UCC Sales Flashcards
Implied warranty of merchantability?
Merchant in
goods of that kind
speaks to one who deals in goods of that kind
implied warrant of fitness for a particular purpose?
seller knew the buyer’s particular purpose and that the buyer relied upon the seller to furnish suitable goods.
revocation of acceptance
VA law allows ROA as a remedy for a buyer if the buyer:
accepted the goods
on a reasonable belief the the defect would be cured and it has not been, or
if the buyer accepted them because of the difficulty of discovering the defect or because of the seller’s assurance that they conformed to the contract
it must occur with a reasonable time after acceptance and the condition of the goods must not have substantiallly changed.
What is the exception to the writing requirement for goods over $500 under the SOF?
if (i) the goods are to be specially manufactured for the buyer, (ii) they are not suitable for sale to others in the OCB, and (iii) the seller has made either a substantial beginning of their manufacture or commitments for their procurement.
Adequate assurance of performance?
there must be reasonable grounds for insecurity about an inability to perform under the contract
The party must make a demand for assurances in writing and may suspend their performance for which they have not received an agreed return until such assurances have been made.
What are the four remedies for breach of contract for the sale of goods under the UCC?
stop shipment
sue for contract price + incidentals
sell the goods + incidentals (notice and reasonable)
sell the unfinished product
Express warranty
An affirmation of fact or promise made by the seller to the buyer of any description of the goods creates an express warranty if it is part of the basis of the bargain.
Fraudulent misrepresentation?
If a party induces another to enter into a contract through assertion of information he/she knows to be untrue, the contract is voidable by the innocent party if she/he justifiably relied on the misrepresentation.
Warranty Damages
the difference between the value of the goods as delivered and the value they would have had if they had been according tot he contract, plus incidentals and consequential damages.
Must give notice to seller within reasonable time of discovering defect.
