Exam 3

Question 1

Section of the Uniform Commercial code that governs contracts for the sale of goods

Answer 1

Article 2

Question 2

anything movable at the time it is identified as the subject of the transcation

Answer 2

goods

Question 3

goods that physically exist and are owned by the seller at the time of the transaction

Answer 3

existing goods

Question 4

goods that exist physically but are not owned by the seller and goods that have not been produced yet

Answer 4

future goods

Question 5

relationship that exists when personal property is delivered into the possession of another under an agreement, express or implied, that the identical property will be returned or will be delivered in accordance with the agreement

Answer 5

bailment

Question 6

person who accepts possession of a property

Answer 6

bailee

Question 7

title to the owners personal property voluntarily transferred by a party not receiving anything in exchange

Answer 7

gift

Question 8

entity engaged in the business of storing the goods of others for compensation

Answer 8

warehouse

Question 9

entities that serve the public generally without discrimination

Answer 9

public warehouses

Question 10

right of a creditor to hold a particular property or assert a lien on the particular property of the debtor because of the creditors having done work on or having some other association with the property, as distinguished from having a lien generally against the assets of the debtor merely because the debtor is indebted to the lien holder

Answer 10

specific lein

Question 11

receipt issued by the warehouse for stored goods, regulated by the UCC, which clothes the receipt with some degree of negotiability

Answer 11

warehouse receipt

Question 12

person or bailor who gives property for storage

Answer 12

depositor

Question 13

warehouse that prepares a receipt of goods received for storage

Answer 13

issuer

Question 14

document treated as evidence that a person is entitled to receive, hold, and dispose of the document and the goods it covers

Answer 14

document of title

Question 15

receipt that states the covered goods received will be delivered to a specific person

Answer 15

nonnegotiable warehouse receipt

Question 16

receipt that states the covered goods will be delivered to the bearer or to the order of

Answer 16

negotiable warehouse receipt

Question 17

stored goods under the exclusive control of a warehouse but kept on the owners premises rather than in a warehouse

Answer 17

field warehousing

Question 18

individual or organization undertaking the transportation of goods

Answer 18

carrier

Question 19

person who delivers goods to the carrier for shipment, party with title who turns goods over to another for sale

Answer 19

consignor

Question 20

person to whom goods are shipped, dealer who sells goods for others

Answer 20

consignee

Question 21

carrier that holds out its facilities to serve the general public for compensation without discrimination

Answer 21

common carrier

Question 22

carrier that transports on the basis of individual contracts that it makes with each shipper

Answer 22

contract carrier

Question 23

carrier owned by the shipper, such as a companys own fleet of trucks

Answer 23

private carrier

Question 24

document issued by a carrier reciting the receipt of goods and the terms of the contract of transportation, regulated by the federal bills of lading act or the ucc

Answer 24

bill of lading

Question 25

document of title issued to a shipper whose goods are being sent via air

Answer 25

airbill

Question 26

document of title that by its terms calls for goods to be delivered to the bearer or to the order of a named person

Answer 26

negotiable bill of lading

Question 27

document of title that consigns transported goods to a named person

Answer 27

straight or nonnegotiable bill of lading

Question 28

bailee to whom the goods are consigned for sale

Answer 28

factor

Question 29

entrusting a person with possession of property for the purpose of sale

Answer 29

selling on consignment

Question 30

bailee to whom goods are consigned for sale

Answer 30

commission merchant

Question 31

consignees compensation

Answer 31

commission or factorage

Question 32

act of taking personal property by a person not entitled to it and keeping it from its true owner or prior possessor without consent

Answer 32

conversion

Question 33

one regularly engaged in the business of offering living accomodations to all transient persons

Answer 33

hotelkeeper

Question 34

transient who contracts for a room or site at a hotel

Answer 34

guest

Question 35

seller who deals in specific goods classified by the UCC

Answer 35

merchant

Question 36

expression of an offerors willingness to enter into a contractual agreement

Answer 36

offer

Question 37

offer stated to be held open for a specified time, under the UCC with respect to merchants

