UCC Article 2 Sales

Question 1

What items should be in writing under UCC Statue of Fraud?

Answer 1

The signature of person to be charged
The qty of item
Written evidence of a contract.

Everything else can be oral to be enforced.

Question 2

What happens if a merchant send a signed purchase order(confirmatory memorandum) to another merchant?

Answer 2

This is an exception to statue of fraud since it is between two merchants. The merchant receiving the memorandum should object in writing within 10 days if he does not want to perform the contract. Else the contract is binding even it the contract was oral.

Question 3

What is the other name for FOB shipping? For FOB Destination?

Answer 3

Shipping Contract; Non-Shippment contract.

Question 4

What does tender delivery mean?

Answer 4

The time the good are made available to the buyer by the seller. The seller need not even deliver the good. If they are available to buyer for pickup the risk of loss passes form seller to the buyer.

It is different than the agreed upon time of delivery.

Question 5

What is the affect of passage of title on risk of loss?

Answer 5

No affect. The risk of loss is determined by the type of contract parties get into namely FOB destination or FOB Shipment.

Question 6

Is the warranty express or implied when seller selects products knowing the intended use by the buyer?

Answer 6

Implied

Question 7

What are the three types of express warranties under UCC article 2?

Answer 7

1. Affirmations of fact or promises
2. Description of the goods
   3 Sample or model - Bulk will conform exactly to the sample.

Question 8

What are the three types of implied warranties under UCC Article 2?

Answer 8

Implied warranty of merchantability
Implied warranty of purpose of use
Implied warranty of the usage of trade

Question 9

Do seller need to include the word warranty or guaranty for the warranty to be express?

Answer 9

No

Question 10

Are oral warranties enforceable?

Answer 10

Yes,

Proof of these warranties might be an issue however from an absolute law basis the warranty is enforceable.

Question 11

What is strict liability?

Answer 11

It means that the seller has to pay the damages no matter how much fault he shares.
Merchant sellers are strictly liable for the goods they sold if it was used in it’s intended purpose