

Two types of quantity term

Answer 8

Requirements-I will sell you all of the chocolate that you request for the next three months

Output-I will buy all of the chocolate that you can produce the next three months