UCC Article II Flashcards
When a buyer of goods accepts non-conforming goods, what measure of damages is he entitled to recieve?
A buyer who has accepted non-conforming goods may keep the goods and recover damages “for any loss” resulting from the breach, including lost profits.
(True/False): UCC Article II applies to the Sale of Goods and Services.
False, UCC II only applies to the sale of “Goods,” it does not apply to the sale of “Services.”
When a buyer of goods lawfully rejects a shipment for lateness, what is the correct measure of the buyer’s damages recoverable if buyer sues seller?
The difference between the market value of the goods and the contract price plus the lost profits as a result of rejecting the shipment.
(True/False): If the parties to a sales contract do not set a specific time of performance for any obligation under the contract, the contract must be performed within 30 days from the date the contract was formed.
FALSE, the contract must be performed within a reasonable period of time.
In an installment contract, a late-delivered installment of goods can be rejected only when:
Because of the lateness, the value of the shipment was substantially impaired.
If a contract is for a mix of goods and services, it should be governed by the…
“predominant purpose rule.”
(TRUE/FALSE): Fixtures are considered goods and governed under UCC Article II.
FALSE. Fixtures are NOT governed under UCC Article II.
Tiles in a home are unlikely to be considered fixtures because…
they differ in the degree and permanence of affixation from fully integrated structural systems.
A transaction for the sale of goods for $500 or more requires…
a writing capturing the material terms and signed by the party to be charged.
Items are likely to be considered goods if they are…
moveable items at the time of identification to the contract.
A contract for goods may form an enforceable contract, even when over $500 and lacking a signed writing because…
they are specifically manufactured, and thus fall under an exception of the SoF.
Goods are likely to be considered specially manufactured if they are…
Not suitable for sale to others in the ordinary course of the seller’s business; and, if the seller had to make a special commitment for their procurement.
Why does the specially manufactured goods exception to the statute of frauds exist?
Because penalizing an innocent party would defeat the purpose of the statute of frauds.
A merchant’s confirmatory memorandum makes a contract enforceable unless…
objected to within 10 days.
Merchant confirmatory memos are enforceable if the sale is between…
two merchants.
The doctrine of part performance may…
make a contract enforceable.
Under the doctrine of part performance, to the extent a contract has already been performed in good faith…
it may become enforceable despite the lack of a traditional writing compliant with the Statute of Frauds.
Why does the part perfomance exception to the SoF exist?
To prevent fraud and avoid wrongly penalizing an innocent commercial party.
An express warranty is an…
affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain.
Where the seller, at the time of contracting has reason to know of the particular purpose for which the goods are required, and the buyer is relying on the seller to furnish suitable goods, an….
implied warranty that the goods sold are fit for the particular purpose arises.
Goods sold by a merchant generally must be fit for…
their ordinary purpose.
Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like….
“as is,” or “with all faults.”
