Sales - Part 4&5

Card Set Information

Author:
stac8199
ID:
149068
Filename:
Sales - Part 4&5
Updated:
2012-04-21 13:41:14
Tags:
sales leases
Folders:

Description:
Sales Title & Performance
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user stac8199 on FreezingBlue Flashcards. What would you like to do?


  1. Title can't pass under a K for sale prior to what under 2-401?
    identification of the goods to the K
  2. Any retention or reservation by the S of the title in goods shipped or delivered to the B is limited to what under 2-401?
    a reservation of SI
  3. How does title pass from the S to the B under 2-401?
    in any manner and on any conditions expicitly agreed on by the parties
  4. Typically when and where does title pass from the S to the B under 2-401?
    at the time and place at which the S completes performance with reference to the physical delivery of the goods
  5. When and where does the title pass from S to B in a shipment K under 2-401?
    at the time and place of shipment
  6. When and where does the title pass from S to B in a destination K under 2-401?
    title passes on tender at the destination
  7. A rejection or other refusal by the B to receive or retain the goods, whether justified or not, or a justified revocation of acceptance does what to title of the goods under 2-401?
    revests title in the S which is NOT a sale
  8. What is the general rule about the transfer of title in 2-403?
    you can only give the title that you have and nothing more
  9. Can a person with voidable title transfer a good title to a GFPFV under 2-403?
    yes
  10. Any entrusting of possession of goods to a M who deals in goods of that kind gives him the power to do what under 2-403?
    transfer all rights of the entruster to a BIOCOB
  11. When determining whether a purchaser is a BIOCOB, are you looking to the S or the B?
    based on the S and his business
  12. What is the definition of good title, real title, or clear title?
    plain title...either you have it or you don't
  13. What is a void title?
    • it isn't a title at all but is rather the absence of title
    • generally used when referring to theft
  14. What is voidable title?
    • something in the middle b/t void title and clean title
    • generally used when referring to a swindler or fraudster
  15. If there is a chain of possession involving theft, is the original owner entitled to get his property back from the ultimate purcahser?
    yes - the purcahser from the theif bears the RoL and is in a better position to guard against this by checking into the item's history and seeking proof of ownership
  16. What are the 4 instances under 2-403 by which a purchaser can obtain voidable title?
    • the transferor was decieved as to the identity of the purchaser
    • delivery was in exchange for a bad check
    • X was to be a cash sale
    • delivery was procured thru fraud that would constitute larceny
  17. Is the original owner entitled to get his property back from the ultimate purchaser who bought from someone with voidable title?
    Not if the ultimate purchaser can show that she is a GFPFV
  18. What constitutes a GFPFV?
    • must be a purchaser
    • must have given value
    • must have been acting in good faith when took the goods
  19. Does buying property that you actually know the S doesn't rightfully own qualify you as a GFPFV?
    no
  20. What constitutes entrusting under 2-403?
    • any delivery (no matter what) AND
    • any acquiescence in retention of possession
  21. What passess at the sale of an entruster?
    • you have to go back to the rights of the entruster
    • if a M that deals in goods of that kind then has power to transfer all his rights to the BIOCOB
  22. What are the criteria for being a BIOCOB?
    • buyer of goods
    • good faith
    • can't know violates rights
    • buy in ordinary course of S business
    • sale happens the way the S usually sells his stuff
  23. What test is used in determining whether a M is one who deals in goods of that kind?
    fundamental nature test
  24. What are the 3 general policy reasons for placing the RoL on the entruster?
    • (1) protects the innocent B who believes the M has legal title to the goods and can therefore pass good title to another
    • (2) entruster is in better position than the innocent B to protect against the risk that an intermediary won't pay for or deliver the goods
    • (3) entrustment clause facilitates the flow of commerce by allowing B to rely on a M's apparent legal right to sell goods
  25. In addition to proving the M's actual vocational status under 2-403, what must also be shown in order for the entrusting provisions to apply?
    that the original owner and ultimate B were aware of that status
  26. When does identification of goods under 2-501 occur?
    when the individual item(s) become separated out from the whole world of other such articles and are designated as the particular goods
  27. Must the goods be in a deliverable state or must all of the S duties with respect to processing the goods be completed in order for identification to occur?
    No
  28. In the absence of an agreement what are the 3 ways identification occurs under 2-501?
    • (1) when K is made if the goods already exist and are identified
    • (2) future goods - when goods are shipped, marked, or otherwise designated by the S as goods to which the K refers
    • (3) crops when planted and young when conceived provided these goods are to be delivered w/in 12 months of K
  29. Is the mere making of the K with reference to an undivided share in an identified fungible bulk sufficient for identification under 2-501?
    yes if there is no explicit agreement otherwise
  30. The general policy is to resolve all doubts in favor of identification which has been read by commentators to favor what?
    the earliest possible moment of identification for which an argument can be made
