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  1. What is a sale?
    transfer of title to goods from seller to buyer
  2. What is a lease?
    transfer of right to possession and use of goods in return for consideration
  3. What are the 2 kinds of leases?
    consumer lease -- merchant to individual for personal, family, or household use

    finance lease -- generally 3 parties; lessor, supplier, lessee
  4. What are the laws/statutes governing sales and leases?
    • sales -- Article 2 of UCC or CL
    • leases -- Article 2A of UCC or CL
    • international commerce -- CISG
  5. What is the good faith principle?
    UCC requires sales and leases to be performed with honesty in fact, and merchants to observe reasonable commercial standards
  6. What is the battle of the forms?
    if offer form is different from acceptance form
  7. Describe how UCC provisions differ from common law provisions.
    definiteness of terms -- open term provisions, quantity has to be defined

    counteroffers -- battle of the forms

    contract modification -- consideration does exist if both parties agree in good faith

    irrevocable offers -- option contract and firm offer (= merchant promised in writing to keep offer open)

    manner of acceptance -- reasonable manner

    statute of fraud -- sale of goods priced at least $500 has to be in writing
Card Set
Review questions for Business Law and the Regulation of Business, 10th edition, Mann&Roberts, chapter 19
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