Exam Review Questions Flashcards
Grill deals in the repair & sale of clocks and sells a customers clock to another customer, who will win the case
The merchant, because any entrusting goods to a merchant that deals in goods of that kind gives the merchant power to transfer all rights of the entrusted to a buyer in the ordinary course of business
One merchant agrees to buy goods from another merchant who sends a signed purchase order but the other merchant does not respond. Now the merchant does not want to sell the goods. Under UCC sales Article the selling merchants position is
Incorrect, as it failed to object to the buyers PO. The contract was for the sales between merchants. If one such party, within a reasonable time after an oral understanding, sends a written confirmation that binds the sender, it will satisfy the statute of frauds. But the recipient may object the confirmation within 10 days
What does not apply to a written contract governed by the provisions of the UCC Sales Article?
The contract must involve the sale of goods for a price of $500 or more. Article 2 of the UCC applies to sales of goods. A oral contract for the sale of goods for $500 or more is unenforceable absent a writing.
Under the sales article of the UCC, the event that will release the buyer from all its obligations under a sales contract is
The refusal of the seller to give written assurance of performance when reasonably demanded by the buyer. (If the buyer has reasonable grounds to believe performance may not occur, the buyer may in writing demand adequate assurance of performance. The seller’s failure to provide adequate assurance within a reasonable time, not to exceed 30 days, is a repudiation of the contract that releases the buyer from its obligations.
Under the Secured Transaction Article of the UCC, regarding the filing of a financing statement
Once filed, a financing statement is effective for an indefinite period of time provided continuation statements are timely filed. A duly filed financing statement is effective for 5 years from the filing date.
Which warranties would result from the sale of socket sets
- Implied warrant of merchantability (Implied only when the seller is a merchant)
- Warranty of title
A merchant repossesses a computer sold to a person who has paid 60% of the equipment. The UCC secured transactions Article, which rights are available to the debtor
Force the sale of the computer.
The risk of loss passes from merchant seller to a buyer
upon the buyers receipt of goods
Under Article 2 of the UCC, which events will result in a risk of loss passing from a merchant seller to a buyer
Upon his or her receipt of the goods
