Contracts3

Question 1

Under UCC, a shipment of nonconforming goods is

Answer 1

both an acceptance and a breach of contract

Question 2

If the seller reasonable notifies the buyer that nonconforming goods are shipped only as an accomodation to the buyer, the shipment is what?

Answer 2

not an acceptance. it is a counter offer

-person may accept the goods but i didnt breach any contract

Question 3

accomodation shipment rule only applys when

Answer 3

shipment is used as means for acceptance

if u promise to ship then send noncomforming shit, thats a breach- already formed contract

Question 4

auction with “reserve”

Answer 4

seller doesnt have to sell unless adequate bid is made

Question 5

auction without “reserve”

Answer 5

goods must be sold to highest bidder. can only be withfrawn if no bid is made in reasonable time

Question 6

Exceptions to statue of frauds- sale of goods over 500 has to be in writing

Answer 6

SWAP

1. specially manufactured goods
2. Merchant sends another merchant a written confirmation- binds sender, binds recipient if they do not object within 10 days
3. contracts parties have admitted in court
4. contracts that have been performed to extent performance has been accepted

Question 7

risk of loss is not determined by

Answer 7

who has title

Question 8

risk of loss: noncarrier cases

Answer 8

if seller is not a merchant, risk of loss passes to buyer upon seller’s tender of delivery. If the seller is a merchant, risk of loss only passes when the buyer gets physical possesion

Question 9

risk of loss: common carrier cases

Answer 9

whith shipment contracts

(FOB sellers place) risk of loss passes when the seller gets the goods to the carrier

with destination contracts

(FOB buyers place) risk of loss passes when the goods reach the destination and seller tenders delivery

Question 10

if goods are noncomforming, risk of loss is

Answer 10

always on the seller regardless of the shipping terms

Question 11

when can title pass

Answer 11

at the time n place parties agree, but befrore title can pass, goods must be identified

Question 12

if there is no agreement as to when title will pass

Answer 12

title passes when the seller completes her delivery requirements

Question 13

if buyer rejects the goods, whether rejection was rightful or wrongful, title….

Answer 13

revests in the seller

Question 14

what does perfect tender mean

Answer 14

the goods and delivery must conform exactly to the contract without any defects. Goods must conform al all waranties

Question 15

any implied warrant can be disclaimed if..

Answer 15

correct words are used (even by merchants)

Question 16

implied warranties arrise without

Answer 16

a writing. they are automatically implied in a sales contract

Question 17

Differences between merchantability and fitness

Answer 17

the warranty of merchantability can be made by merchants and is a warranty only that the goods will be fit for ordinary purposes. the warranty of fitness can be made bu any seller, but only if the buyer is relying on the seller to pick goods suitable for a particular purpose and is a warranty that they will be fit for that purpose