UCC

Question 1

UCC – Delivery Obligation

Answer 1

Either Shipment Ks or Destination Ks.
FOB means “free on board.”
If city is where seller is located → shipment K. If buyer’s city → destination K.

Question 2

UCC – Risk of Loss

Answer 2

Determined by agreement.

Breach (even slight) shifts risk of loss.

Question 3

UCC – Risk of Loss:

Delivery by Common Carrier

Answer 3

Shipment K → risk of loss to buyer when seller delivers to carrier.
Destination K → risk of loss to buyer when seller delivers to buyer.

Question 4

UCC – Risk of Loss:

If No Common Carrier Used

Answer 4

Merchant seller → risk of loss to buyer on receipt of goods.
Non-merchant seller → risk of loss to buyer upon tender.
If risk of loss on buyer → buyer pays full K price.
If risk of loss on seller → possible liability on seller for non-performance.

Question 5

UCC – Express Warranties

Answer 5

Seller liable for breach (statements of fact, promises, description of goods, etc.).

Question 6

UCC – Implied Warranty of Merchantability

Answer 6

Implied in K if dealing in goods of that kind. Goods must be fit for their ordinary purpose.
All Ks have implied warranty of good faith and fair dealing.

Question 7

UCC – Implied Warranty of Fitness for a Particular Purpose

Answer 7

Implied that goods are fit for particular purpose if:

1) Seller has reason to know of particular purpose; and
2) Buyer relies on seller’s skill and judgment when buying goods.