REG 4 - R6 Sales, Copyrights & Patents, R7 Commercial Paper Flashcards Preview

CPA Exam > REG 4 - R6 Sales, Copyrights & Patents, R7 Commercial Paper > Flashcards

Flashcards in REG 4 - R6 Sales, Copyrights & Patents, R7 Commercial Paper Deck (20):
1

Warranty of Title

1. Guarantee from the seller that the goods are delivered free from all liens of which the buyer lacked knowledge when the contract was made.
2. Can be disclaimed by specific language or circumstance
3. Automatically arises in any sale of goods
4. Doesn't have to be a merchant
5. Doesn't have to be in writing

2

Action for Strict Product Liability

1. Must be sold in a defective condition
2. Seller was in business of selling goods
3. Defect caused plaintiff's injury
4. The product was expected to and did reach the consumer without substantial change

3

Risk of Loss under UCC is determined by

Shipping terms

4

F.O.B. Place of Shipment Contract

Risk of loss is passes when the goods are placed in the hands of a carrier at the seller's loading dock

5

Anticipatory Breach of Contract - Non-breacher's Rights

Right to demand assurance of performance OR cancel the contract

6

Amount of Liquidated Damages Seller's can keep

$500 of the buyer's deposit on the buyer's breach

7

Anticipatory Repudiation

Occurs when the buyer or seller indicates in advance of performance that he or she will not perform (an immediate breach of contract)

8

Risk of Loss in a Shipping Contract

Risk and loss pass to the buyer when the goods are placed in the hands of the carrier.

9

Risk of Loss in a Destination Contract

Risk and loss pass to the buyer when the goods reach their destination and are tendered.

10

Owner of a Copyright's Rights

May reproduce, prepare derivatives, distribute, and perform the work

11

Fair Use

The right of persons who do not own the copyright to use parts of the protected work without the owner's permission for purposes of teaching, criticism, news reporting, and the like.

12

Order Paper

is three-party paper where one person orders another to pay a third person - Example: Draft

13

Certificate of Deposit (CD)

a two-party paper where a bank acknowledges receipt of money and promises to pay

14

Check

A three party draft drawn on a bank and payable on demand.

15

Trade Acceptance

A three party order paper that contains an order to a third party rather than a promise to pay.

16

Promissory Note

A two-party paper where one party promises to pay.

17

To be a holder of an order paper

1. Have all necessary signatures (including one from transferor)
2. Possession of the instrument must have been transferred.

18

Draft

A three party paper that contains an order to pay instead of a promise to pay.

19

To Be Negotiable

Must be payable on demand or at a definite time

20

Bill of Lading

A document of title that provides evidence that a common carrier has received.