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Flashcards in Sales Law Deck (11)
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1
Q

REG

What sales are covered under the Uniform Commercial Code (UCC)?

A

Only sales of goods are covered under the UCC.

2
Q

REG

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

A

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.

3
Q

REG

What are the elements of a Firm Offer?

A

You offer to sell something at a price and keep that offer open for a set period of time

3 months max

Only merchants can make firm offers

Must be in writing and signed

4
Q

REG

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

A

If value of goods sold is > $500; sales contract must be in writing

Exceptions: Merchants can enter into oral contracts for > $500 items.

Oral contracts are binding for special or uniquely-made items (i.e. custom cabinets or custom furniture that could not be sold if buyer reneged)

5
Q

REG

When does title and risk of loss transfer on a sale of goods?

A

If terms are:

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

6
Q

REG

What is a Warranty of Title?

A

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

7
Q

REG

What is Warranty of Merchantability?

A

This good will do its intended purpose

Can be disclaimed

8
Q

REG

What is Warranty of Fitness?

A

This good is the right choice for you based on the seller’s expert opinion

Can be disclaimed

9
Q

REG

What is strict liability with respect to buyer protection?

A

Manufacturers of goods cannot disclaim that their products will be safe

Can be liable if negligent

10
Q

REG

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

A

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

11
Q

REG

What is the statute of limitations with respect to buyer protection?

A

Buyer must sue to recover damages within 4 years.