Chapter 13 Contracts for the Sale of Goods – Flashcards

Unlock all answers in this set

Unlock answers
question
...
answer
Sale
question
The law of sales governs contracts for the sale and lease of goods
answer
contracts
question
A sale is a contract in which ownership of goods is transferred from the seller to the buyer for consideration
answer
ownership
question
The consideration is also known as the price, or the money that is paid for goods
answer
consideration
question
Goods are all things that are moveable such as your clothing, books, pens, food, cars, and even gas that you put in your car
answer
moveable
question
Money, stocks, and bonds are not considered goods
answer
not
question
...
answer
The UCC
question
The Uniform Commercial Code is a collection of laws that governs various types of business transactions
answer
business
question
When you have a contract involving goods, the UCC will apply
answer
UCC
question
...
answer
The sales Contract
question
A sales contract may involve either a sale or a contract to sell
answer
sale
question
Every time you buy goods and take ownership of them, a sale is occurs
answer
sale
question
However, if you will take ownership at some future time, the agreement is a contract to sell, not a sell
answer
agreement
question
If the sale of goods dominates, the laws of UCC apply
answer
goods
question
if the performance of services dominates, the common law of contract applies
answer
services
question
With somes exceptions, the UCC applies to all sellers and buyers of goods
answer
goods
question
A merchant is a business or person who deals regularly in the sale of goods or who has a specialized knowledge of goods
answer
regularly
question
A non-merchant is a casual occassional seller
answer
seller
question
A sales contract must contain the same elements as other contracts, but the UCC has relaxed some of the strict rules of contract law.
answer
relaxed
question
...
answer
Good Faith
question
parties to a sales contract must treat each other fairly
answer
fairly
question
...
answer
Methods of Dealing and Usage of Trade
question
When parties have previously dealth with each other, those methods of dealing may be used to supplement or qualify the terms of their sales contract
answer
supplement
question
This rule is true with any usuage of trade, which is the method of dealing that is commonly used in the particular field
answer
commonly
question
...
answer
Formation of a Sales Contract
question
You may make a contract in any manner that shows that the parties have reached in an agreement
answer
agreement
question
...
answer
Acceptance of an Offer
question
In most situations, you may accept an offer by any means and in any reasonable manner
answer
accept
question
...
answer
Different or Additional Terms
question
An acceptance may have different or additional terms added without a complete rejection of the offer
answer
rejection
question
...
answer
Firm offer
question
A firm offer is a merchant's written promise to hold an offer open for the sale of goods
answer
hold
question
It does not require payment to be binding
answer
payment
question
...
answer
Open Price Terms
question
A sales contract may be made without a settled price
answer
price
question
Unless the parties agree to a price prior to delivery, a reasonable price can be settled at the time of delivery
answer
reasonable
question
...
answer
Output and Requirement Terms
question
Output and requirement contracts are allowed even if they are not definite.
answer
definite
question
An agreement to buy all of the manufacturer's goods is an output contract
answer
all
question
A requirement contract occurs when a seller agrees to supply the needs of a buyer.
answer
supply
question
...
answer
Modification
question
No consideration is necessary to change a contract for the sale of goods
answer
consideration
question
The modification may be oral, unless the original agreement is in writing and states that it must be modified in writing
answer
modification
question
...
answer
Leasing
question
you can apply the sale-of-goods rules to the leasing of goods, with a few modifications
answer
leasing
question
...
answer
Form of Sales Contracts
question
Many sales contracts are oral rather than written. As long as the price is less than $500, an oral contract for the sale of goods is enforceable
answer
oral
question
If the price is $500 or more, a sales contract must be in writing to be enforceable with the following exceptions:
answer
writing
question
written confirmation of an oral contract between two merchants is sent within a reasonable time, and no objectioon is made within 10 days *the contract involves specially manufactured goods that cannot be resold easily * The buyer receives and accepts the goods or pays for them *The parties admit in court that they entered into an oral contract
answer
Exceptions to the $500 rule
question
aution sales and bulk transfers
answer
Other Sales Governed by the UCC Rules
question
In an auction with reserve, the auctioneer doesn't have to sell the goods for the highest bid if it's lower than the reserve amount
answer
reserve
question
the auctioneer may withdraw the goods at any time before a sale is completed.