  31. The manner, time, and place for tender are determined by what generally under 2-503?
    the agreement and Article 2
  32. What does tender of delivery require the S to do under 2-503?
    put and hold conforming goods at the B disposition and give the B any notification reasonably necessary to enable him to take delivery
  33. What are the particular rules regarding tender of delivery under 2-503?
    • (1) must be a at reasonable hour
    • (2) goods must be kept available for a period reasonably nec to enable the B to take possession
    • (3) B must furnish facilities reasonably suited for receipt of the goods
  34. What is the default rule regarding the effectiveness of tender for goods lost in transit under a shipment K?
    the tender is effective even if the goods are lost in transit provided the shipment method was reasonable
  35. Under a destination K, the S is responsible for doing what to effectuate tender?
    getting the goods to the B
  36. Under a shipment K, the S is responsible for doing what to effecuate tender?
    • get the goods in the hands of the carrier
    • obligated to send the goods off properly but not responsible for their actually getting their
  37. Where the S is demanding payment on delivery, what must he first allow the B to do in order to avoid impairing his tender?
    inspect the goods
  38. What determines what is a reasonable hour for tender and what constitutes a reasonable period for holding the goods available?
    UoT and circumstances of the particular case
  39. What is the definition of a shipment K under 2-504?
    one in which the S is required or authorized to send the goods to the B and the K doesn't require him to deliver them at a particular destination
  40. Between shipment and destination Ks, which is the default?
    shipment K
  41. What are the 3 requirements for shipment by S under 2-504?
    • (1) put goods in possession of carrier and make reasonable K for transport
    • (2) obtain and promptly deliver or tender any doc nec for B to obtain possession of goods
    • (3) promptly notify B of the shipment
  42. Who is responsible for getting the goods to the B under a shipment K?
    the carrier
  43. Must the goods be conforming for there to be tender under a shipment K?
    yes
  44. What is used to determine whether the S has promptly notified the B of the shipment under 2-504?
    the totality of the circumstances
  45. How is the requirement of prompt notice under 2-504 construed as taking into consideration?
    the needs of the B to be informed and sufficient time to take action to insure against loss
  46. Failure to notify the B or make a proper K under 2-504 regarding shipment K is grounds for rejection only if what?
    a material delay or loss ensues
  47. If the S fails to follow the requirements of 2-504 for a shipment K but no material delay or loss ensues, what must and may the B do?
    • B must accept the goods
    • B may pursue other damages
  48. Does the responsibility of the S under a shipment K to make a proper K of carriage make the S a guarantor of the carrier's service or that there will be no trouble along the way?
    no...the S is required to make a reasonable K of carriage, not a foolproof one
  49. Does the S have an obligation under 2-504 to investigate the amount and terms of insurance held by the carrier?
    no
  50. Tender of delivery is a condition to the B's duty to do what under 2-507?
    accept the goods and to pay for them
  51. Tender entitles the S to what under 2-507?
    acceptance of the goods and to payment according to the K
  52. Where payment is due on delivery to the B of goods, his rights against the S to retain or dispose of them is conditional on what under 2-507?
    making the payment due
  53. When the B has rejected NCG and the time for performance has not yet passed, what can the S do under 2-508(1)?
    seasonably notify the B of his intention to cure and then do so w/in the K time
  54. When the B has rejected NCG and the time for performance has already passed, when can the S still attempt to cure under 2-508(2)?
    when the S had reasonable grounds to believe the goods would be accepted
  55. What is the criteria for S cure under 2-508(2) when time for performance has passed?
    • (1) S reasonably believed B would accept
    • (2) seasonably notifed B of willingness & ability to cure
    • (3) cure w/in a reasonable time
  56. If a S is attempting to cure under 2-508(1) before the time for performance has passed, is the B obligated to allow the S a chance to cure?
    yes
  57. Does the shaken faith doctrine apply to the S ability to cure under 2-508?
    yes - it is the standard used to determine when B may reject S's attempts to cure
  58. Does the S have a right to cure when the NCG is a piece of art?
    no and the B isn't obligated to accept the substitute
  59. What kinds of repairs and adjustments are means by which an imperfect tender may be cured?
    minor repairs and reasonable adjustments
  60. Is a B obligated to accept substantially repaired goods under 2-508?
    no
  61. For the S to have the right to cure after performance under 2-508(2), is it nec that the S have knowledge of the defect?
    no only that he act in GF and have a reasonable expectation that the original goods would be accepted
  62. If the S cures under 2-508(2) after the time of performance, does the B still have a claim for damages?
    yes
  63. If there is a "no replacement" clause in a K, what is its effect on the S's ability to cure under 2-508?
    the S is held to rigid compliance
  64. What determines what constitutes a reasonable time to substitue a conforming tender under 2-508?
    the attending circumstances
  65. If the S can't assure the B that he will soon make a conforming tender but only that he would try to do so, does this constitute seasonable notice under 2-508?
