Ch 10 Vocab Crc Bus Law

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Sales Contract

Back 1

A contract for the sale of goods.

Front 2

Sale

Back 2

The passing of title to property from the seller to the buyer for a price.

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Tangible Property

Back 3

Property that has physical existence and can be distinguished by the senses of touch and sight.

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Intangible Property

Back 4

Property that cannot be seen or touched but exists only conceptually, such as corporate stocks. Such property is not governed by Article 2 of the UCC.

Front 5

Predominant-Factor Text

Back 5

A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.

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Merchant

Back 6

Under the UCC, a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

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Lease Agreement

Back 7

An agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.

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Lessor

Back 8

A person who transfers the right to the possession and use of goods to another in exchange for rental payments.

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Lessee

Back 9

A person who acquires the right to the possession and use of another’s goods in exchange for rental payments.

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Requirements Contract

Back 10

An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.

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Output Contract

Back 11

An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces

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Firm Offer

Back 12

An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or, if no definite period is stated, for a reasonable time (neither period to exceed three months).

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Seasonably

Back 13

Within a specified time period or, if no period is specified, within a reasonable time.

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Parol Evidence Rule

Back 14

A rule of contracts under which a court will not receive into evidence oral statements that contradict a written agreement.

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Course of Dealing

Back 15

Prior conduct between the parties to a contract that establishes a common basis for their understanding.

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Usage of Trade

Back 16

Any practice or method of dealing that is so regularly observed in a place, vocation, or trade that parties justifiably expect it will be observed in their transaction.

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Course of Performance

Back 17

The conduct that occurs under the terms of a particular agreement, which indicates what the parties to that agreement intended it to mean.

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Identification

Back 18

In a sale of goods, the express designation of the goods provided for in the contract.

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Fungible Goods

Back 19

Goods that are alike by physical nature, agreement, or trade usage.

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Shipment Contract

Back 20

A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for an losses or damage to the goods until they are delivered to the carrier.

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Destination Contract

Back 21

A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they are tendered at the destination specified in the contract.

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Document of Title

Back 22

A paper exchanged in the regular course of business that evidences the right to possession of goods (for example, a bill of lading or a warehouse receipt).

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Insolvent

Back 23

A condition in which a person cannot pay his or her debts as they become due or ceases to pay debts in the ordinary course of business.

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Good Faith Purchaser

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A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.

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Entrustment Rule

Back 25

The rule that entrusting goods to a merchant who deals in goods of that kind gives that merchant the power to transfer those goods and all rights to them to a buyer in the ordinary course of business.

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Bailee

Back 26

Under the UCC, a party who, by a bill of lading, warehouse receipt, or other document of title, acknowledges possession of goods and/or contracts to deliver them.

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Cure

Back 27

The rights of a party who tenders nonconforming performance to correct his or her performance within the contract period.

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Insurable Interest

Back 28

A property interest in goods being sold or leased that is sufficiently substantial to permit a party to insure against damage to the goods.