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Yaeger REG > Mod 27 Sales > Flashcards

Mod 27 Sales Flashcards

1
Q

UCC Sales does not involve…3

A

1 personal services

2 real estate or

3 intangible personal property

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2
Q

UCC sales may include…

A

Growing crops

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3
Q

Whether UCC Sales is involved does not depend on…

A

Price of the goods

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4
Q

Firm offers in sale of goods are…

A

Irrevocable without consideration

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5
Q

3 elements of firm offers

A

1 must be a merchant

2 must be in writing and

3 guarantee it will be held open

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6
Q

Firm offers are irrevocable for the time stated, but maximum period is…

A

3 months

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7
Q

Firm offer:

If no time is stated, it is irrevocable for…

A

A reasonable time

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8
Q

In sales you can make minor…

A

Minor changes between merchants and still have acceptance

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9
Q

In sales you can make minor changes between merchants and still have a valid acceptance. What is the exception?

A

If one party says “no changes” then no changes are allowed

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10
Q

Mailbox rule

A

Acceptance is valid when sent with any reasonable means of communication

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11
Q

Seller may accept ordered goods by…

A

Prompt shipment

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12
Q

Seller may accept ordered goods by prompt shipment. This is true even if…

A

Goods are non-conforming

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13
Q

Goods are non-conforming

A

Seller has both accepted and breached

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14
Q

In UCC Sales you may modify a contract without…

A

Without added consideration

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15
Q

In UCC Sales you may modify a contract without added consideration. A writing will be required if…

A

The modification is for $500 or more

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16
Q

In UCC Sales, modification must…

A

Be made in goods faith

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17
Q

Duties of seller: unless otherwise agreed, the basic obligations of. Seller are to…2

A

1 hold conforming goods for buyer and

2 give reasonable notification

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18
Q

Duties of seller:

Seller must make…

A

Perfect tender (no defects allowed)

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19
Q

Duties of seller:

If no place of delivery is stated, the place is…

A

The seller’s place of business

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20
Q

Duties of seller:

If specified delivery means is impractical, seller may…

A

Seller may substitute a different means

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21
Q

Duties of buyer: unless otherwise agreed, the basic duties of a buyer are to…2

A

1 accept conforming goods and

2 pay for them at time of delivery

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22
Q

Duties of buyer:

Buyer can pay by…

A

Any reasonable means to include check

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23
Q

Duties of buyer:

Buyer has right to…

A

Inspect prior to payment

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24
Q

Duties of buyer:

Buyer has right to inspect prior to payment, except in…

A

A C.O.D. sale

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25
Q

Duties of buyer:

Buyer may revoke…

A

An acceptance for substantial defects

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26
Q

Buyer may reject…

A

Nonconforming goods for any nonconformity

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27
Q

Buyer may reject Nonconforming goods for any nonconformity 4

A

1 buyer may reject all, some or none of the goods
2 rejection returns title to seller
3 buyer must notify seller within reasonable time and follow
reasonable instructions
4 seller has right to cure by notifying buyer problem will be corrected
On time

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28
Q

All parties are required to act in…

A

Good faith

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29
Q

Anticipatory breach

A

Party states they won’t perform prior to time of performance

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30
Q

When anticipatory breach occurs, the injured party may…2

A

1 sue immediately or

2 wait until time of performance and then sue

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31
Q

Adequate assurance of performance

A

A demand for written assurance of performance

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32
Q

Adequate assurance of performance:

Either buyer or seller may demand…

A

Written assurance when reasonable grounds exist

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33
Q

Adequate assurance of performance:

If it is not received in a reasonable time…

A

Other Party is released from contract

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34
Q

Sale of goods over $500 or more requires writing which must include…

A

A quantity

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35
Q

Statute of Frauds exceptions

A

No writing required, even if $500 or more

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36
Q

UCC Sales must involve…

A

Goods (movable personal property)

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37
Q

Statute of frauds exceptions, 4

A

1 specially manufactured goods
2 payment of goods or receipt of goods
3 admissions in court
4 merchants confirming letter

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38
Q

Statute of Frauds exceptions:

