Ch. 8 Sales Flashcards Preview

CLEP - Intro to Business Law > Ch. 8 Sales > Flashcards

Flashcards in Ch. 8 Sales Deck (29)
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1

sales represent _______ for goods.

contracts.

2

The ___ governs all transactions for the sale of goods.

UCC

3

______ is a person who buys or enters into a contract to buy goods.

buyer

4

_____ represent things that are movable at the time of the contract.

goods

5

________ is a person who ordinarily deals in goods of the kind sold or otherwise by her occupation holds themself out as having the knowledge or skill relevant to the goods involved in the transaction.

merchant

6

_____ is a contract pursuant to which a buyer purchases goods from a seller for a price.

sale

7

______ is a person who sells or enters into a contract to sell goods

seller

8

When two parties have exchanged written communications related to a sale of good, the UCC establishes rules for determining whether an offer and acceptance occurred. These written comms will be in the form of preprinted _____ and the process to assess whether an offer and accepted has occurred is often called the _______ of the forms.

forms; battle

9

If a merchant signs a written offer agreeing to hold an offer open, the offer will be ___________ for the period stated in the offer or for a reasonable amount of time if no period is stated.

irrevocable

10

Under the UCC, a buyer will be deemed to have _______ goods if:
a. after a reasonable opportunity to inspect the goods, the buyer indicates to the seller that the goods are ___________, or she will take them even though they do no conform.
b. after a reasonable opportunity to inspect the goods, the buyers _____ to notify the seller that she objects to the goods within a reasonable time OR
c. the buyer acts in a manner that is inconsistent with the seller's ownership of the goods.

accepted; conforming; fails

11

Under the UCC, a buyer can reject goods that ____ to conform in any respect to the contract terms. This is known as the "________ tender" rule.

fail; perfect

12

Under the perfect tender rule, unless the sale is related to an ___________ contract, when goods fail in any respect to conform to the contract, the buyer has the right to:
a. _____ them all
b. accept them all OR
c. accept any commercial unites and reject the rest.

installment; reject

13

If there is an installment contract, which is a contract that allows goods to be delivered in separate installments or lots, the buyer may reject goods ONLY if the nonconformity substantially _____ the value of that installment and cannot be ______ by the seller.

impairs; cured

14

If a buyer rejects goods b/c they are non-conforming and the seller has delivered the goods before the time provided under the contract, the seller may notify the buyer of her intention to ____ within a reasonable period of time and cure by delivering new conforming goods within the time provided under the contract.
If the time for delivery has ________, then the seller can cure within a reasonable time only if she has reasonable grounds to believe that the buyer would adjust the price to take any non-conformity into account.

cure; passed

15

The buyer cannot reject goods in an ___________ contract if the seller can cure.

installment

16

Once a buyer accepts goods, they are obligated to pay the price of the goods. The buyer's acceptance may be ________ if:
a. the goods are nonconforming and the nonconformity substantially _____ the ______ of the goods,
b. the buyer had accepted the goods either on the reasonable assumption that the nonconformity would be cured and they have not been timely cured OR without discovering the nonconformity, if such nonconformity was difficult to discover.

revoked; impairs the value

17

__________ must occur:
a. within a reasonable time after the buyer knew or should have known the basis for revocation AND
b. before there has been any substantial change in the condition of the goods. When properly revoked, it's treated as a _________>.

Revocation; rejection

18

When the buyer's acceptance includes additional terms, such terms are treated as _________ for inclusion in the contract. If both parties are not merchants, then the ______ must specifically agree to the proposals in order for them to be included in the contract.

proposals; seller

19

An agreement under the UCC may be modified w/out ____________ so long as the modification is in good faith.

consideration

20

Under the Statute of Frauds, contracts for the sale of goods for the price ____ or more must be in writing and signed by the party to be bound.

$500

21

An ______ warranty is an agreement made by the seller to the buyer that goods will conform to such agreement. It must be an expression of ____, not opinion.

express; fact

22

An implied ________ of merchantability exists in every sale of goods if the seller is a ________. This warranty represents an assurance that the goods will pass w/out objection in the trade and are fit for their ordinary use.

warranty; merchant

23

An implied warranty of _______ for a particular purpose arises when a seller has reason to know that a buyer is:
a. purchasing goods for a particular purpose AND
b. is relying on the seller's skill or judgement in purchasing goods.

fitness

24

Generally, the buyer's remedy when the seller fails to deliver goods or when goods have been properly rejected will be ___________ damages.

expectation

25

____________ damages are the difference b/w the contract price and the market price at the time the buyer learned of the breach, together with any incidental and consequential damages, but less any expenses saved as a result of the breach.

Expectation

26

The buyer can _____ by making a reasonable purchase of substitute goods.

cover

27

A buyer can _______ damages for accepted goods that are non-conforming, so long as he notifies the seller of the nonconformity within a reasonable time period.

recover

28

Damages for breach of ________ are the difference b/w the value of the goods accepted at the time and place of acceptance, and the value they would have been if they had conformed to the warranty.

warranty

29

When the buyer fails to make payment, the seller can _________ delivery of goods. If the buyer wrongfully rejects the goods, the seller may ______ damages.

withhold; recover