    • no an effective offer to cure requires more
    • must be both willing and able to deliver the goods!!!
  66. If the S tenders something he knows to be different from what is promised but which he could reasonably expect wouldn't be any less valuable or desirable in the eyes of the B, does this satisfy the requirement that S have reasonable grounds to believe goods would be accepted under 2-508(2)?
    yes
  67. If the S tenders knowing of some defect int he goods with which the B will probably be unhappy but which the S wouldn't expect to prompt a rejection b/c the defect doesn't appear that great or troublesome, does this satisfy 2-508(2)?
    yes
  68. The argument that the S wouldn't reasonably expect the B to reject NCG really on works for what?
    minor defects
  69. Is the S limited to only one attempted cure under 2-508?
    no
  70. Under the shaken faith doctrine can a B eventually reject repeated offers of cure, even if each attempt at cure is in itself successful?
    yes
  71. The RoL tends to follow the party that is more likely to have what?
    insurance on the goods unless the parties otherwise agree
  72. When determining who has the RoL, does who actually has insurance on the goods matter?
    no
  73. If the S is a non-merchant, when does the RoL shift to the B under 2-509?
    at the time of tender
  74. If the S is a M, when does the RoL shift to the B under 2-509?
    on receipt (taking physical possession)
  75. What is the central issue in determining who has the RoL under 2-509?
    who has actual control of the goods at the time of loss
  76. Is the cost of shipment the same thing as RoL?
    no and these may belong to different parties of the K
  77. Must the S deliver conforming goods to the carrier for RoL to shift to the B under a shipment K pursuant to 2-509?
    yes
  78. In a shipment K, when does RoL pass to the B under 2-509(1)(a)?
    when the goods are duly delivered to the carrier pursuant to the rules of 2-504
  79. In a destination K, when does RoL pass to the B under 2-509(1)(b)?
    when the goods are tendered so as to enable the B to take delivery
  80. Can a S act as his own bailee for purposes of RoL under 2-509(2)?
    no this must be a 3P
  81. When does RoL pass to the B when the goods are held by a bailee under 2-509(2)?
    • (1) on receipt of possession or control of doc of title covering the goods
    • (2) on acknowledgment by the bailee of the B rights to possession of the goods
  82. Are the parties to a K free to allocate RoL any way they wish under 2-509?
    yes but language must be clear and conspicuous and mention RoL specifically
  83. Is boilerplate language in a SA speaking only of the B obligation to keep the goods insured at all time sufficient to shift the RoL to the B?
    no
  84. What is the definition of a bailee?
    a person engaged in the business of storing goods for hire
  85. If the tender or delivery of goods is such that the B would have the right to reject, who bears the RoL under 2-510?
    the S until cure or acceptance
  86. If the B rightfully revokes acceptance, who is treated as having the RoL and from when under 2-510(2)?
    treat the RoL has having rested on the S from the beginning to the extent of any deficiency in B's insurance coverage
  87. Does the S privilege of cure shift the RoL under 2-510?
    not until the cure is completed
  88. If the B repudiates or is otherwise in breach before the RoL has passed to him, what may the seller do regarding RoL under 2-510(3)?
    may treat the RoL as resting on the B for a commercially reasonable time to the extent that the S insurance is deficient
  89. In cases where there has been a breach of K, if the one in control of the goods is the aggreived party, whatever loss or damage may prove to be uncovered by his insurance falls on whom under 2-510?
    the rotten dirty breacher
  90. If the K requires payment before inspection, the NC of goods doesn't excuse the B from paying except in what circumstance under 2-512?
    NC appears w/o inspection
  91. Where the K requires the B to pay before inspecting the goods, does that payment constitute an acceptance, impair the B right to inspect, or impairy any of his remedies under 2-512 in the event of default by the S?
    no
  92. Where the goods are tendered or delivered or identified to the K for sale, the B has a right b4 payment or acceptance to do what under 2-513?
    inspect them in any reasonable place and time and in any reasonable manner
  93. If the S is required to send the goods to the B, does the B still have the right to inspect them after their arrival under 2-513 b4 making a payment or accepting them?
    yes
  94. Who bears the expenses of inspection under 2-513?
    the B but these may be recovered from the S if the goods don't conform or are rejected
  95. If the place or method of inspection is fixed by the parties, is this presumed to be exclusive under 2-513?
    yes
  96. If the place or method of inspection is fixed by the parties under 2-513 does this postpone identification, shift the place for delivery, or pass the RoL?
    no
  97. Does the B have right to inspect even if the sale of goods is "as is" under 2-513?
    yes
  98. What determines whether the inspection was at a reasonable time/place and in a reasonable manner?
    CoPCoDUoT
  99. If the parties clearly intended the method of inspection named in their K to be a necessary condition w/o which the entire deal is to fail, what is the result if that method becomes impossible under 2-513?
    the K is avoided
  100. If the parties were merely seeking to indicate a convenient and reliable method for inspection when they included it in their K, what is the result if that method becomes impossible under 2-513?
    it may be substituted by any other reasonable method of inspection

What would you like to do?

Home > Flashcards > Print Preview