Answer 37

firm offer

Question 38

unqualified assent to the act or proposal of another, as the acceptance of an offer to make a contract

Answer 38

acceptance

Question 39

timing for acceptance tied to proper acceptance

Answer 39

mailbox rule

Question 40

common law contract rule on acceptance that requires language to be absolutely the same as the offer, unequivocal and unconditional

Answer 40

mirror image rule

Question 41

merchants exchanges of invoices and purchase orders with differing boilerplate terms

Answer 41

battle of the forms

Question 42

unreasonable, not guided or restrained by conscience and often referring to a contract grossly unfair to one party because of the superior bargaining powers of the other party

Answer 42

unconsionable

Question 43

method of determining the purchase price or contract price equal to the sellers or contractors costs plus a stated percentage as the profit

Answer 43

cost plus

Question 44

contract of the producer to sell its entire production or output to a buyer

Answer 44

output contract

Question 45

contract in whcih the buyer buys its needs from the seller

Answer 45

requirements contract

Question 46

rule that prohibits the intro in evidence or oral or written statements made prior to or comtemporaneously with the execution of a complete written contract, deed, or instrument, in the absence of fraud, accident or mistake

Answer 46

parol evidence rule

Question 47

pattern of performance between two parties to a contract

Answer 47

course of dealing

Question 48

language and customs of an industry

Answer 48

usage of trade

Question 49

statute that, to prevent fraud through the use of perjured testimony, requires that certain kinds of contracts be in writing to be binding or enforceable

Answer 49

statute of frauds

Question 50

writing signed by the seller reciting that the personal property therein described has been sold to the buyer

Answer 50

bill of sale

Question 51

uniform international contract code contracts for international sale for goods

Answer 51

contracts for the international sale of goods CISG

Question 52

agreement between the owner of property and a tenant by which the former agrees to give possession of the property to the latter for payment of rent

Answer 52

lease

Question 53

lease of goods by a natural person for personal, family, or household use

Answer 53

consumer lease

Question 54

lease that does not satisfy the definition of a comsumer lease, also known as commercial lease

Answer 54

nonconsumer lease

Question 55

three party lease agreement in which there is a lessor, a lessee and a financier

Answer 55

finance lease

Question 56

point in the transaction when the buyer acquires an interest in the goods subject to the contract

Answer 56

identification

Question 57

goods that physically exist and are owned by the seller at the time of a transaction

Answer 57

existing goods

Question 58

term applied to particular goods selected by either the buyer or the seller as the goods called for the sale contract

Answer 58

identified

Question 59

goods that exist physically but are not owned by the seller as well as goods that have not yet been produced

Answer 59

future goods

Question 60

homogenous goods of which any unit is the equivalent of any other unit

Answer 60

fungible goods

Question 61

document treated as evidence that a person is entitled to receive, hold, and dispose of the document and the goods it covers

Answer 61

document of title

Question 62

document issued by a carrier acknowledging the receipt of goods and the terms of the contract of transportation

Answer 62

bill of lading

Question 63

receipt issued by the warehouser for stored goods, regulated by the UCC, which clothes the receipt with some degree of negotiability

Answer 63

warehouse receipt

Question 64

principle by which a person is barred from purchasing a certain course of action or of disputing the truth of certain matters

Answer 64

estoppel

Question 65

title of goods that carries with it the contingency of an underlying problem

Answer 65

voidable title

Question 66

contract that requires the seller to arrange for shipment only

Answer 66

FOB place of shipment

Question 67

shipping contract that requires the seller to deliver goods to the buyer

Answer 67

FOB place of destination

Question 68

free alongside the named vessel

Answer 68

FAS

Question 69

cost and freight

Answer 69

CF

Question 70

cost, insurance, and freight

Answer 70

CIF

Question 71

cash on delivery

Answer 71

COD

Question 72

goods have arrived, are available for pickup and the buyer is notified

Answer 72

tender

Question 73

in contract performance, the cost of damage or injury to the goods contracted for

