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Flashcards in R6-pt2Sales Law Deck (28)
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What sales are covered under the Uniform Commercial Code (UCC)?

Only sales of goods are covered under the UCC.


What elements are needed for a sale covered under the Uniform Commercial Code (UCC)?

Offer - You offer to sell something at a price

Acceptance - the other party accepts

Consideration - Something of value has been exchanged for the goods

Note: The UCC only covers sales of goods.


What are the elements of a Firm Offer?

- Only merchants can make firm offers

- Must be in writing and signed

- 3 months max

- Assurances it will be kept open for certain amount of time


Under what situations are sales of goods covered by the Statute of Frauds?

- If value of goods sold is > $500

- Sales contract must be in writing


In Carrier Cases, when does Title and Risk of Loss transfer on a sale of goods?

'Free On Board': FOB

- FOB shipping point: Title transfers at point of shipment (i.e. when loaded on truck)

- FOB destination: Title and risk transfers once item is delivered


What is a Warranty of Title?

The seller has the right to sell the good and no one else can stake claim to that good


What is Warranty of Merchantability?

- This good will do its intended purpose

- Only made by Merchants

- Can be disclaimed by 'As is' Sale or stating no Merchantability


What is Warranty of Fitness?

- Made by Any Seller, Buyer is relying on Seller to pick goods

- Made when Seller selects goods Suitable for Buyer

- Can be disclaimed by 'As is' Sale


What is Strict Liability with respect to buyer protection?

- Manufacturers of goods cannot disclaim that their products will be safe

- Can be liable if negligent


What are Non-conforming goods with respect to buyer protection?

- Buyer can reject some or all of the shipment if the seller didn't perform as agreed and ship what was expected

- Must give notice

- Must give seller a chance to remedy the situation


What is the Statute of Limitations with respect to buyer protection?

- Buyer must sue to recover damages within 4 years.

- From the time the contract was Breached


Under UCC, Offers can be changed in what way & still be accepted

- If its a Material Change, then its a Counteroffer

- If Minor Changes, then a Valid Acceptance

- Mirror Rule does Not apply


What are the exceptions for Sale of Goods under the Statute of Frauds? (Not have to be Written)

- Specially manufactured Goods: Oral contracts binding

- A Written Confirmation of a contract, if doesn't object Within 10 Days

- Admitted in Court

- Contracts have been Performed



Is there a Defense when there is Failure of Agreed-upon Method of Transportation?

- No Defense


What are the Steps for Risk of Loss transfer to the Buyer?

- Goods must be Identified: 'Marked, segregated'

- Parties Agrees: Contract Terms &

- Non-carrier: buyer picks up.

- Carrier: Ship goods


For Non-carrier Cases, When does Risk of Loss pass when its a Merchant & Non-merchant?

- Merchant: Risk passes on Tender of Delivery

- Non-merchant: Risk passes on actual Delivery


What is an Express Warranty?

- Goods will conform to the statement of Fact, to the description, or sample or model

- Must be part of the Basis of the Bargain

- Very Difficult to disclaim


What is an Implied Warranty of Title?

- In Every Sales contract

- Good Title, No Understated Encumbrances & No Infringements

- May be Disclaimed Specifically or by Circumstance


Warranty Protection is extended to?

- Anyone injured can sue

- Breach of warranty or Tort

- Not Limited to Privity


To Sue Negligent Sellers, Must Prove:

- Duty of care

- Breached duty by Failing to Use Due Care

- Damages

- Causation


To Sue for Tort for Strict Products Liability, must Prove:

- Product was Defective

- Caused injury

- Unreasonable Dangerous

- Business of selling type of product

- Without Substantial Change in condition

- Privity Not Req,


What are the Seller's Remedies when a Buyer Breaches?

- Seller's Right to Cancel & Sue for Damages

- Seller's Right to Withhold Delivery & Stop Goods in Transit

-Reclaim Delivered Goods for Buyer's Insolvency


What are the Exceptions that allow the Transfer of Title to stolen goods?

- Entrusting: Merchant sold during ordinary course of business

- Voidable Title: Accepting a bad check


The Fair Use Doctrine allows use of Copyrighted work Without the Owner's Permission for the Purposes of?

- Criticism & Comments

- News Reporting

- Teaching


What are the Remedies for Copyrights & Patents?

- Copyrights: Civil & Criminal

- Patents: Only Civil


What are the Limits for Liquidated Damages?

- Can Collect up to a 'Reasonable Amount'



What are Liquidated Damages?

- Restricts recovery to a ‘Reasonable' amount

- The seller may retain a deposit of up to $500 when a buyer defrauds 

--Even if there is no liquated provision in the contract


What is Anticipatory Repudiation?

- Occurs when either the buyer or seller indicates in advance of performance that they will NOT Perform