Intro Flashcards
What is a merchants firm offer?
A merchant’s firm offer is irrevocable for up to three months if it is in writing, signed, and includes words of firmness.
What is the effect of nonconforming good shipped in response to an offer?
Shipment of nonconforming goods is both acceptance and breach unless the seller seasonably notifies the buyer that the shipment is an accommodation.
What is the Statute of Frauds requirement for sales of goods under UCC Article 2?
Contracts for the sale of goods $500 or more must be in writing, signed by the party to be charged, and include a quantity term.
When does risk of loss pass in non-carrier contracts?
Risk of loss passes to the buyer upon tender of delivery if the seller is not a merchant; for merchants, it passes when the buyer takes physical possession.
What is the Perfect Tender Rule?
The seller must deliver goods that conform exactly to the contract terms, and any deviation allows the buyer to reject, accept, or accept in part.
How does Article 2 handle auction sales?
A sale is complete at the fall of the hammer. In reserve auctions, goods may be withdrawn before the hammer falls; in no-reserve auctions, goods cannot be withdrawn once bidding begins.
What is the effect of a merchant’s confirmatory memo?
A merchant is bound by a confirmatory memo unless they object within 10 days of receipt.
When does Article 2 govern sales of goods associated with real property?
Article 2 governs sales of structures, minerals, or fixtures if severance is by the seller, and sales of growing crops or timber regardless of who severs them.
