REG 4 - R6 Sales, Copyrights & Patents, R7 Commercial Paper

Question 1

Warranty of Title

Answer 1

1. Guarantee from the seller that the goods are delivered free from all liens of which the buyer lacked knowledge when the contract was made.
2. Can be disclaimed by specific language or circumstance
3. Automatically arises in any sale of goods
4. Doesn’t have to be a merchant
5. Doesn’t have to be in writing

Question 2

Action for Strict Product Liability

Answer 2

1. Must be sold in a defective condition
2. Seller was in business of selling goods
3. Defect caused plaintiff’s injury
4. The product was expected to and did reach the consumer without substantial change

Question 3

Risk of Loss under UCC is determined by

Answer 3

Shipping terms

Question 4

F.O.B. Place of Shipment Contract

Answer 4

Risk of loss is passes when the goods are placed in the hands of a carrier at the seller’s loading dock

Question 5

Anticipatory Breach of Contract - Non-breacher’s Rights

Answer 5

Right to demand assurance of performance OR cancel the contract

Question 6

Amount of Liquidated Damages Seller’s can keep

Answer 6

$500 of the buyer’s deposit on the buyer’s breach

Question 7

Anticipatory Repudiation

Answer 7

Occurs when the buyer or seller indicates in advance of performance that he or she will not perform (an immediate breach of contract)

Question 8

Risk of Loss in a Shipping Contract

Answer 8

Risk and loss pass to the buyer when the goods are placed in the hands of the carrier.

Question 9

Risk of Loss in a Destination Contract

Answer 9

Risk and loss pass to the buyer when the goods reach their destination and are tendered.

Question 10

Owner of a Copyright’s Rights

Answer 10

May reproduce, prepare derivatives, distribute, and perform the work

Question 11

Fair Use

Answer 11

The right of persons who do not own the copyright to use parts of the protected work without the owner’s permission for purposes of teaching, criticism, news reporting, and the like.

Question 12

Order Paper

Answer 12

is three-party paper where one person orders another to pay a third person - Example: Draft

Question 13

Certificate of Deposit (CD)

Answer 13

a two-party paper where a bank acknowledges receipt of money and promises to pay

Question 14

Check

Answer 14

A three party draft drawn on a bank and payable on demand.

Question 15

Trade Acceptance

Answer 15

A three party order paper that contains an order to a third party rather than a promise to pay.

Question 16

Promissory Note

Answer 16

A two-party paper where one party promises to pay.

Question 17

To be a holder of an order paper

Answer 17

1. Have all necessary signatures (including one from transferor)
2. Possession of the instrument must have been transferred.

Question 18

Draft

Answer 18

A three party paper that contains an order to pay instead of a promise to pay.

Question 19

To Be Negotiable

Answer 19

Must be payable on demand or at a definite time

Question 20

Bill of Lading

Answer 20

A document of title that provides evidence that a common carrier has received.