Sales Law Flashcards Preview

REG > Sales Law > Flashcards

Flashcards in Sales Law Deck (11)
Loading flashcards...
1
Q
What sales are covered under the Uniform Commercial Code (UCC)?
A
Only sales of goods are covered under the UCC.
2
Q
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
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
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
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
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
What is Warranty of Merchantability?
A
This good will do its intended purpose

Can be disclaimed
8
Q
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
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
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
What is the statute of limitations with respect to buyer protection?
A
Buyer must sue to recover damages within 4 years.