Reg Sec 14 Flashcards
Under Sales Article of UCC
Article 2 of the UCC
offer is made by merchant in a signed writing. In an intentional breach of contract, there buyer has the right to demand assurance of performance and right to cancel the contract.
Article 2 covers the sale of goods, not services. Contract modification such as a change in delivery date is binding. if contract is less than $500 its not subject to statue of fraud and contract can be oral.
Statute of frauds
Risk of loss in sale of goods
GROSS. Goods worth 500 or more, Real estate sales, Over one year required to perform contract, Suretyship, Statements in consideration of marriage.
Shipping terms will determine the point at which the risk of loss transfers from the seller to the buyer.
FOB place of shipment contract
sales or return
the risk of loss passes to buy when the goods are delivered to the carrier.
risk of loss rest with the buyer until the goods are returned to the seller.
Strict liability
Warranty of title
does not require proof of negligent or fault. Strict liability requires that the product was defective and that damages occurred because of the defect in product.
assurance that the buyer is obtaining the goods free of any ownership claims that haven’t been revealed to buyer.
Breach of implied warranty of merchantability
Bailment
Only applies when the seller of a product is a merchant. and can be written or oral statement by the merchant.
Bailment exist when owed of property delivers to another party, with obligation to return or dispose of it according to owner’s directions.
Risk of loss to buyer UCC
Bailment
Title and risk of loss are transferred to the buyer when the goods are given to common
carrier.
Bailment exists when owner of property delivers possessions of another party for return or dispose of it according to the owner’s direction.
Warranty of fitness
Sale of Goods UCC
implied when relying on seller’s skill and judgment.
only the type and quantity for goods involved needs to be in writing
