R6-pt2Sales Law Flashcards

1
Q

What sales are covered under the Uniform Commercial Code (UCC)?

A

Only sales of goods are covered under the UCC.

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2
Q

What elements are needed for a sale covered under the Uniform Commercial Code (UCC)?

A

Offer - You offer to sell something at a price

Acceptance - the other party accepts

Consideration - Something of value has been exchanged for the goods

Note: The UCC only covers sales of goods.

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3
Q

What are the elements of a Firm Offer?

A
  • Only merchants can make firm offers
  • Must be in writing and signed
  • 3 months max
  • Assurances it will be kept open for certain amount of time
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4
Q

Under what situations are sales of goods covered by the Statute of Frauds?

A
  • If value of goods sold is > $500
  • Sales contract must be in writing
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5
Q

In Carrier Cases, when does Title and Risk of Loss transfer on a sale of goods?

A

‘Free On Board’: FOB

  • FOB shipping point: Title transfers at point of shipment (i.e. when loaded on truck)
  • FOB destination: Title and risk transfers once item is delivered
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6
Q

What is a Warranty of Title?

A

The seller has the right to sell the good and no one else can stake claim to that good

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7
Q

What is Warranty of Merchantability?

A
  • This good will do its intended purpose
  • Only made by Merchants
  • Can be disclaimed by ‘As is’ Sale or stating no Merchantability
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8
Q

What is Warranty of Fitness?

A
  • Made by Any Seller, Buyer is relying on Seller to pick goods
  • Made when Seller selects goods Suitable for Buyer
  • Can be disclaimed by ‘As is’ Sale
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9
Q

What is Strict Liability with respect to buyer protection?

A
  • Manufacturers of goods cannot disclaim that their products will be safe
  • Can be liable if negligent
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10
Q

What are Non-conforming goods with respect to buyer protection?

A
  • Buyer can reject some or all of the shipment if the seller didn’t perform as agreed and ship what was expected
  • Must give notice
  • Must give seller a chance to remedy the situation
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11
Q

What is the Statute of Limitations with respect to buyer protection?

A
  • Buyer must sue to recover damages within 4 years.
  • From the time the contract was Breached
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12
Q

Under UCC, Offers can be changed in what way & still be accepted

A
  • If its a Material Change, then its a Counteroffer
  • If Minor Changes, then a Valid Acceptance
  • Mirror Rule does Not apply
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13
Q

What are the exceptions for Sale of Goods under the Statute of Frauds? (Not have to be Written)

A
  • Specially manufactured Goods: Oral contracts binding
  • A Written Confirmation of a contract, if doesn’t object Within 10 Days
  • Admitted in Court
  • Contracts have been Performed

“SWAP”

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14
Q

Is there a Defense when there is Failure of Agreed-upon Method of Transportation?

A
  • No Defense
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15
Q

What are the Steps for Risk of Loss transfer to the Buyer?

A
  • Goods must be Identified: ‘Marked, segregated’
  • Parties Agrees: Contract Terms &
  • Non-carrier: buyer picks up.
  • Carrier: Ship goods
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16
Q

For Non-carrier Cases, When does Risk of Loss pass when its a Merchant & Non-merchant?

A
  • Merchant: Risk passes on Tender of Delivery
  • Non-merchant: Risk passes on actual Delivery
17
Q

What is an Express Warranty?

A
  • Goods will conform to the statement of Fact, to the description, or sample or model
  • Must be part of the Basis of the Bargain
  • Very Difficult to disclaim
18
Q

What is an Implied Warranty of Title?

A
  • In Every Sales contract
  • Good Title, No Understated Encumbrances & No Infringements
  • May be Disclaimed Specifically or by Circumstance
19
Q

Warranty Protection is extended to?

A
  • Anyone injured can sue
  • Breach of warranty or Tort
  • Not Limited to Privity
20
Q

To Sue Negligent Sellers, Must Prove:

A
  • Duty of care
  • Breached duty by Failing to Use Due Care
  • Damages
  • Causation
21
Q

To Sue for Tort for Strict Products Liability, must Prove:

A
  • Product was Defective
  • Caused injury
  • Unreasonable Dangerous
  • Business of selling type of product
  • Without Substantial Change in condition
  • Privity Not Req,
22
Q

What are the Seller’s Remedies when a Buyer Breaches?

A
  • Seller’s Right to Cancel & Sue for Damages
  • Seller’s Right to Withhold Delivery & Stop Goods in Transit
  • Reclaim Delivered Goods for Buyer’s Insolvency
23
Q

What are the Exceptions that allow the Transfer of Title to stolen goods?

A
  • Entrusting: Merchant sold during ordinary course of business
  • Voidable Title: Accepting a bad check
24
Q

The Fair Use Doctrine allows use of Copyrighted work Without the Owner’s Permission for the Purposes of?

A
  • Criticism & Comments
  • News Reporting
  • Teaching
25
Q

What are the Remedies for Copyrights & Patents?

A
  • Copyrights: Civil & Criminal
  • Patents: Only Civil
26
Q

What are the Limits for Liquidated Damages?

A
  • Can Collect up to a ‘Reasonable Amount’

-

27
Q

What are Liquidated Damages?

A
  • Restricts recovery to a ‘Reasonable’ amount
  • The seller may retain a deposit of up to $500 when a buyer defrauds

–Even if there is no liquated provision in the contract

28
Q

What is Anticipatory Repudiation?

A
  • Occurs when either the buyer or seller indicates in advance of performance that they will NOT Perform