REG - 7

Question 1

Is real property assignable?

Answer 1

Unless the contract terms prohibit assignment or the rights are personable to the person rendering them, or the assignment will materially increase or alter the risk or duties of the obligor, contract rights are generally assignable

Question 2

What must be made before a contract is enforceable under the UCC Sales Article

Answer 2

Acceptance must be made before a contract is enforceable.

One can accept open terms such as price, time of delivery, payment, and quantity because the UCC encourages the formation of agreements

Question 3

Under the Sales Article of the UCC, what requirement must be met for a writing to be an enforceable contract for the sale of goods?

Answer 3

The writing must contain a term specifying the quantity of the goods.

To be valid, the contract must specify the subject matter and if there is more than one, there must be a quantity. You cannot form a contract with “I will sell you some bicycles.”

Question 4

Confirmatory Memorandum

Answer 4

If between merchants a confirmatory memorandum is sent and is not objected to in writing within 10 days by the merchant receiving it, then the Statute of Frauds is satisfied. Webstar must, therefore, honor this valid oral contract.

Question 5

Under the UCC when a buyer orders (unilateral offer to buy) goods shipped by a seller, a seller can accept that offer by:

Answer 5

1. shipment of conforming goods
2. a prompt promise to ship conforming goods, OR
3. shipment of nonconforming goods without notice of accommodation (results in acceptance and breach of contract)

Question 6

What does the Statute of Frauds under the UCC require to be in writing in order for the oral contract to be enforceable?

Answer 6

Only the signature of the person to be charged and the quantity of goods ordered.

Question 7

Under a SHIPMENT CONTRACT when does the risk of loss pass to the buyer?

Answer 7

When the goods are given to a common carrier

Question 8

What are the three types of EXPRESS WARRANTY under the Sales Article of the UCC?

Answer 8

1. affirmations of fact or promises
2. description of the goods
3. sample or model - bulk will conform exactly to the sample

Express warranties MUST be part of the basis of the bargain between buyer and seller

Question 9

implied warranties

Answer 9

1. implied warranty of fitness for a particular purpose
2. implied warranty of merchantability
3. implied warranty of the usage of trade

Question 10

warranty of fitness for a particular purpose

Answer 10

arises only when the seller knows of the buyer’s use and that the buyer is relying on the seller’s expertise to select goods that the buyer can use for that specific purpose.

awareness is the key

Question 11

When and how can an implied warranty of merchantability be disclaimed?

Answer 11

Either orally or in writing and must include the word merchantability and, if in writing, this must be conspicuous.

Question 12

8 Year Rule under Chapter 7

Answer 12

A debtor may seek a discharge under Chapter 7 so long as he or she has not had a discharge in the previous 8 years

Question 13

Can Corporations and Partnerships go through a Chapter 7 liquidation?

Answer 13

Yes, but they do not qualify for a general discharge from all remaining debts as natural persons do.