Answer 73

risk of loss

Question 74

term indicating that no sale takes place until the buyer approves or accepts the goods

Answer 74

sale on approval

Question 75

sale in which the title to the property passes to the buyer at the time of the transaction but the buyer is given the option of returning the property and restoring the title to the seller

Answer 75

sale or return

Question 76

bailment made for the purpose of sale by the bailee

Answer 76

consignment

Question 77

person who delivers goods to the carrier for shipment, party with title who turns goods over to another for sale

Answer 77

consignor

Question 78

person to whom goods are shipped, dealer who sells good for others

Answer 78

consignee

Question 79

bailee to whom goods are consigned for sale

Answer 79

factor

Question 80

promise, either express or implied, about the nature, quality, or performance of the goods

Answer 80

warranty

Question 81

product liability theory that imposes absolute liability upon the manufacturer, seller, or distributor of goods for harm caused bu defective goods

Answer 81

strict tort liability

Question 82

relationship between a promisor and the promisee

Answer 82

privity of contract

Question 83

succession or chain of relationship to the same thing or right, such as privity of contract, privity of estate, privity of possession

Answer 83

privity

Question 84

statement by the defendant relating to the goods, which statement is part of the basis of the bargain

Answer 84

express warranty

Question 85

obligation of a seller to fix or replace a defective product within a reasonable time without cost to the buyer

Answer 85

full warranty

Question 86

any warranty that does not provide the compete protection of the a full warranty

Answer 86

limited warranty

Question 87

federal law that sets standards for the types of paints used in toys, a response to the lead paint found in toys made in china, requires tracking from international production increases penalties

Answer 87

consumer product safety improvement act

Question 88

warranty that was not made but is implied by law

Answer 88

implied warranty

Question 89

implied warranty that title to the goods is good and transfer is proper

Answer 89

warranty of title

Question 90

warranty that there are no liens or other encumbrances to goods except those noted by the seller

Answer 90

warranty against emcumbrances

Question 91

group of promises made by the seller, the most important of which is that the goods are fit for the ordinary purposes for which they are sold

Answer 91

implied warranty of the merchantability

Question 92

failure to exercise due care under the circumstances that results in harm proximately caused to one owed a duty to exercise due care

Answer 92

negligence

Question 93

absence of knowledge of any defects or problems

Answer 93

good faith

Question 94

result of a buyer or seller refusing to perform the contract as stated

Answer 94

repudiation

Question 95

repudiation made in advance of the time for performance of the contract obligations

Answer 95

anticipatory repudiation

Question 96

standard of the trade for shipment or packaging of a good

Answer 96

commercial unit

Question 97

second chance for a seller to make a proper tender of conforming goods

Answer 97

right to cure

Question 98

timely

Answer 98

seasonable

Question 99

unqualified assent to the act or purposal of another, such as the acceptance of a draft(bill of exchange), of an offer to make a contract, of goods delivered by the seller, or a gift or deed

Answer 99

acceptance

Question 100

material defect in a good

Answer 100

substantial impairment

Question 101

situation that occurs when costs of performance rise suddenly and performance of a contract will result in a substantial loss

Answer 101

commercial impracticability

Question 102

statute that restricts the period of time within which an action may be brought

Answer 102

statute of limitations

Question 103

failure to act or perform in the manner called for in a contract

Answer 103

breach

Question 104

incurred by the nonbreaching party as part of the process of trying to cover, or sell, including storage fees, commission and the like

Answer 104

incidential damages

Question 105

credit sale of goods or a secured loan that provides special protection for the creditor

Answer 105

secured transaction

Question 106

damages the buyer expereinces as a result of the sellers breach with respect to the third party

Answer 106

consequential damages

Question 107

provision stipulating the amount of damages to be paid in the event of default or breach of contract

Answer 107

liquidated damages