REG- Sales Law

Question 2

REG

What sales are covered under the Uniform Commercial Code (UCC)?

Answer 2

Only sales of GOODS are covered under the UCC.

Question 3

REG

What elements are needed for a sale covered under the Uniform Commercial Code (UCC)?

Answer 3

Offer - You offer to sell something at a price

Acceptance - the other party accepts

Consideration - Something of value has been exchanged for the goods

Note: The UCC only covers sales of goods.

Question 4

REG

What are the elements of a Firm Offer?

Answer 4

You offer to sell something at a price and keep that offer open for a set period of time

3 months max

Only merchants can make firm offers

Must be in writing and signed

Question 5

REG

Under what situations are sales of goods covered by the Statute of Frauds? What are the exceptions?

Answer 5

If value of goods sold is >$500, sales contract must be in writing

Exceptions: Merchants can enter into oral contracts for > $500 items.

Oral contracts are binding for special or uniquely-made items (i.e. custom cabinets or custom furniture that could not be sold if buyer reneged)

Question 6

REG

When does title and risk of loss transfer on a sale of goods?

Answer 6

If terms are:

FOB shipping point: Title transfers at point of shipment (i.e. when loaded on truck)

FOB destination: Title and risk transfers once item is delivered

Question 7

REG

What is a Warranty of Title?

Answer 7

The seller has the right to sell the good and no one else can stake claim to that good

All items sold must have Warranty of Title

Can NOT be disclaimed

Question 8

REG

What is Warranty of Merchantibility?

Answer 8

This good will do its intended purpose

Can be disclaimed

Question 9

REG

What is Warranty of Fitness?

Answer 9

This good is the right choice for you based on the seller’s expert opinion

Can be disclaimed

Question 10

REG

What is strict liability with respect to buyer protection?

Answer 10

Manufacturers of goods cannot disclaim that their products will be safe

Can be liable if negligent

Question 11

REG

What are non-conforming goods with respect to buyer protection?

Answer 11

Buyer can reject some or all of the shipment if the seller didn’t perform as agreed and ship what was expected

Must give notice

Must give seller a chance to remedy the situation

Question 12

REG

What is the statute of limitations with repect to buyer protection?

Answer 12

Buyer must sue to recover damages within 4 years.