Specially manufactured goods…

A

For the buyer

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39
Q

Statute of Frauds exceptions:

Payment of goods or receipt of foods. With a part payment or part receipt, the contract is…

A

Contract only enforced for part paid or part received

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40
Q

Statute of Frauds exceptions:

Merchants confirming letter

A

If no objection in 10 days, both merchants are bound

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41
Q

To determine when title and risk of loss pass…2

A

1 goods must first be identified

2 once identified, the most important factor is agreement between
The parties

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42
Q

Transportation by common carrier is either…2

A

1 a shipment or

2 a destination contract

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43
Q

Shipment contract

A

Risk of loss and title pass when seller delivers goods to carrier

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44
Q

Destination contracts

A

Risk of loss and title pass when seller gets goods to destination
And tenders delivery

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45
Q

Tenders delivery

A

Seller notifies buyer goods have arrived

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46
Q

If it is unclear whether shipment contract or destination contract is present, the UCC says…

A

UCC says it’s a shipment contract

47
Q

If there is no common carrier, either…2

A

1 no transportation or

2 seller uses his truck

48
Q

If there is no common carrier, title passes as soon as…

A

Contract is made with identified goods

49
Q

If there is no common carrier, risk of loss with merchant sellers only passes when…

A

Buyer takes possession

50
Q

If there is no common carrier, risk of loss with non-merchants passes on…

A

Tender delivery

51
Q

With non conforming goods risk of loss is…

A

Always on seller

52
Q

With Nonconforming goods title passes when…

A

The seller completes delivery requirements

53
Q

Insurable interest:

Buyer gets insurable interest when…

A

Goods are identified

54
Q

Insurable interest:

Seller has an insurable interest if…

A

The seller has any risk of economic loss or title

55
Q

FOB means 2

A

1 free on board and

2 fixes the place where risk of loss and title pass

56
Q

FOB seller’s loading dock is…

A

A shipment contract

57
Q

FOB buyer’s loading dock is…

A

A destination contract

58
Q

CIF means the price includes…3

A

1 cost of goods

2 insurance and

3 freight (a shipment contract)

59
Q

Sale on approval

A

Neither risk of loss nor title pass until buyer approves

60
Q

Sale or return 2

A

1 Buyer gets risk of loss and title on delivery

2 but may return the goods

61
Q

Implied warranties require…

A

No oral or written words

62
Q

Any implied warranty can be…

A

Disclaimed

63
Q

Any implied warranty can be disclaimed, but the disclaimer must…

A

Be conspicuous

64
Q

Implied warranty:

A seller cannot…

A

Cannot disclaim liability for personal injury

65
Q

Merchantability

A

Merchant’s promise goods are fit and safe for normal uses

66
Q

Merchantability can be…2

A

1 Disclaimed in a sale or

2 by telling buyer no warranty of merchantability

67
Q

3 Warranties of Title

A

1 title

2 encumbrances

3 infringements

68
Q

All sellers impliedly promise…

A

Good title

69
Q

Encumbrances

A

All sellers promise no unstated liens or attachments

70
Q

Infringements

A

Merchant sellers promise no patent or trademark violations

71
Q

Disclaiming title requires…

A

Very specific language

72
Q

Disclaiming title requires very specific language, seller must specifically tell buyer that he…

2) what is ineffective?

A

Doesn’t guarantee title

2) general language is ineffective

73
Q

Fitness for a particular purpose:

Buyer must rely on seller to…

A

Select suitable goods (seller must know of reliance)

74
Q

Fitness for a particular purpose:

If buyer does rely…

A

Goods must fit for buyer’s specific purpose

75
Q

Fitness for a particular purpose:

How can fitness for a particular purpose be disclaimed?

