Legal Terms Chapter 21 - The Uniform Commercial Code and Sales of Goods Contracts

Question 1

Bill of sale

Answer 1

A signed writing evidencing the transfer of personal property from one person to another.

Question 2

Conforming goods

Answer 2

Goods that are in accordance with the obligations under the contract.

Question 3

Consequential damages

Answer 3

Damages that flow from the seller’s breach and which the seller had reason to know about and which can’t be prevented by the buyer obtaining cover; a type of remedy.

Question 4

Contract to sell

Answer 4

A contract under which title to goods is to pass at a future time.

Question 5

Cover

Answer 5

The right of a buyer, after breach by a seller, to purchase similar goods from someone else.

Question 6

Cure

Answer 6

To correct.

Question 7

Destination contract

Answer 7

A contract that requires the seller to deliver goods to a specific destination.

Question 8

Donee

Answer 8

A person who receives a gift.

Question 9

Donor

Answer 9

A person who gives a gift; also a person who establishes a trust and also called grantor, trustor, or settlor.

Question 10

Express warranty

Answer 10

A statement of fact or promise that goods have certain qualities; a promise, description, or sample that is part of the sale.

Question 11

F.O.B the place of destination

Answer 11

Free on board (no delivery charges) to the place of destination; risk of loss is tendered to the buyer when the goods are tendered to their final destination and the seller assumes risk of loss until arrival.

Question 12

F.O.B the place of shipment

Answer 12

Free on board (no delivery charges) to the place of shipment; risk of loss is transferred to buyer when goods turned over to the carrier.

Question 13

Full warranty

Answer 13

An express warranty given for consumer goods under which the seller must repair or replace, without cost to the buyer, defective goods or else refund the purchase price.

Question 14

Fungible goods

Answer 14

Goods such as grain or oil, of which any unit is the same as any like unit; kept in bulk quantities and usually sold by weight or measure.

Question 15

Future goods

Answer 15

Goods that are not yet in existence or under anyone’s control.

Question 16

Goods

Answer 16

Movable, tangible personal property.

Question 17

Identified goods

Answer 17

Goods that have been selected as the subject matter of a contract.

Question 18

Implied warranty

Answer 18

A warranty that is imposed by law rather than given voluntarily.

Question 19

Incidental damages

Answer 19

Reasonable expenses incurred because of the seller’s breach, which can include legal fees; a type of remedy.

Question 20

Limited warranty

Answer 20

An express warranty given for consumer goods that is less than a full warranty.

Question 21

Nonconforming goods

Answer 21

Goods that are not the same as those called for under the contract.

Question 22

Output contract

Answer 22

A contract to sell “all the goods a company manufactures” or “all the crops a farmer grows.”

Question 23

Puffing

Answer 23

Statements made by sellers that are opinions to put their goods in the best light possible; not warranties.

Question 24

Remedies

Answer 24

Types of relief or justice that a court can award to a litigant who has established a violation of a legal right committed by the defendant; they may be legal or equitable in nature.

Question 25

Requirements contract

Answer 25

A contract to buy "all the fuel (or other goods) needed for one year." Essentially, all the goods that the buyer needs.

Question 26

Risk of loss

Answer 26

Responsibility in case of damage or destruction.

Question 27

Sale

Answer 27

The passing of title from the seller to the buyer for a price; title means ownership.

Question 28

Sale on approval

Answer 28

The sale of goods that are for the buyer's use rather than for resale, and that may be returned even though they conform to the contract, and where the buyer doesn't bear the risk of loss or damage until the buyer accepts the goods; a type of conditional sale.

Question 29

Sale or return

Answer 29

The sale of goods that are primarily for resale and that may be returned even though they conform to the contract, but where the buyer bears the risk or loss or damage to the goods; a type of conditional sale.

Question 30

Shipment contract

Answer 30

A contract under which the seller turns the goods over to a carrier for delivery to a buyer.

Question 31

Uniform Commercial Code

Answer 31

A uniform code adopted in every state, that governs various commercial transactions; when adopted by a jurisdiction, the legal rules replace that jurisdiction's common law doctrines.

Question 32

Warranty of fitness for a particular purpose

Answer 32

An implied warranty, given when a buyer relies on any seller's skill and judgment in selecting goods, that the goods will be fit for a particular purpose; the seller is aware of this reliance.

Question 33

Warranty of merchantability

Answer 33

An implied warranty, given by merchants in all sales unless excluded, that goods are fit for the ordinary purpose for which such goods are used.

Question 34

Warranty of title

Answer 34

A guarantee that title is good, that the transfer is rightful, and that no unknown liens on the goods exist; a type of implied warranty.