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Reg New > UCC > Flashcards

UCC Flashcards

1
Q

What are goods as defined in article 2 of the UCC?

A

Moveable, tangible things

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2
Q

What is a merchant?

A

Someone who regularly deals in goods

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3
Q

Does the UCC Sales code apply to merchants or non-merchants?

A

Both

Although merchants are held to a higher standard

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4
Q

Offer and Acceptance under the UCC is different than under common contract law. T or F?

A

True

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5
Q

What is a merchant’s firm offer?

A

If the seller is a merchant who in signed writing promises to keep an offer open, this is a firm offer.

Article 2 UCC, in sale of goods

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6
Q

If no time is stated, how long is a firm offer open?

A

A maximum of 3 months

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7
Q

For a contract for a sale of goods involves a non-merchant, what kind of law applies?

A

Common law not UCC.

Offer must match acceptance

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8
Q

If there’s a sale between 2 merchants, can the contract terms change after the sale takes place?

A

Yes

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9
Q

For UCC sales purposes, what must be stated in the contract?

A

Consideration

Although there are exceptions

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10
Q

What are the exceptions to the rule that a UCC sales contract must state consideration?

A

Output contract - buyer agrees to buy the sellers entire output of goods for a stated period of time.

Requirement contract - seller of goods agrees to sell a specific required output for a stated period.
(Ex. 15000 yards of denim for 3 months)

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11
Q

What is the passage of title?

A

When a party (buyer or seller) assumes the rights and responsibilities for the goods identified in the contract.

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12
Q

What piece(s) of information should be included in the contract regarding passage of title?

A

Time
Place

When goods pass to buyer

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13
Q

What is risk of loss?

A

Risk of loss dictates which parties bear the risk of goods being damaged or destroyed.

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14
Q

Generally, what determines who bears the risk of loss?

A

The party who currently holds the title to the goods bears the risk of loss.

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15
Q

What is a transfer of title?

A

When the ownership of goods has been transferred from seller to buyer through a sale.

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16
Q

When does the Seller bear the Risk of Loss

A
  1. When holding goods for the buyer
  2. “Sale on Approval” transactions
  3. When goods are held by a 3rd party
17
Q

If a seller isn’t a merchant, and uses Fedx to deliver the goods, when does the risk of loss transfer to the buyer?

A

When the seller completes the tender of delivery.

18
Q

When the seller is a merchant, Who doesn’t use a carrier like FedX, when does the risk of loss transfer to the buyer?

A

When the buyer takes possession of the goods.

19
Q

When “shipping point contract” or “free on board” are used, when is risk of loss transferred to the buyer?

A

When the carrier picks up the goods from the seller.

20
Q

What is destination point contract? Or FOB destination?

A

When the risk of loss transfers to the buyer when the buyer receives the goods.

21
Q

Under the UCC, are all sales final?

A

Yes

Unless it’s a sale on approval or a contingency sale.

22
Q

What’s a sale on return?

A

Same as a contingency sale.

Whereby some kind of event needs to be resolved in order for a sale to occur.

23
Q

In a consignment store, are consignment items considered to be part of the store’s inventory?

A

No

24
Q

What is an express warranty?

A

A promise or guarantee that a buyer relies on when they purchase an item. Such promises form the basis of the bargain.

25
Q

What is an Implied warranty of title?

A

There are no encumbrances to the transfer of a title.

26
Q

What is an implied warranty of merchantability?

A

That the goods bought will work properly for the use for which they are designed. They are what they say they are - must conform to buyer’s expectations.

27
Q

What is a warranty of fitness?

A

Implied when the buyer relies upon the seller to select the goods to fit a specific request.

28
Q

What are the two types of tort liability that occur under the UCC?

A
  1. Strict product liability

2. Negligence

29
Q

Under the UCC, What is strict product liability?

A

When a product that is defective (and unreasonably dangerous), causes injury to the buyer, the seller has strict product liability.

30
Q

Under the UCC, what is Negligence?

Tort liability

A

When a seller breaches a duty of care in the sales of a product that causes injury to a buyer.

31
Q

Under the UCC, what are buyer and seller remedies?

A

The rights a buyer or seller has when when the other party doesn’t perform on a sales agreement (breach of contract).

32
Q

List some buyer remedies

A

Cancel sales agreement
Require specific performance
Recover damages

33
Q

List some seller remedies

A 
Stopping delivery of goods to buyer
Reclaiming goods that have already been sent
Reselling goods to another buyer 
Demand performance 
Recover damages

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