REG - 8 Flashcards
Strict Liability
Merchant sellers are responsible to pay damages no matter how much fault they share.
When do express warranties arise?
When the seller as part of the bargain sells goods by description.
What can disclaim the warranty of title under the Sales Article of the UCC?
The seller’s statement that it is selling only such right or title that it has.
Does COD permit inspection before payment is made?
No, however if the goods turn out to be nonconforming, they may later be rejected by the buyer.
Does the IRC have a penalty for failing to disclose a conflict of interest when preparing a tax return?
No.
What is JEEP?
Joint Ethics Enforcement Program
Under the UCC Sales Article, the warranty of title may be excluded by
The seller’s statement that it is selling only such right or title that it has
A specific disclaimer that the seller is only passing what right or title seller has disclaims the implied warranty of title
When does the time limit on the statute of limitations begin to run?
From the time the contract is breached, limited to four years in a sale of goods.
Which of the following will not get CPA Sandy in trouble with the IRS?
A. Failing to furnish copies of returns to her clients.
B. Failing to sign returns she prepares and files.
C. Failure to furnish her preparer’s identifying number to her clients.
D. Failure to keep copies of the returns she prepares.
Ans. C
Under current rules, Sandy must furnish the preparer’s identifying number to the IRS but not to her clients.
Failure to keep copies of the returns she prepares violates 6695 and will get Sandy into trouble.
Anticipatory breach
Once a buyer notifies the seller that it intends to breach the contract
Right of Replevin
Recovering identified property that is being improperly held by the seller when the buyer cannot find another seller.
