Mod 23-27 Quiz Flashcards
Under Novation, the new party…
Assumes all responsibilities of original party
Substituted contract involves…
The original parties to an agreement whereby all parties agree to substitute the terms and conditions of new and amended contract
Under a substituted contract, parties are…2
1 released from their duties of original contract
2 continue contractual relationship
During the investigative process of any license discrepancies, state boards initially work to ensure that a…
Full investigation is performed to determine if the matter should
Be pursued
Full investigation by state boards include…2
1 subpoenaing witnesses and
2 collecting documents
When does risk of loss pass when a nonmerchant sells an item to buyer?
Risk of loss passes to buyer upon tender delivery to buyer
The law considers a nonmerchant seller one who would not necessarily have…2
1 insurance or
2 safe storage for goods
In order for a contract to be enforceable consideration must…
Be mutual
Paying money is the…
2) performing a service is…
Consideration from the buyer
2) the consideration from the service provider
There can be no contract without…
Acceptance
Open acceptance would…
Not result in a sales contract
Open quantity, under UCC sales article can…
Result in a contract
Registration under the ‘33 Act requires…
Full disclosure of financial information
One of the essential elements of a contract is…
Legal capacity
Minors are considered to have…
2) as a result, the general treatment of minors by the law is…
Compromised contractual capacity
2) favorable
A minor may disaffirm (get out of) a contract for…2
1 Nonnecessities (ex. Computer)
2 whether executed or partly executed
The minor is to return the goods, if able, after disaffirmance. If a minor is unable to return goods or the goods are damaged, the…
Adult party generally bears the loss
When the seller is a merchant, the risk of loss passes from the merchant seller to the buyer upon…
The buyer’s actual receipt of goods
Risk of loss does not pass to buyer when seller…
Delivers goods in his own truck
In a noncarrier case, risk of losses passes from merchant seller on…
Actual delivery of goods into buyer’s possession
Mere tender at the seller’s place of business does…
Not pass risk of loss to buyer
Since the seller is a merchant, risk of loss passes when…
Buyer takes actual physical possession of goods
Neither the tender of the goods at the seller’s place of business nor use of the seller’s truck to deliver the goods is an event that transfers risk of loss to the buyer as the merchant seller…
Merchant seller still retains possession of the goods
Novation requires…
At least one part of original contract to be substituted for new party
