Module 27 Cards.txt

  1. UCC Sales must involve:
    - Goods
  2. Under Ucc, A firm offer is, even without consideration:
    - Irrevocable
  3. Under UCC, In order for a firm offer to be irrevocable, it must have 3 elements:
    • - Must be a merchant, in writing and guaranteeing it will be held open
    • - it is irrevocable for the time stated, but max of 3 months
    • - if no time is stated, it is irrevocable for a reasonable time
  4. Under UCC, If there are minor changes between merchant, the contract:
    - may still have valid acceptance, unless no changes are to be made according to the contract
  5. Under the UCC, the mailbox rule states that acceptance is valid when:
    - sent with any reasonable means of communication
  6. Under the UCC, the prompt shipping of ordered goods also counts as:
    - proper acceptance, even if the goods are non-conforming (though this might be a breach)
  7. Under the UCC, you may modify a contract without added consideration if:
    • - the contract is under $500, otherwise the modification must be made in writing
    • - the modification must be made in good faith
  8. Under the UCC, duties of the seller include:
    • - Conforming goods for buyer
    • - give reasonable notification
    • - make perfect tender (no defects)
    • - if no place of delivery is stated, the seller's place of business is the place
    • - if specified delivery is impractical, seller may substitute a different means
  9. Under the UCC, the duties of a buyer include:
    • - accept conforming goods
    • - paying at time of delivery
    • - paying by any reasonable means
    • - right to inspect prior to payment, except for COD sales
    • - buyer might revoke an acceptance for substantial defects
  10. Under the UCC, a buyer may reject nonconforming goods for:
    • - any nonconformity
    • - may reject all, some, or none of the goods
    • - rejection returns title to seller
    • - must notify seller within a reasonable time
    • - seller has a right to cure by notifying buyer of correction
  11. Under the UCC, statue of fraud (no writing required even if over $500) exceptions include:
    • - specially manufactured goods
    • - payment of goods or receipt of goods
    • - admissions in court
    • - merchants conforming letter (if no objection within 10 days)
  12. Under the UCC, title and risk of loss pass when:
    • - the goods must be first identified (marked or tagged for a buyer)
    • - once identified, the most important factor is the agreement between the parties
  13. Under the UCC, transportation by common carrier are either:
    - FOB shipping or destination contract
  14. Under the UCC, an FOB shipping contract is:
    - risk of loss passes when the seller delivers goods to carrier
  15. Under UCC, destination contracts are:
    - risk of loss passes when seller gets goods to the designated destination and notifies buyer of delivery
  16. Under the UCC, if unclear between FOB shipping or destination, then contract is:
    - FOB shipping
  17. Under the UCC, , If there is no common carrier:
    • - title passes as soon as contract is made with identified goods
    • - risk of loss with merchant sellers pass when buyer take possession
    • - risk of loss with nonmerchants passes on delivery
  18. With nonconforming goods, risk of loss is always:
    • - on the seller
    • - title passes when seller completes delivery
  19. Under the UCC, Buyer/seller will have an insurable interest when:
    • - buyer, goods are identified
    • - seller, if seller has any risk of economic loss or title
  20. Different FOB (free on board) contracts:
    • - FOB seller's loading dock is a shipment contract
    • - FOB buyer's loading dock is a destination contract
  21. CIF means the price includes:
    • - cost of good
    • -Insurance
    • - freight
  22. A sale on approval means:
    - neither risk of loss nor title pass until buyer approves
  23. Sale on return means:
    - buyer gets risk of loss and title on delivery, but may return goods
  24. Under the UCC, An implied word requires:
    • - no words, either oral or written
    • - can be disclaimed, if conspicuous
    • - cannot disclaim liability for personal injury
  25. Merchantability means that:
    • - goods are fit and safe in normal uses
    • - can be disclaimer by an as is (with all fault) sale or by telling buyer no warranty of merchantability
    • - disclaimer can be oral
  26. The 3 warranties of title are:
    • - title (good title)
    • - encumbrances (no unstated liens or attachments)
    • - infringements (no patent or trademark violations)
    • - disclaiming title requires specific language
  27. Fitness for a particular purpose warranty requires:
    • - reliance from buyer on seller to select suitable goods
    • - if buyer relies, goods must be fit for their purposes
    • - a writing is required to disclaim fitness
  28. A buyer may sue a seller for:
    • - any misrepresentation of fact
    • - opinions and statements of values don't count unless made by an expert
    • - conformity to description, sample or model is an express warranty
  29. Under the UCC, a buyer can obtain remedy by:
    • - rescinding and suing for damages
    • - may cover (purchase suitable goods elsewhere and charge seller for losses)
    • - may recover goods from seller if prepaid and goods are identified
    • - specific performance may be used if goods are unique or buyer cant cover
  30. Under the UCC, a seller can obtain remedy by:
    • - reselling and suing for damages
    • - may stop delivery and demand cash, if a credit sale and buyer becomes insolvent
    • - if goods were already delivered, seller can reclaim within 10 days. No limit if buyer misrepresented solvency
  31. Under the UCC, statute of limitation suits must be brought within:
    • - 4 years
    • - by agreement it can be limited to a minimum of 1 year
  32. Under the UCC, injured parties can sue for ordinary negligence by showing:
    - showing 4 elements of negligence
  33. Under the UCC, strict liability (no defense) in tort must show 5 elements:
    • - Defective product
    • - Cause
    • - Unreasonably dangerous
    • - Business (seller engaged in it)
    • - Changes (none before goods reached buyer)
Card Set
Module 27 Cards.txt