Flashcards in REG 4 - R6 Sales, Copyrights & Patents, R7 Commercial Paper Deck (20):
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
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
Risk of Loss under UCC is determined by
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
Anticipatory Breach of Contract - Non-breacher's Rights
Right to demand assurance of performance OR cancel the contract
Amount of Liquidated Damages Seller's can keep
$500 of the buyer's deposit on the buyer's breach
Occurs when the buyer or seller indicates in advance of performance that he or she will not perform (an immediate breach of contract)
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.
Risk of Loss in a Destination Contract
Risk and loss pass to the buyer when the goods reach their destination and are tendered.
Owner of a Copyright's Rights
May reproduce, prepare derivatives, distribute, and perform the work
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.
is three-party paper where one person orders another to pay a third person - Example: Draft
Certificate of Deposit (CD)
a two-party paper where a bank acknowledges receipt of money and promises to pay
A three party draft drawn on a bank and payable on demand.
A three party order paper that contains an order to a third party rather than a promise to pay.
A two-party paper where one party promises to pay.
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.
A three party paper that contains an order to pay instead of a promise to pay.
To Be Negotiable
Must be payable on demand or at a definite time