Test 3

Question 1

Sales Contract Defenition

Answer 1

The transfer of ownership of goods from one party to another party for consideration

Question 2

Warranty Liabilities

Answer 2

Benefit of sales contracts, warranty of merchantability, warranty of fitness for a particular purpose

Question 3

Warranty of Merchantability

Answer 3

Product will do what it is supposed to do (applies to food)

Question 4

Warranty of Fitness for a Particular Purpose

Answer 4

when the sales person tell you the product can do something that it wasn’t manufactured for

Question 5

Are sales contract needed to be prooven?

Answer 5

No, service contracts are

Question 6

Risk of Loss

Answer 6

Depends on whether there is an independent carrier that is involved in the transaction, insurance needed

Question 7

Situations which there is no carrier

Answer 7

no delivery company involved, risk of loss depends on if the seller is a merchant or non merchant

Question 8

seller is merchant

Answer 8

one who regularly deals with the goods involved, risk of loss moves to buyer only when he physically receives goods.

Question 9

seller is not a merchant

Answer 9

if seller is not merchant, risk of loss is on buyer when the goods have been made available to him/her

Question 10

identification

Answer 10

you cant get insurance to cover those goods

Question 11

situations where there is a carrier

Answer 11

must be an independent carrier, shipment contract, destination contract

Question 12

Shipment Contract

Answer 12

Presumed, risk of seller goes to buyer once goods have been delivered,

Question 13

Due Delivery

Answer 13

goods are truly delivered, appropriately packaged, appropriate contract for delivery, buyer notified goods are on their way, buyer must receive documentation

Question 14

Goods are appropriately packaged

Answer 14

do what is customary and appropriate

Question 15

appropriate contract for delivery

Answer 15

recognize that the burden on the seller

Question 16

buyer needs to be notified of shipment

Answer 16

so that they can pick them up, buyer not liable if notification is not sent

Question 17

Destination Contract

Answer 17

risk of loss moves from seller to buyer once goods have been tendered to buyer at destination, in progress is still seller

Question 18

FOB place of destination

Answer 18

expense and risk of delivering to destination is on seller

Question 19

Ex Ship

Answer 19

requires that ship/truck is unloaded, risk on seller until unloaded

Question 20

Due Tender

Answer 20

buyer needs to know when goods will arrive, and must arrive within that reasonable time

Question 21

When does buyer have burden to sue

Answer 21

shipment

Question 22

when does seller have burden to sue

Answer 22

destination

Question 23

Remedies a buyer can perform

Answer 23

cover, capture, cure, accept nonconforming goods, breach of warranty, sue

Question 24

Cover

Answer 24

buyer buys replacement, which is covered by seller

Question 25

capture

Answer 25

you can capture goods that are readily available if in the future they might not be

Question 26

cure

Answer 26

has the right to fix the issue

Question 27

accept nonconforming goods

Answer 27

if accepting other goods not in contract, they don't rectify the situation in a timely manner, then you should revoke previous acceptance

Question 28

sue

Answer 28

last resort

Question 29

seller may fail to perform if

Answer 29

seller delivers non-conforming goods, seller is insolvent, repudiation

Question 30

seller delivers non conforming goods

Answer 30

goods don't conform to contract, breach of contract

Question 31

seller is insolvent

Answer 31

business is on shaky ground, bankrup

Question 32

repudiation

Answer 32

seller decides to not to do what is expected

Question 33

Buyer breaches sales contract

Answer 33

repudiation, buyer refuses to accept delivery, buyer becomes insolvent

Question 34

remedies for seller

Answer 34

find another buyer, unique goods, insolvency, reposession

Question 35

find another buyer

Answer 35

mitigate damages

Question 36

unique goods

Answer 36

buyer is liable for full value

Question 37

insolvency

Answer 37

seller can withhold delivery of goods

Question 38

reposession

Answer 38

no breach of peace