A

Writing is required

76
Q

Express warranties:

A buyer may sue the seller for…

A

Any material misrepresentation of fact

77
Q

A buyer may sue the seller for any misrepresentations of fact 2

A

1 opinions and statements of value don’t count unless they are
made by experts

2 conformity to description, sample or model is an express warranty

78
Q

Express warranties:

The words must have been…

A

Part of the basis of the bargain

79
Q

Power to transfer title:

Usually buyer gets…

A

Gets no better title than seller has to give

80
Q

Power to transfer title:

2 exceptions when buyer gets better title than the seller has to give 2

A

1 entrusting

2 voidable title

81
Q

Entrusting 2

A

1 A rightful owner leaves goods with a merchant who sells them by
Error

2 an innocent buyer gets good title

82
Q

Example of a voidable title

A

Fraud

83
Q

Power to transfer title:

One with voidable title (fraud) can…

A

Pass good title to an innocent purchaser

84
Q

Remedies of buyer:

In sales a buyer can…2

A

1 rescind (cancel) and

2 sue for money damages

85
Q

Remedies of buyer:

In sales a buyer can rescind (cancel) and sue for money damages. 2

A

1 buyer may recover for any loss, but can’t collect punitive damages

2 buyer must give reasonable notice of cancellation

86
Q

Remedies of buyer:

Buyer may cover

A

Purchase suitable goods elsewhere and charge seller for any loss

87
Q

With rapidly rising prices, buyer’s failure to cover may…

A

Reduce his damages

88
Q

Remedies of buyer:

Buyer may recover goods from seller if…2

A

1 buyer has prepaid and

2 goods are identified

89
Q

Remedies of buyer:

Specific performance may be used if…2

A

1 Goods are unique or

2 if buyer cannot cover

90
Q

Remedies of seller:

If buyer breaches seller may…

A

Resell and sue for damages

91
Q

Remedies of seller:

If buyer breaches seller may resell and sue for damages 2

A

1 seller may charge buyer for any loss to include expenses, lost
Profits and storage fees

2 seller may not collect punitive damages

92
Q

Remedies of seller:

Seller may rescind (cancel) and…

A

Sue for money damages

93
Q

Remedies of seller:

It in a credit sale buyer becomes insolvent, seller may…

A

Stop delivery and demand cash

94
Q

Remedies of seller:

If in a credit sale buyer becomes insolvent, seller may stop delivery and demand cash. 2

A

1 if goods were already delivered, the seller may reclaim them within
Ten days

2 there is no 10 day limit if buyer misrepresented solvency

95
Q

Statute of limitations in sales states…

A

Suit must be brought within 4 years of breach

96
Q

Statute of limitations in sales:

By agreement 2

A

1 By agreement can be limited to minimum of 1 year

2 can’t be extended beyond 4 years

97
Q

Privity determines…

A

Who can sue whom

98
Q

Strict privity 2

A

1 Only original buyer could sue and

2 could only sue original seller

99
Q

Privity:

UCC rule

A

1 Users and those reasonably affected by product may sue

2 can’t be excluded

100
Q

Privity:

Negligence 2

A

1 those injured may sue negligent sellers

2 must show 4 elements

101
Q

4 elements of negligence

A

1 duty of care
2 breach
3 damages
4 causality

102
Q

Duty of care

A

Seller owed buyer duty of due care

103
Q

Breach

A

Seller failed to use reasonable care

104
Q

Damages

A

Buyer suffered damages

105
Q

Causality

A

Buyer’s damages were caused by seller’s breach

106
Q

Strict liability in tort 2

A

1 Liability without fault by sellers of defective products

2 must show 5 elements

107
Q

Privity and negligence are…

A

Irrelevant as defenses for strict liability tort

108
Q

5 elements of strict liability tort

A 
1 defective products
2 cause
3 unreasonably dangerous
4 business
5 changes
109
Q

Defective products cause unreasonably dangerous business changes:

Defective products

A

Must show a defective product

110
Q

Defective products cause unreasonably dangerous business changes:

Cause

A

Must show the defect caused injury

111
Q

Defective products cause unreasonably dangerous business changes:

Unreasonably dangerous

A

Must show defect was unreasonably dangerous to users and consumers

112
Q

Defective products cause unreasonably dangerous business changes:

Business

A

Must show seller was engaged in that business

113
Q

Defective products cause unreasonably dangerous business changes:

Changes

A

Must show it reached user without substantial changes

Yaeger REG (77 decks)

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