answer
before
question
In an auction without reserve, the auctioneer must sell the goods to the highest bidder
answer
highest
question
The goods cannot be withdrawn from bidding unless no bid is made
answer
withdrawn
question
An auction sale is with reserve unless it is expressly stated that it is without reserve
answer
expressly
question
Sometimes a business transfers all merchandise and supples at once, known as a bulk reserve
answer
once
question
The UCC rules require that the buyer of the bulk goods notify all of the seller's creditors at least ten days before the transfer will take place.
answer
notify
question
...
answer
13.2 Ownership and Risk of Loss in Sales of Goods
question
*right ownership to goods =people who own goods have title to them
answer
Title
question
formal evidence of ownership receive document *you receive this when you buy anything from a store
answer
bill of sale
question
*anyone who obtains property as a result of another's fraud, mistake hold a voidable title *may be voidable if injured party elects to do so<also when goods are bought from or sold to a minor or mentally ill impaired person *voidable titles can be transferred to someone else
answer
Voidable Title
question
*UCC<has special rule that allows merchants who have no title to goods to pass on good titles to consumers ex. pawn shop
answer
Buying from a Merchant
question
*sometimes necessary to determine who has title-seller or buyer ex. bankrupcy case-only goods which debtor has title can be taken by the court to satisfy creditor's claims
answer
Passage of Title and Risk of Loss
question
*sometimes necessary to know who will bear risk of loss-responsibility of loss of goods or damage *The reason for this is that goods can be stolen after sales contract has been entered and before transaction is complete. *Title of goods cannot be transferred in a sales contract until goods have been identified(meaning that the goods pre-exist and have been set aside)
answer
Pasage of Trade and Risk of Loss
question
*after goods are identified, title passes to buyer when seller does what is required under contract to deliver goods. *future goods-goods that are not both existing and selected. ex. crops that have not been grown *no title for future goods-sold later
answer
Passage of Title and Risk of loss
question
*one in which seller turns goods over to a carrier for delivery to a buyer
answer
Shipment contract
question
transportation company
answer
carrier
question
the seller is not responsible for seeing goods get to destination *Both title and risk of loss pass to buyer when goods are given to carrier * Shipment contract- F.O.B designates place of shipment "free on board"<buyer must pay freight charges-shipping to destination
answer
In Shipment contract
question
risk of loss and title passed from buyer when seller leaves goods at place of destination=uses F.O.B *if not shipped by carrier, depends on whether party is private< if so, the risk of loss goes to buyer
answer
Destination contract
question
bill of lading- warehouse receipt-
answer
Document
question
*remedies for buyer and seller prescribed by UCC
answer
Remedies for Breach of Sales Contract
question
-cancel contract -withold delivery of goods - stop delivery of goods when with carrier -resell goods - bring a claim against buyer -bring a claim against buyer for the price of goods accepted by buyer
answer
Seller's remedies
question
* usually breach of contract comes from buyer's end from failing to make delivery -cancel contract -revoke and return goods -give notice that goods have been accepted but not up to part
answer
Buyer's remedies
question
Questions: Are prices listed in U.S. dollars? How long will delivery take? Unexpected taxes, or duties added to price? Who can help you resolve any problems?
answer
World-Wide Shopping
question
-Don't give any personal info. -Have a secure web browser
answer
...
question
*method of signing electronic message
answer
E-Signature
question
E-sign is a federal law that permits use of electronic signature; identifies a particular person as the source of message, and indicates that person's approval of the info in message
answer
...
question
Under approved law, electronic signature can be used on a contract if both agree -can be used during internet transactions
answer
...
question
-apart of your right -keeps personal info safe -Children's Online Privacy Act
answer
Online Privacy
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New