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Flashcards in REG 32 Deck (15):
1

EXPRESS WARRANTY - DOES IT MATTER THAT THEY SELECTED THE GOODS FOR YOU

NO the express warranty is what you get in the package, it describes what is covered "part of the basis of the bargain"

2

Warranty of title and against infringement is mae in _____________ contract for the sale of ________ unless it is excluded or modified by specific language.

WArranty of merchantability is implied only when the seller is a ____________

Warranty of implied fitness for a particular purposes arises only when _________________

1. Warranty of tile part of every contract for goods
2. Merchantability is implied only when seller is a merchant (not the buyer)
3. Implied fitness only when seller has reason to know the particular purpose and that the buyer is relying on their skill and judgement.

3

Does it matter that the buyer isn't a merchant in the imlied warr of merch

NO

4

If I say that a used piece of equipment was only used 10 hours a week by the previous owner is that a warranty? What kind

Yes it's an express warranty.

5

Can you disclaim a warranty of title?

NO.

6

for an implied warranty of fitness the _________ has to know the ________ and. ________

The seller has to know he's being relied on for his expertise and the good are for a particular purpose.

7

Remedies available to a seller when a buyer breaches a contract.

Didn't notice it was the buyer breaching in questions.

Right to resell goods
Right to stop carrier from delivering

8

What is the right of Replevin
You can invoke it only when _________ are specifically _______________ in the contract

Replevin means recover possession of goods wrongfully withheld
You can only do it if goods are specifically identified in the contract

9

If you prove fraud and rescind do you have to return consideration.

yes

10

HOw long is the UCC statute of limitations involving the sale of goods?

4 years - really - yes for the sale of goods, applies to oral or written contracts

from date of "accrual" whatever that means

11

fraud versus negligence
fraud what must you prove ____________ter and an _______________to d

if someone sues you for fraud what's your best defense

fraud requires intent, knowledge of the lie, recklesss disregard
if you didn't intend to deceive best defense

not

due diligence, due diligence has to do with negligence

12

Defense to Fraud versus Defense to Negligence

Fraud - no scienter, intent to deceive

Negligence - did the audit according to GAAS

13

Normally you have 3 years return filed or 2 after tax paid to file an amended,but in one case you have 7 years afterward.

If overpayment of tax resulted from securities that later became worthless in that year.

14

Underpayment of tax standard is ________% of total of ________ and ___________

25% of gross receipts (which is what everyone learns)
except it really is that and capital gains

15

Can u use LIFO for tax and FIFO for financial statement.

No LIFO can only be used for tax if it is used for book