SU #18 (All other)

Question 1

Shipment Contract

Answer 1

The seller must place the goods in the care of the designated carrier & make reasonable contract for their transportation to the buyer (obtain & Tender) risk of loss passes to the buyer

Question 2

Destination Contract

Answer 2

The seller must transport the goods at its own risk an expense to the destination and duly tender them

Question 3

Commercial Impracticability

Answer 3

excuses non-performance by a subsequent event not reasonably foreseeable by the parties at time of contracting

Question 4

Identification

Answer 4

before title can pass, the goods must exist & be identified to the contract

Question 5

Passage of Title

Answer 5

1. Passes to the buyer at the time & place at which the seller completes performance of physical delivery
2. delivery without moving (when warehouse is in possession of goods)
3. Time and place that seller delivers documents
4. If goods are identified at time of contracting, title passes at time of contracting

Question 6

Express Warranties

Answer 6

are any statements of fact or promises made by any seller to buyer that become part of their agreement. Any description of goods, sample or model. It may be oral or written

Question 7

Implied Warranty of Merchantability

Answer 7

arises by operation of law and need not be written. The warranty is implied in every sale by a merchant who deals in goods of the kind sold. The buyer need not be a merchant

1. The issue is whether the goods are fit for the ordinary purposes for which such goods are used

Question 8

Implied Warranty of Fitness for a Particular Purpose

Answer 8

Also arises by operation of law. This warranty is implied whenever any seller knows

1. the particular purpose for which the goods are to be used
2. The buyer is relying on the seller to select suitable goods

Question 9

Product Liability

Answer 9

when a manufacture or seller of a product is liable if a defective product is placed in the market and causes injury

Question 10

Product Liability Negligence

Answer 10

1. negligent design
2. manufacturing flaw
3. failure to inspect
4. failure to warn

Question 11

Perfection

Answer 11

is the process by which secured party obtains priority over most 3rd parties who may claim an interest in the collateral

Question 12

Security Interest are perfected by

Answer 12

1. filing a financing statement
2. possession or control of the collateral
3. delivery of a registered certificated security
4. Automatically (PMSI) in consumer goods

Question 13

Priority of Perfected Interest

Answer 13

Priority usually dates from the time of filing or perfection, whichever is 1st