Business Law - Chapter 10

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  1. What is the UCC
    • Attempts to provide a consistent, uniform, and integrated framework of rules to deal with all phases ordinarily arising in a commercial sales or lease transaction¬†
    • contract formation
    • passage of title and risk of loss
    • performance
    • remedies
    • payment of goods
    • warehoused goods
    • secured transactions
  2. What is Article 2
    Governs contracts for the sale of goods (tangible, movable personal property)
  3. If there is a conflict between the UCC and common law, what has president
  4. What is Article 2A
    governs contracts for the lease of goods
  5. What are the steps in forming a sales and lease contract
    • Offer
    • Acceptance
    • Consideration
  6. What does and does not have to be in a sales or lease contract to be formed
    • Does:
    • - subject matter
    • - Quantity¬†
    • Does not:
    • - All terms
    • - price
    • - performance
  7. What are the different methods to accept a sales or lease contract
    • any means of reasonable communication
    • promise to ship or prompt shipment of conforming goods
    • performance requirement
  8. what does a definite expression of acceptance of a sales or lease contract create?
    creates a contract even if the terms of the acceptance differ from those of the offer, unless the additional or different terms in the acceptance are expressly conditioned on the offeror's assent to those terms
  9. does a modification of a contract for the sale of goods require consideration?
  10. what is the statue of frauds for sale and lease contracts
    sale of goods priced at $500 or more
  11. how many days after a written confirmation of an oral contract between merchants is not objected to in writing by the receiver for it to be enforceable
    10 days
  12. What is the parole evidence rule
    • the terms of a clear and complete written contract cannot be contradicted by evidence of prior agreements or contemporaneous oral agreements
    • evidence is admissible to clarify the terms of a writing if the contract terms are ambiguous or to learn or clarify the parties intentions
  13. What can courts do if they find a sales or lease contract unconscionable
    • refuse to enforce the contract
    • refuse to enforce the unconscionable clause
    • limit the application of any unconscionable clauses to avoid an unconscionable result
  14. When does the title and risk of loss pass during a shipment contract
    title and risk of loss passes on delivery of conforming goods to the carrier
  15. When does the title and risk of loss pass during a destination contract
    title and risk of loss passes when the goods are delivered to the buyer or point of destination
  16. when is the title and risk of loss passes during a delivery without movement of the goods
    • title passes on the formation of the contract
    • risk of loss passes when the buyer receipts the goods (merchant) or the tender of delivery (nonmerchant)
  17. Who has risk of loss when a sales or lease contract is breached
    • seller or lessor breaches: does not pass to the buyer or lessee until the defects are cured
    • buyer or lessee breaches: immediately shifts to the buyer or lessee
Card Set
Business Law - Chapter 10
Chapter 10 - Contract Performance, breach, and remedies
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