Sales Law

Question 1

Uniform Commercial Code (UCC)

Answer 1

governs sale of goods

Question 2

Sale of goods has 3 elements

Answer 2

Offer
Acceptance
Consideration

Question 3

Consideration

Answer 3

something of value has been exchanged for the goods

Question 4

Statute of frauds

Answer 4

if goods value >$500, contract must be in writing

oral contracts binding for special goods

Question 5

FOB Shipping Point

Answer 5

title transfers at POINT OF SHIPMENT ( loaded onto truck)

Question 6

FOB Destination

Answer 6

title transfers once truck arrives at BUYers place and is “delivered”

Question 7

Warranty of title

Answer 7

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

Question 8

Warranty of Merchantability

Answer 8

good will do its intended purpose

can be disclaimed

Question 9

Warranty of Fitness

Answer 9

good is the right choice for you based on sellers expert opinion
can be disclaimed

Question 10

Strict Liability

Answer 10

manufacturers of goods cannot disclaim that their products will be safe
can be liable if negligent

Question 11

Non-conforming goods

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 chance to remedy situation