Chapter Thirteen - Working with Contracts

Question 1

UCC Search

Answer 1

Activity conducted to find security interests in personal property that have been recorded under UCC Article 9

Question 2

Escrow

Answer 2

Account held for the benefit of others, into which parties typically deposit documents, instructions, and fund for a transfer of property

Question 3

Assignment

Answer 3

Transfer of interest in property or some right (contractual settlement) to another

Question 4

UCC Financing Statement

Answer 4

Evidence that property is security for debt, typically filed with the secretary of state

Question 5

Express Warranties

Answer 5

Warranties created by the written or spoken word, demonstration, or depiction of a product

Question 6

Implied Warranty of Merchantability

Answer 6

An implied warranty, given by a merchant seller, that goods are fit for usual purpose

Question 7

Warranty of Fitness for a Particular Purpose

Answer 7

Implied warranty that arises when seller makes a recommendation

Question 8

Redline

Answer 8

Feature in word processing software that enables changes in a docment to be tracked

Question 9

Boilerplate

Answer 9

Standard terms included in most contracts

Question 10

Severability Clause

Answer 10

Contract provisions that in the event that one part of the contract is found to be invalid, the rest of the contract shall remain in effect

Question 11

Delegation

Answer 11

Pass contractual obligations to another

Question 12

Legelese

Answer 12

Overly formal, often archaic language sometimes used in legal documents

Question 13

Active Voice

Answer 13

The subject of the sentence acts

Question 14

Passive Voice

Answer 14

Subject to acted upon

Question 15

Consignment

Answer 15

An arrangement under which goods are placed for sale, but title does not transfer to the seller

Question 16

Independent Contractor

Answer 16

One hired to undertake a specific project using his own methods (not an employee)