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Flashcards in R6 - Sales Deck (10)
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1
Q

What 3 conditions must be present in a merchant’s firm offer?

A
MWC
Merchant
Written/signed
Certain time (90 day max)
2
Q

T/F: Shipment of nonconforming goods is both an acceptance and a breach of contract

A

True; if the merchant ships nonconforming goods, he has accepted and also breached

3
Q

Under UCC, how long is the statute of limitations?

A

4 years

4
Q

What are the 4 exceptions for a writing for goods valued over $500?

A
SWAP
Specially manufactured goods
Written confirmation of contract (if not voided in 10 days)
Admitted in court
Performed (actually produced)
5
Q

T/F: When goods are purchased from a merchant and the goods are subsequently destroyed before delivery, the buyer is responsible for the loss

A

False; the merchant is responsible until physical transfer has occurred; non-merchant is not responsible after tender of delivery (he says you can take it)

6
Q

What are the 5 conditions for strict products liability?

A
SCUND
Seller was a dealer
Caused injury
Unreasonably dangerous
No substantial change in condition
Defective product
7
Q

T/F: In a sale or return, the buyer has title and risk of loss unless and until the goods are returned to the seller

A

True

8
Q

What is a firm offer?

A

A firm offer is an offer that must remain open despite the absence of consideration (can only be made by merchants)

9
Q

T/F: When a buyer materially breaches a contract, the seller may cancel but not seek damages

A

False; the seller may both cancel and seek damages

10
Q

T/F: Under the UCC Sales Article, the implied warranty of merchantability may be disclaimed by a seller’s oral statement that mentions merchantability

A

True