Buisness Law Exam #3

Front 1

bailee

Back 1

A holder of goods who is not a seller or a buyer.

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consignment

Back 2

An arrangement where a seller (the consignor) delivers goods to a buyer (the consignee) for sale.

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destination contract

Back 3

A contract that requires the seller to delver the goods either to the buyer’s place of business or to another destination specified in the sales contract.

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document of title

Back 4

An actual piece of paper, such as a warehouse receipt or bill of lading, that is required in some transactions of pick up and delivery.

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future goods

Back 5

Goods not yet in existence (ungrown crops, unborn stock animals).

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good faith purchaser for value

Back 6

A person to whom good title can be transferred from a person with voidable title. The real owner cannot reclaim goods from a good faith purchaser for value.

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good faith subsequent lessee

Back 7

A person to whom a lease interest can be transferred from a person with voidable title. The real owner cannot claim the goods from the subsequent lease until the lease expires.

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identification of goods

Back 8

Distinguishing the goods named in the contract from the seller’s or lessor’s other goods.

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sale on approval

Back 9

A type of sale in which there is no actual sale unless and until the buyer accepts the goods.

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sale or return

Back 10

A contract that says that the seller delivers goods to a buyer with the understanding that the buyer may return them if they are not used or resold within a stated or reasonable period of time.

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shipment contract

Back 11

A contract that requires the seller to ship the goods to the buyer via a common carrier.

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title

Back 12

Legal, tangible evidence of ownership of goods.

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void title

Back 13

A thief acquires no title to the goods he or she steals.

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voidable title

Back 14

title that a purchaser has if the goods were obtained by (1) fraud, (2) a check that is later dishonored, or (3) impersonating another person.

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compensatory damages

Back 15

Damages that are generally equal to the difference between the value of the goods as warranted and the actual value of the goods accepted at the time and place of acceptance.

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consequential damages

Back 16

Foreseeable damages that arise from circumstances outside the contract. In order to be liable for these damages, the breaching party must know or have reason to know that the breach will cause special damages to the other party.

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conspicuous

Back 17

A requirement that warranty disclaimers be noticeable to the average person.

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consumer expectation test

Back 18

A test to determine merchantability based on what the average consumer would expect to find in food products.

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express warranty

Back 19

A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.

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foreign substance test

Back 20

A test to determine merchantability based on foreign objects that are found in food.

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implied warranty of fitness for human consumption

Back 21

A warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast food outlets, and vending machines.

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implied warranty of merchantability

Back 22

Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased; and other assurances.

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privity of contract

Back 23

The state of two specified parties being in a contract.

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UCC statute of limitations

Back 24

A rule that provides that an action for breach of any written or oral sales or lease contract must commence within four years after the cause of action accrues. The parties may agree to reduce the limitations period to one year.

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unconscionable disclaimer

Back 25

A disclaimer that is so oppressive or manifestly unfair that it will not be enforced by the court.

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warranties of quality

Back 26

Seller’s or lessor’s assurance to buyer or lessee that the goods meet certain standards of quality. Warranties may be expressed or implied.

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warranty against infringements

Back 27

A seller or lessor who is a merchant who regularly deals in goods of the kind sold or leased automatically warrants that the goods are delivered free of any third-party patent, trademark, or copyright claim.

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warranty against interference

Back 28

The lessor warrants that no person holds a claim or interest in the goods that arose from an act or omission of the lessor that will interfere with the lessee’s enjoyment of its leasehold interest.

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warranty disclaimer

Back 29

Statements that negate express and implied warranties.

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warranty of fitness for a particular purpose

Back 30

A warranty that arises where a seller or lessor warrants that the goods will meet the buyer’s or lessee’s expressed needs.

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warranty of good title

Back 31

Sellers warrant that they have valid title to the goods they are selling and that the transfer of title is rightful.

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warranty of no security interests

Back 32

Sellers of goods warrant that the goods they sell are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer.

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warranty

Back 33

A buyer’s or lessee’s assurance that the goods meet certain standards.