U.c.c. Test #1

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DOCUMENTARY SALE

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its a documentary sale if the contract calls for the buyer to pay for the goods when documents of title are tendered --completely independent of the time or place of the receipt of the goods.

Hint 1

14.1 #5 Gleim

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PRIVITY

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Contractual relationship

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PRIVITY OF CONTRACT

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That connection or relationship which exists between two or more contracting parties. The absence of privity as a defense in actions for damages in contract and tort actions is generally no longer viable with the enactment of warranty statutes, acceptance by states of the doctrine of strict liability, and court decisions which have extended the right to sue to third-party beneficiaries and even innocent bystanders.

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STRICT LIABILITY

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A concept applied by the courts in product liability cases in which a seller is liable for any and all defective or hazardous products which unduly threaten a consumer's personal safety. This concept applies to all members involved in the manufacture and sale of any facet of the product.

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REPLEVIN

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An action whereby the owner or person entitled to repossession of goods or chattels may recover those goods or chattels from one who has wrongfully distrained or taken such good or chattels or who wrongfully detains them.

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COURSE OF DEALING

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A sequence of previous acts and conduct between the parties to a particular transaction which is fairly to be regarded as establishing a common basis of understanding for interpreting their expression and other conduct. 3rd priority behind express terms and course of performance

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COURSE OF PERFORMANCE

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2nd priority behind express terms.

Conduct between the parties concerning performance of the particular contract.

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USAGE OF TRADE

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Any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question.

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IDENTIFIED GOODS

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Designated goods as a part of a particular contract.

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STATUTE OF FRAUDS

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A celebrated English statute, passed in 1677, which has been adopted, in a more or less modifed form, in nearly all of the United States. Its chief characteristic is the provision that no action shall be brought on certain contracts unless there be a note or memorandum thereof in writing, signed by the party to be charged or by his authorized agent.

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STATUTE OF LIMITATION

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A statute prescribing limitations to the right of action on certain described causes of action; that is, declaring that no suit shall be maintained on such causes of action unless brought within a specified period after the right accrued.

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WARRANTY

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A warranty is a statement or representation made by a seller of goods, contemporaneously with and as a part of a contract of sale, though collateral to express the object of the sale, having reference to the character, quality, or title of goods, and by which the seller promises or undertakes to ensure that certain facts are or shall be as he then represents them. The general statutory law governing warranties on sales of goods is provided in the UCC. The three main types of warranties are (1) express warranty; (2) implied warranty of fitness; (3) implied warranty of merchantability.

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WARRANTY OF TITLE

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Obligation to convey the right to ownership without any lien.

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C.I.F.

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Cost, insurance and freight; a shipping contract.

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C&F

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Cost and freight; a shipping contract.

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C.O.D.

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Collect on delivery; generally a shipping contract.

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F.O.B.

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Free on board at some location (for example, F.O.B shipping point; F.O.B destination); the invoice price includes delivery at seller's expense to that location. Title to goods usually passes from seller to buyer at the F.O.B location.

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BULK TRANSFERS

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Transfer not in the ordinary course of the transferor's business of a major part of his inventory.

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BAILMENT

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A delivery of personal property in trust for the execution of a special object in relation to such goods, beneficial either to the bailor or bailee or both, and upon a contract to either redeliver the goods to the bailor or otherwise dispose of the same in conformity with the purpose of the trust.