Sales Law Flashcards

1
Q

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

A

Only sales of goods are covered under the UCC.

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2
Q

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

A

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.

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3
Q

What are the elements of a Firm Offer?

A

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

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4
Q

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

A

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)

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5
Q

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

A

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

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6
Q

What is a Warranty of Title?

A

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

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7
Q

What is Warranty of Merchantability?

A

This good will do its intended purpose

Can be disclaimed

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8
Q

What is Warranty of Fitness?

A

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

Can be disclaimed

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9
Q

What is strict liability with respect to buyer protection?

A

Manufacturers of goods cannot disclaim that their products will be safe

Can be liable if negligent

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10
Q

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

A

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

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11
Q

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

A

Buyer must sue to recover damages within 4 years.

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12
Q

When does seller create an express warranty?

A

If warranty forms part of the basis of negotiation

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13
Q

What recourse does seller have if goods sold on credit and debtor is insolvent? What exception are there?

A

Seller may reclaim goods sold on credit of demand is made within 10 days. Limit doesn’t apply f buyer made written misrepresentation of solvency within last 3 months.

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14
Q

what is unique about signing a firm offer in a contract?

A

Merchant must separately sign the clause that states the firm offer, general signature for entire contract is not sufficient.

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15
Q

If lessee intends to purchase equipment at the end of the lease, when does title pass to lessee?

A

When goods are delivered, do not need to wait to the end of lease.

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16
Q

Under UCC what 3 things are necessary for formation of a contract?

A

Quantity, indicate existence of a contract, signed by parties to be charged

17
Q

When does risk of loss pass to buyer?

A

When delivery is tendered, unless a merchant

18
Q

Is shipping nonconforming goods a form of acceptance?

A

Yes

19
Q

What happens when a seller informs the buyer they are shipping nonconforming goods?

A

Counteroffer

20
Q

What is not allowed in formation of enforceable sale of goods contract?

A

Open acceptance

21
Q

Who needs to sign a PO in a sale between merchants?

A

Only the sending party

22
Q

What liability does a common carrier have? Exceptions?

A

Strict liability. Not liable for acts of God even if insured, poor packing by seller

23
Q

Can seller disclaim personal injury on consumer goods?

A

No

24
Q

What conditions does COD put on a buyer?

A

Can reject nonconforming goods, cannot inspect.

25
Q

What is the UCC statute of limitations? What is the minimum if stated in contract?

A

4 years, at least 1 year