Legal Environment of Business Chapter 13

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  1. Sales Contract
    a contract for the sale of goods under which the ownership of good is transferred from a seller to a buyer for a price
  2. Sale
    the passing of title to property from the seller to the buyer for a price
  3. Tangible Property
    property that has physical existence and can be distinguished by the senses of touch, sight, and so on. A car is tangible property; a patent right is intangible property
  4. Merchant
    a person engaged in the pruchase and sale of goods. Under the UCC, a person who deals in goods of the kind involved in the sales contract, or holds himself or herself out as having skill and knowledge peculiar to the practices or goods involved in the transaction, or who employs a merchant as an intermediary
  5. Lease
    under the UCC, a transfer of the right to possess and use goods for a period in exchange for payment
  6. Lessor
    in a lease of personal property, a person who transfers his or her right to possess and use certain goods for a period to another in exchange for payment (rent)
  7. Lessee
    in a lease of personal property, a person who acquires the right to possess and use another's goods for a period in exchange for paying rent
  8. Firm Offer
    an offer (by a merchant) that is irrevocable without consideration for a stated period of time or, if no definite period is stated, for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be in writing and must be signed by the offeror
  9. Tender of Delivery
    under the UCC, a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessee whatever notification is reasonably necessary to enable the buyer or lessee to take delivery
  10. Conforming Goods
    goods that conform to contract specifications
  11. Perfect Tender Rule
    a rule under which a seller or lessor is required to deliver goods that conform perfectly to the requirements of the contract. A tender of nonconforming goods automatically constitutes a breach of contract
  12. Cure
    the right of a party who tenders nonconforming performance to correct that performance within the contract period
  13. Cover
    a buyer's or lessee's purchase on the open market of goods to substitute for those promised but never delivered by the seller. Under the UCC, if the cost of cover exceeds the cost of the contract goods, the buyer or lessee can recover the difference, plus incidental and consequential damages
  14. Express Warranty
    a seller's or lessor's oral or written promise or affirmation of fact, ancillary to an underlying sales or lease agreement, as to the quality, description, or performance of the goods being sold or leased
Card Set
Legal Environment of Business Chapter 13
Legal Environment of Business Chapter 13
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