R6 Sales 2 (F)

Question 0

Sale on Approval

Answer 0

The sale is not final until the buyer gives approval. Title and risk of loss remain with the seler until the buyer approves

Question 1

Effect of Breach on Risk of Loss

Answer 1

If the seller sends nonconforming goods, the risk of loss remains with the seller, regardless of the shipping terms, unless the buyer accepts the defective goods

Question 2

Sale or Return

Answer 2

A completed sale on delivery, but the buyer has the right to return the goods. Risk of loss passes to the buyer when the seller completes her delivery requirements. Risk remains with the buyer until the goods are completely returned

Question 3

Title Passage

Answer 3

As parties agree (but goods must be identified to the contract)

If parties do not agree, title passes upon delivery Buyer rejects goods - title revests with the seller

Question 4

Express Warranties

Answer 4

Goods will conform to the statement of fact, to the description or to the sample model

Must be part of the basis of the bargain

Can be made by any seller

Very difficult to disclaim

Question 5

Implied Warranty of Title

Answer 5

Implied in every sales contract is the warranty that the seller has good title and the right to transfer that title

May be disclaimed specificaly or by circumstance (it cannot be disclaimed by general disclaimer such as “as is” or “with al faults”)

Question 6

Implied Warranty of Merchantability

Answer 6

There is an applied warranty that the goods are fit for ordinary purposes

Made only by merchants

Disclaimed by “as is” Sale or by Stating No Merchantability

Question 7

Implied Warranty of Fitness for Particular Purpose

Answer 7

Made when seller selects goods suitable for buyer

Requires goods to be fit for specified purpose

Can be disclaimed by seling goods “as is” or “with all faults”

Question 8

Warranty Liability Under UCC Sales Article

Answer 8

Not limited to privity

Extends to those who are members of the buyer’s household, expected to use, consume, or be affected by the product

Question 9

UCC Sales Article Negligence

Answer 9

Those injured by goods can sue negligent seller if they can prove

The seller owed them a duty of care
The seller breached the duty by failing to use due care
The plaintiff suffered damages
The damages were caused by the seller’s negligence

Question 10

Strict Products Liability

Answer 10

Those injured by goods can sue in tort for strict liability by proving

The product was defective
Caused the plaintiff’s injury
Unreasonably dangerous
Seller was in the business of seling this product
The product reached the user without substantial change in condition

Question 11

Buyer Breaches

Answer 11

Seller’s right to cancel and sue for damages
Seller’s right to withhold delivery and stop goods in transit
Seller’s right to resel and sue for damages
Seller’s right to full contract price
Liquidated damages - must be reasonable (not punitive)

Question 12

Seller’s Right to Reclaim Delivered Goods for Buyer’s Insolvency

Answer 12

If an insolvent buyer has already received the goods, the seller may reclaim them within 10 days after receipt

Question 13

Seller’s Right to Full Contract Price

Answer 13

The seller can collect the full contract price and incidental damages if the goods cannot be resold for any price or if the goods are destroyed after risk of loss has passed to the buyer

Question 14

Seler Breaches

Answer 14

Buyer’s right to reject for any nonconformity
Buyer right to cancel or rescind
Buyer’s right to sue for damages
Buyer’s right to specific performance or replevin
Buyer’s right on seller’s insolvency

Question 15

Seller’s Right to Cure

Answer 15

After the buyer rejects, the seller has the right to cure the defect if there is anytime remaining under the contract for the seller’s performance