Sales Contract - 14

Question 1

What is an output contract

Answer 1

This is a contract that says that the seller will sell to the buyer everything that they produce

This is an enforceable output contract

Question 2

IS an oral agreement to sell goods for more than $500 enforceable

Answer 2

Normally they are not enforceable because they should be in writing. An exception is when the goods have been custom manufactured for the customer

In this case the buyer is on the hook for the entire contract price

Question 3

What is a warranty of title

Answer 3

This provides assurance that the buyer is obtaining the goods free from any other claims

It is present in ALL sales of goods unless disclaimed

It is implied - so no need to be in writing

Question 4

What are your rights as a buyer under UCC Sales Article

Answer 4

• Buyer has the righter to buy a substitute good (cover)
• or a right to capture identified goods (capture)
• they can demand specific performance if unique goods are involved

Question 5

Can a buyer sue for punitive damages under UCC Sales Article

Answer 5

No - they can not

Question 6

What is the implied warranty of merchantibility and can you disclaim

Answer 6

The implied warranty of merchantability is the automatic warranty say that the goods are in fair condition for their normal and ordinary purpose

It is implied when a a seller is a merchandiser

It can be disclaimed in writing or oral by the merchandiser

Question 7

To establish a strict liability claim what must the plaintiff establish

Answer 7

That the defendant was in the business of selling the product

Question 8

What does UCC cover

Answer 8

It cover s the sale of goods not services

sale of services is covered by common law not UCC

Question 9

What is an express warranty and and an example

Answer 9

AN express warranty happens when you are given a sample, you approve sample and when the shipment arrive you can judge if the actual shipment is like or not like the sample

The sample become the basis of the bargain

Question 10

If you do not have it written in the contract where the item will be deliver, the time frame for payment or the right to inspect - what rights for the buyer is implied

Answer 10

the buyer will pick them up at the seller

seller only need stop hold the goods

Buyer is entitled to inspect the goods before accepting them

Payment is due at the time the goods are picked up

Question 11

Can a buyer request a guarantee of performance by the seller

Answer 11

Yes they can

If the seller refuses to give the guarantee of performance when requested the buyer can cancel the contract

Question 12

What does strict liability imply

Answer 12

That there is no need to prove negligence on the part of the defendant

It is the product that is defective and damages occurred because of the defect

Question 13

What is contributory negligence

Answer 13

This is when the buyer misused the product

Question 14

what defense can you as a manufacurer use in a negligence case

Answer 14

You can say that you followed the customary practices of an industry

Question 15

What kind of sales are involved in the UCC Sales article

Answer 15

goods or tangible personal property

Question 16

What are some of the specific rules to UCC Sales Article

Answer 16

• many obligations that are only applicable to merchants include:
• honoring a firm offer
• both parties must perform it in good faith
• all sales are covered regardless of price

Question 17

What is a implied warranty of titles

Answer 17

It arises automatically - does not have to be written

• the seller must deliver the goods free from any lien that the buyer was not aware of at the the time the contract was made
• applies to all sales - not just merchandisers

Question 18

When goods are sent pursuant to a shipment contract - who is generally responsible for freight charges

Answer 18

The buyer is responsible for freight expenses

Question 19

What kind of liability does a common carrier have

Answer 19

strict liability for the goods it transports

Question 20

What is a warranty of title

Answer 20

This automatically exists in all sales

Question 21

How is a firm offer created

Answer 21

It must be created by a merchant, must be in signed writing, and it must be for a reasonable period of time

Question 22

What is a sale or return contract

Answer 22

Under the Sales Article of the UCC, a sale or return contract transfers title and risk of loss to the buyer at the time of sale but they revert back to the seller if the goods are returned.

Question 23

What happens in a COD arrangement

Answer 23

In a C.O.D. arrangement, the buyer must pay the carrier for the goods before the carrier may tender delivery, after which the buyer may possess the goods and perform inspections.

Question 24

Under UCC CAN you make a change to the contract and have it be binding

Answer 24

In a contract for the sale of goods covered under Article 2 of the UCC, a contract modification, such as a change in the delivery date, will be binding without additional consideration.

Question 25

What is anticipatory breach

Answer 25

This is when you are told ahead that the contract will not be honored. This allows the otters party to take actions to minimize losses and then sue for the net losses remaining

Question 26

What is a sales on approval arrangement

Answer 26

n a sale on approval arrangement, both risk of loss and title pass to the buyer when the buyer accepts the goods or after the trial period for approval has passed.

Question 27

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

Answer 27

Under the UCC, only the type and quantity of goods involved needs to be explicit to create an enforceable contract for a sale of goods.

Question 28

When can a buyer reject goods

Answer 28

the buyer may reject goods if the goods are defective or nonconforming.

Question 29

what is bailment

Answer 29

A bailment exists when the owner of personal property delivers it to the possession of another party, who is entrusted with the item with the obligation to return or dispose of it according to the owner’s directions.

Question 30

What happens when a merchant ships non conforming goods

Answer 30

when a merchant ships nonconforming goods, risk of loss remains with the seller regardless of the shipping terms.

Question 31

What happens when one party to a contract is in breach - is the contract void or voidable

Answer 31

When one party to a contract is in breach, such as a seller shipping nonconforming goods, the contract may be voided by the other party, but not the one responsible for the breach. As a result, the contract is neither invalid nor void. When a delivery date is not specified, it is expected that goods will be delivered in a reasonable time and the contract would not be invalid. It is voidable by the buyer since nonconforming goods were shipped by the seller.

Question 32

what happens when you are contracted to make 1oo custom things and you only make 85

Answer 32

since the contract called for the shipment of 100 custom cabinets, standard cabinets are nonconforming goods and represent a breach of contract.

The fact that the buyer may accept nonconforming goods is not an indication that there is no breach.

In addition, a counteroffer may be made prior to entering into a contract, but not once it has been entered into.

Question 33

Axle is entitled to specific performance from Grand because of the unique nature of the goods.

Answer 33

When nonconforming goods are shipped, a buyer will generally cover by obtaining conforming goods from an alternate source with any additional cost recoverable from the seller. When goods are unique, however, resulting in the inability of the buyer to obtain satisfaction otherwise, such as the case with custom cabinets, specific performance would be an appropriate remedy.