R6 Sales 1 (F) Flashcards

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0
Q

Shipment of Nonconforming Goods

A

Both an acceptance and breach of contract, unless the seller reasonably notifies the buyer that the nonconforming goods are being shipped as a accommodation, in which case it would be a counteroffer

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1
Q

Merchant’s Firm Offer

A

The seller must be a merchant (regularly deals with goods in the kind sold)

The offer must be in writing and signed by the merchant

The offer must give assurances it wil be kept open for a certain time

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2
Q

Auction

A

The bid is the offer and the fall of the hammer is the acceptance

Unless otherwise stated, all auctions are “with reserve”, meaning that the seller does not have to sell unless an adequate bid is made

In an auction without reserve, the goods must be sold to the highest bidder

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3
Q

Output Contracts

A

A buyer agrees to buy the entire output of a seller’s factory for a stated period of time

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4
Q

Requirement Contract

A

A seller agrees to supply a buyer with all of her requirements for a stated period of time

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5
Q

Modification of UCC Sales Article Contract

A

A modification of a contract for the sale of goods is enforceable, even without consideration, as long as the modification is in good faith

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6
Q

Defenses to UCC Sales Article Contracts

A

Fraud - rescind and sue for money damages

Statute of limitations - 4 years Statute of Frauds

Impossibility and impracticability

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7
Q

Exceptions to UCC Sales Articles Statute of Frauds (SWAP)

A

Contracts for the sale of goods $500 or more must be evidenced by a writing signed by the party sued unless

contracts for Specialy manufactured goods
where a merchant sends another merchant Written confirmation contracts that parties have Admitted in court
contracts that have been Performed

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8
Q

Delivery and Risk of Loss of UCC Sales Article Goods

A

As a general rule, the seller’s basic duty is to hold the conforming goods for the buyer and give the buyer reasonable notice to enable the buyer to take delivery

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9
Q

Steps of Delivery and Risks of Loss

A
  1. For risk of loss to pass, goods need to be identified (marked, separated, identified as goods for a specific buyer)
  2. As parties agree - contract terms
  3. Where no specific agreement
  4. Risk in sale of approval and sale or return contracts
  5. Insurable interest when goods are identified
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10
Q

No Specific Agreement of when risk of loss passes to buyer

A

Noncarrier cases

Nonmerchant seller: Risk passes to buyer upon the seller’s tender of delivery of goods to the buyer

Merchant seller: Risk passes upon actual delivery

Carrier Cases: Shipment vs. Destination Contract

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11
Q

Shipment Contract

A

Risk of loss passes to the buyer when the goods are delivered to the carrier

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12
Q

Destination Contract

A

Risk of loss passes to the buyer when the goods reach the destination and seller tenders delivery

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13
Q

Free Along Side (FAS)

A

A price term that requires the seller to deliver the goods alongside of a specified vessel. Risk of loss passes to the buyer when the seller gets the goods alongside the vessel

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14
Q

Cost, Insurance, and Freight (CIF)

A

The cost of the contract price includes the cost of goods, insurance, and freight. Risk of loss is on buyer during shipment

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15
Q

Free on Board (FOB)

A

FOB Seller’s Place of Business: the seller must get the goods to the carrier for risk of loss to pass

FOB Buyer’s Place: the seler must get the goods to the destination and tender delivery for risk of loss to pass