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31 Cards in this Set
- Front
- Back
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Good |
Anything movable at the time of purchase |
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Merchant |
A person who deals in goods even if they don't regularly sell a good, but are an expert |
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Firm Offer Rule |
An offer by a merchant in signed writing that gives assurance that it will be held open for a reasonable amount of time (no more that 3 months). In signed writing |
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Statute of Frauds |
Requires written evidence for sale of goods over $500 to be signed by the charged party. |
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Good Faith / Fair Dealing |
Honesty in fact in what is being performed. Merchants must observe reasonable commercial standards of fair dealing in the trade. |
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Open Price Term |
Parties may contract even though they have not agreed on a price |
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Delivery |
If not stated it is the sellers place of business or place of residence |
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Time of delivery |
Reasonable time |
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Time of Payments |
Time of delivery |
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Modification |
Needs no consideration to be binding. Cannot be modified aside from signed writing |
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Tender of Performance |
The time for shipment or delivery or performance will be in a reasonable amount of time if there is no time specified. The goods being offered must be kept available for a reasonable amount of time. |
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Bailment |
Transfer of possession of personal property with intent that will be returned |
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Perfect Tender Rules |
If the goods are nonconforming the buyer has the right to reject everything, accept everything or accept part and send back the rest |
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FAS (Free Along Side) |
Shipping over water. Title, risk and cost normally pass at the point when the goods are located on the dock next to the ship |
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FOB (Free On Board) |
Title, risk and cost transfer at the point mentioned (FOB Chicago, etc) |
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C&F (Cost and Freight) |
Seller will pay costs to the destination point |
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Performance by the Buyer |
Buyer has the right to inspect the goods before paying. (Reasonable amount of time) Must notify the seller of any nonconforming goods. |
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Commercial Impracticability |
Performance is rendered impracticable as a result of an unexpected event |
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Substituted Performance |
If neither party is at fault and the method of delivery of the goods becomes impracticable, then a substituted manner of performance must be tendered and accepted |
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Assurance of Performance |
If reasonable grounds for insecurity is present the other party may demand written assurance and suspend the performance until assurance is received. |
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Anticipatory Repudiation |
The aggrieved party can wait for performance for a commercially reasonable time or resort to ant remedy for breach |
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Transfer of Title |
Title and risk of loss transfers at the time and place the seller completes performance |
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Shipment Contract |
Title passes to buyer at the time and place the seller delivers goods to the carrier for shipment to the buyer |
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Destination Contract |
Title passes to the buyer on tender of goods at the destination |
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Good Faith Purchaser |
Someone who acts honestly, gives value and takes the goods without notice or knowledge of any defect in the title |
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Void Title |
A thief or person who acquires goods from someone under physical duress or guardianship has no title so they can't be a good faith purchaser |
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Voidable Title |
Title or possession of the good is acquired under the circumstances that permit the former owner to rescind the transfer and reacquire the title and the goods |
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Buyer in the Ordinary Course of Business |
A person who buys in good faith takes the good free of any other ownership rights or a security interest (Does NOT apply to sales by merchants of goods that have been stolen) |
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Sale on Approval |
Possession but not title is transferred to buyer for stated period of time and the buyer then has the ability to accept the goods and acquire the title |
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Sale or Return |
Goods are sold and delivered with the buyer with the agreement that the buyer has the right to return those goods to the seller - risk of loss is on the buyer |
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Revocation of Acceptance |
the buyer can do this if the defect remains uncorrected and substantially impairs the value of thegoods |
