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70 Cards in this Set

  • Front
  • Back

Uniform Commercial Code (UCC)

is a model law that applies to commercial transactions such as the sale of goods, leases, contracts, and negotiable instruments.
UCC
abbreviates Uniform Commercial Code.
Goods
include tangible, movable property other than money.
Merchants
are professionals who specialize in buying or selling one or more types of goods.
Statute of frauds
requires certain contracts to be evidenced by writing.
Risk
is the chance of financial loss.
Collect on delivery (COD)
is the delivery term requiring payment on delivery.
COD
abbreviates collect on delivery.
Implied warranty of fitness for a purpose
promises goods are fit for their particular intended use if the buyer relied on the seller’s help in their selection.
Implied warranty of title
promises the title conveyed is good, its transfer is rightful, and the goods are free from any undeclared lien.
Implied warranty of merchantability
promises that the goods are up to trade standards, of at least average quality for their kind if they’re fungible, fit for their ordinary purposes, of reasonably consistent quality, adequately packaged, and as described on their label.
Express warranty
is a spoken or written statement that forms, in part, the basis of the bargain.
FOB (free on board) place of shipment
is the delivery term that requires the seller to deliver the goods to the shipper at the seller’s risk and expense.
FOB (free on board) place of destination
is the delivery term that requires the seller to deliver the goods to the final destination at the seller’s risk and expense.
FOB
abbreviates free on board.
FAS (free alongside) vessel
is the delivery term that requires the seller to deliver the goods to the shipping vessel at the seller’s own risk and expense.
FAS
abbreviates free alongside.
FOB vessel
is the delivery term that requires the seller to deliver and load the goods on the shipping vessel at the seller’s own risk and expense.
CIF (cost
insurancefreight)is the delivery term indicating that the contract price includes the cost of goods, insurance, and freight.
CIF
abbreviates costinsurancefreight.
CAF (cost and freight)
is the delivery term indicating the contract price includes the cost of goods and freight.
CAF
abbreviates cost and freight.
Negotiable instrument
is a signed, written instrument that contains an unconditional promise or order to pay a sum certain in money, does not contain any other promise or obligation, is payable on demand or at a definite time, and is payable to order or to bearer.
Draft
is an unconditional order by the first person (drawer) to the second person (drawee) to pay a third person (payee).
Check
is a draft on a bank which is payable on demand.
Certificate of deposit (CD)
is a bank acknowledgment of receipt of money with a promise to repay it, with stated interest, at a specified future time.
CD
abbreviates certificate of deposit.
Promissory note
is a twoparty promise to pay money other than a certificate of deposit.
Trade acceptance
is a twoparty draft used when a buyer can’t pay cash to the seller until he resells the goods.
Primary liability
is borne by the maker of a note or acceptor of a draft, who are required to pay the instrument according to its terms.
Secondary liability
is borne by the endorser or drawer, whose liability arises from another’s refusal to pay.
Endorsement
is a written signature on a negotiable instrument.
Special endorsement
ensures that the instrument can’t be negotiated without that person’s endorsement.
Blank (general) endorsement
is a signature using only the endorser’s name.
General endorsement
is another term for blank endorsement.
Restrictive (collection) endorsement
makes the instrument nonnegotiable.
Collection endorsement
is another term for restrictive endorsement.
Qualified endorsement
passes title, but limits the endorser’s liability to subsequent holders if the instrument is later dishonored.
Unqualified endorsement
places no limitation on the endorser’s liability to subsequent holders.
Holder
possesses an instrument drawn, issued, or endorsed to him, to his order, to bearer, or in blank.
Holder in due course
is a holder who takes an instrument for value, in good faith, and without notice that it is overdue or has been dishonored or of any defense against or claim to it by any person.
Personal defenses
include all claims on the part of any person and simple contract defenses, such as lack of consideration, misrepresentation, and fraud.
Real defenses
are based on the existence of the instrument, such as duress, incapacity, illegality, and discharge in bankruptcy.
Warehouse receipt
is a legal document that provides title to goods in storage and ensures delivery to the receipt holder.
Bill of lading
is the written contract between the shipper and the carrier.
Carrier
is a professional transporter of goods.
Bailment
is the temporary transfer of custody for a particular purpose.
Bailor
transfers possession (but not ownership) of personal property to another (known as the bailee) with the expressed intent that the property be returned at the end of the bailment.
Bailee

possesses another’s property for a limited time for a specific purpose, such as repairmen.

Consignee

receives goods subject to a bill of lading. Consignorships goods subject to a bill of lading. Security interestgives the secured party a right to take personal property (collateral) that secures the loan made to the buyer.

Secured transaction

involves a lender, seller, or other creditor who has an interest in personal property that gives him the right to take that collateral if the debtor fails to perform.
Collateral
is personal property that secures the loan to the buyer.
Pledge
is the security device in which the lender holds the collateral.
Perfected security interest
exists when the creditor has filed the proper financing statement with the county or has obtained possession of the collateral.
Constructive notice
is knowledge presumed by law.
Financing statement
is filed in public records to give notice of a security interest in property.
Federal Trade Commission (FTC) Act
prohibits unfair or deceptive methods of commerce.
FTC
abbreviates Federal Trade Commission.
Magnuson
Moss Actrequires the written warranty, if any, for consumer products to disclose what is and is not covered, when it expires, whom it covers, what the warrantor will do if the product malfunctions, what service and parts are free, and how to obtain redress.
Limited warranty
contains the six disclosures required by the MagnusonMoss Act, but limits the buyer’s rights in some way.
Full warranty
promises to fix the product without charge and provides a ‘lemon’ provision.
Lemon provision
lets the buyer of a product that’s never been right get a replacement or a refund.
Truth in Lending Act
establishes disclosure requirements for any person who regularly grants credit or who makes finance charges on installment sales to people buying personal or real property for personal use.
Fair Credit Billing Act
allows the buyer of a defective product or service purchased with a credit card to refuse to pay if he first tries to return the property or give the merchant a chance to correct the problem.
Fair Debt Collection Practices Act
prohibits collectors from using unfair practices such as harassing the debtor, revealing information to others, and contacting the debtor (except through court process) if the debtor makes that request in writing.
Fair Credit Reporting Act
requires consumer reporting agencies to exercise fairness, impartiality, and respect for consumers’ rights.
Equal Credit Opportunity Act
prohibits credit discrimination based on age, race, religion, national origin, receipt of welfare, or marital status.
Bankruptcy
adjusts the interests of insolvent debtors and their creditors through liquidation of the debtor’s assets and distribution of the proceeds or through reorganization of the debtor’s affairs, free of claims, with partial or full payment of debts.
Chapter 7 (of the Bankruptcy Act)
liquidates the nonexempt assets of a bankrupt, distributes the proceeds to the bankrupt’s creditors, and discharges the rest of the debts.

Chapter 13 (of the Bankruptcy Act)

allows reorganization of individual bankrupts.