R6 - Sales

Question 1

What 3 conditions must be present in a merchant’s firm offer?

Answer 1

MWC
Merchant
Written/signed
Certain time (90 day max)

Question 2

T/F: Shipment of nonconforming goods is both an acceptance and a breach of contract

Answer 2

True; if the merchant ships nonconforming goods, he has accepted and also breached

Question 3

Under UCC, how long is the statute of limitations?

Answer 3

4 years

Question 4

What are the 4 exceptions for a writing for goods valued over $500?

Answer 4

SWAP
Specially manufactured goods
Written confirmation of contract (if not voided in 10 days)
Admitted in court
Performed (actually produced)

Question 5

T/F: When goods are purchased from a merchant and the goods are subsequently destroyed before delivery, the buyer is responsible for the loss

Answer 5

False; the merchant is responsible until physical transfer has occurred; non-merchant is not responsible after tender of delivery (he says you can take it)

Question 6

What are the 5 conditions for strict products liability?

Answer 6

SCUND
Seller was a dealer
Caused injury
Unreasonably dangerous
No substantial change in condition
Defective product

Question 7

T/F: In a sale or return, the buyer has title and risk of loss unless and until the goods are returned to the seller

Answer 7

True

Question 8

What is a firm offer?

Answer 8

A firm offer is an offer that must remain open despite the absence of consideration (can only be made by merchants)

Question 9

T/F: When a buyer materially breaches a contract, the seller may cancel but not seek damages

Answer 9

False; the seller may both cancel and seek damages

Question 10

T/F: Under the UCC Sales Article, the implied warranty of merchantability may be disclaimed by a seller’s oral statement that mentions merchantability

Answer 10

True