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20 Cards in this Set
- Front
- Back
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Requirements for a firm offer
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In writing
Signed by a merchant For the sale of goods Promising to keep offer open |
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Modification of existing contract: UCC rule
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Consideration is not necessary if modification is made in good faith
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Statute of frauds: UCC exceptions
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Specially manufactured goods
Goods received and accepted Written confirmation rule: for merchants, oral agreement exists, written confirmation sent, other party does not object in writing within 10 days |
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When does risk of loss pass if no stated intent or FOB?
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Seller is merchant: upon receipt
Seller is nonmerchant: upon tender of delivery |
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Condition for title of goods to pass to buyer
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Goods must be identified to the contract
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2 types of warranties under UCC
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Title and non-title
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Title warranties automatically made:
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Good title
No liens |
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How is an express non-title warranty made?
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Written or oral statements
OR Supplying buyer with a model or sample |
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3 types of implied warranties
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Title
Merchantability Fitness for particular purpose |
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Implied warranty of merchantability: goods are
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Of at least average quality
Fit for ordinary purpose Properly labeled |
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Implied warranty of fitness for particular purpose: requirements
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Seller knows particular purpose for which goods are to be used
AND Buyer is relying on seller's skill or judgment |
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How can an implied warranty be eliminated?
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One of the following:
Words "as is" or "with all faults" Clear and conspicuous language mentioning specific warranty to be eliminated Buyer has opportunity to inspect goods |
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Warranties: statute of limitations
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4 years unless parties agree otherwise
Other agreement must be between 1 and 4 years |
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UCC Sales: seller's rights
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Right to cure nonconforming delivery as long as time for performance has not passed
Right to stop shipment, request cash before delivery, or recover goods within 10 days if buyer insolvent Right to substitute different means of delivery |
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UCC Sales: seller's duties
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Duty to hold goods and give buyer reasonable notification to take delivery
Duty to provide written assurance of performance if demanded by buyer |
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UCC Sales: buyer's rights and duties
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Right to reject nonconforming goods
Right to cover Duty to pay if goods are accepted |
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UCC Sales: money damages for buyer and seller
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Buyer: cover formula = (market price at time buyer learned of breach) - contract price
Seller: can recover full price if buyer rejects goods and seller cannot resell |
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Product liability: 3 possible claims
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Negligence
Breach of warranty Strict liability |
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Product liability: for negligence, plaintiff must prove:
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Duty of reasonable care
Breach of duty Breach was proximate cause of injury Damages |
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Product liability: for strict liability, plaintiff must prove:
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Defective product
Dangerous Danger was proximate cause of injury Damages |
