Special Deck - Sales2

Question 1

What are the 3 implied warranties?

Answer 1

1. Merchantibility-claims the goods are fit for their normal use
2. Title-promises clear title to product with no undisclosed liens
3. Fitness for a particular purpose-when seller promises the goods will meet a specific need of the buyer.

Question 2

What is an express warranty?

Answer 2

A warranty referring to SPECIFIC promises and claims about the goods made by the seller.

Question 3

When a common carrier is not involved when do title and risk of loss pass from seller to buyer?

Answer 3

• TItle passes when contract is formed
• Risk of loss passes:
  
  • If merchant once buyer has received goods and removed them from merchants premises
  • if non-merchant, ROL passes as soon as seller tenders the goods to buyer.

Question 4

Statute of Frauds refuers to certain contracts need to be in writing.

What types? What is the Acronym?

Answer 4

Acronym: GROSS

• Goods worth $500 or more
• Real estate sales
• Over 1 year to perform (Bilateral contract)
• Suretyship

Question 5

At what time during an auction may an item be removed from bidding?

Answer 5

With reserve, at anytime.

Without reserve, only if there are no bids.

Question 6

Does a bailee ever assume risk of loss udring a bailment?

Answer 6

No, if the items are not moved.