VA Sales Essays Rule Statements

Question 1

An individual entrusting possession of goods to a merchant who deal in good of that kind

Answer 1

gives the merchant the power to transfer all rights of the entruster to a buyer in the ordinary course of business

Question 2

a thief of goods can never

Answer 2

pass good title

Question 3

Virginia law allows revocation of acceptance as a remedy for the buyer if

Answer 3

the buyer accepted the goods on a reasonable belief that the defect would be cured and it has not been, or if the buyer accepted them because of the difficulty of discovering the defect or because of the seller’s assurance that they conformed to the contract, must be in a reasonable time after acceptance and must not have substantially changed

Question 4

exception to SOF for goods $500 or more

Answer 4

1) good are to be specially manufactured for the buyer
2) not suitable for sale to others in the ordinary course of business, and
3) the seller has made a substantial beginning of their manufacture or commitments for their procurement

Question 5

when reasonable grounds for insecurity arise with respect to the performance of either party in a contract, a party may

Answer 5

demand adequate assurance of performance in writing, may suspend performance until he receives such assurance, if commercially reasonable, if don’t get one in 30 days contract is repudiated

Question 6

a contract does not fail for indefiniteness if

Answer 6

the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy

Question 7

seller can stop a shipment of goods in transit when

Answer 7

a buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before a delivery

Question 8

seller can sue for contract price of goods plus incidental damages if

Answer 8

he is unable to resell them at a reasonable price

Question 9

when a contract does not specify a method of acceptance, acceptance may be made

Answer 9

by any reasonable means

Question 10

a revocation is effective when

Answer 10

it is received

Question 11

if an offeror can reasonably expect that an offeree will rely to his detriment on an offer,

Answer 11

the offer is irrevocable for a reasonable length of time

Question 12

fraudulent misrepresentation

Answer 12

asserting information he knows is untrue

Question 13

if a party induces another to enter into a contract by using fraudulent misrepresentation

Answer 13

the contract is voidable by the innocent party if she justifiably relied on the misrepresentation

Question 14

implied warranty of merchantability

Answer 14

implied in every contract for sale of goods by a merchant, fit for the ordinary purpose that such goods are used for

Question 15

merchant

Answer 15

someone who regularly deals in goods of the kind sold or holds himself out as having special knowledge of the goods sold

Question 16

express warranty

Answer 16

affirmation of fact or promise mad eby the seller to the buyer, if it is part of basis of bargain

Question 17

under UCC, a buyer may reject a delivery if

Answer 17

it fails to conform to the contract in any way

Question 18

a buyer may revoke her acceptance of goods if

Answer 18

they have a defect that substantially limits their value and she acepted them because of the difficulty of discovering defects

Question 19

under UCC, a buyer who reject noncomforming goods can recover

Answer 19

either the difference between the contract price and the market price or the difference between the contract price and the cost of replaxement goods

Question 20

keep goods but prove a breach of warraanty

Answer 20

recover warranty damages, difference between the value of the goods as delivered and the value they would have had if they had been according to the contract, plus incidental and consequential, must notify seller of defect

Question 21

if a buyer sends a written purchase order that has the buyer’s name printed on it

Answer 21

it may be treated as signed if the buyer intended to be bound by the order

Question 22

between merchants, any nonmaterial additional or different terms in the acceptance or confirmatory memoranda to which the offeror does not object within a reasonable time after he receives notice

Answer 22

will be included

Question 23

a clause negating standard warranties constitutes a term that

Answer 23

materially alters a contract, so it’s an additional term proporsal and doesn’t become part of it unless separately eaccepted

Question 24

when the buyer refuses to accept goods, the seller is entitled to recover

Answer 24

the difference between the contract price and the market price as of the time of delivery, plus incidental damages

Question 25

anticipatory repudiation

Answer 25

a party to a contract indicates he won’t perform through his words, actions, or circumstances

Question 26

if anticipatory repudiation, the other party may

Answer 26

await performance by the other party for a commercially reasonable time, resort to any remedy for breach, or suspend his own perofrmance

Question 27

incidental damages for a buyer typically

Answer 27

relate to costs of handling rejected goods

Question 28

what makes a contract

Answer 28

offer, acceptance, consideration

Question 29

offer

Answer 29

communciation that creates a reasonbbale expectation in the offeree that hte offeror is willing to enter into a contract (specific price, quantity, delivery)

Question 30

acceptance

Answer 30

manifestation of asset to the terms of the offer

Question 31

when an acceptance includes terms in addition to those in the offer

Answer 31

the terms of the offer control unless both parties are merchants

Question 32

when the acceptance includes different terms from teh offer

Answer 32

knock each other out and use article 2 rules to fill in missing terms, if no provision, look to course of performance

Question 33

in an installment contraxt, if a waiver is not supported by consideration and there is no detrimental reliance on the waiver,

Answer 33

the beneficiary of the waived condition can insist on strict compliance with the terms of the contract for future installemtns by giving notice that he is revoking the wiaver

Question 34

warranty of fitness for particular purpose

Answer 34

seller has reason to know of particular purpose and the buyer is relying on the seller or lessor’s skill or judgment to furnish suitable goods

Question 35

as is

Answer 35

in writing and conspicuous, all implied warranties are excluded

Question 36

to show breach of implied waranty of merchantagbility

Answer 36

1) existence of a warranty
2) warranty was broken
3) breach was a proximate cause of the loss

Question 37

methods for disclaiming implied warranties

Answer 37

refusal to inspect the goods before entering a contract