Essentials of Business Law Chapter 17

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Essentials of Business Law Chapter 17
2014-06-03 14:52:04
Business Law

Chapter 17
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  1. Contract for sale
    A legally enforceable agreement that has as its purpose the immediate transfer of title to personal property in return for consideration.
  2. Existing goods
    Goods that physically exist and are owned by the seller at the time of sale.
  3. Future goods
    Goods that do not exist at the time of the sales transaction but are expected to come into the possession of the seller.
  4. Contract to sell
    An agreement to sell future goods.
  5. Contract for labor and materials
    A sales contract for goods of special design, construction, or manufacture.
  6. Contract for sale with the right of return
    A contract for the sale of goods that gives the buyer both title to the goods and the opportunity to return them to the seller at a later time.
  7. Sale on approval
    A contract for the sale of goods subject to the buyer's approval.
  8. Sale or return
    An agreement whereby the seller will accept the return of goods at the request of the buyer to maintain goodwill, rather than because the seller is legally obliged to accept the returned goods.
  9. Auction without reserve
    One at which the goods must be sold to the highest bidder and may not be withdrawn after bidding has begun.
  10. Auction with reserve
    One that gives the auctioneer the right to withdraw the goods at any time before announcing completion of the sale if reasonable bids are not made.
  11. Conditional sales contract
    A sales contract that includes conditions that must be met either before or after the sale is completed.
  12. FOB shipping point
    Title to goods passes from the seller to the buyer when the carrier receives the shipment and it is understood that the buyer will pay the transportation charges.
  13. FOB destination
    Title passes from the seller to the buyer when the goods are delivered to the buyer.
  14. Stoppage in transit
    When the buyer is insolvent, the right of an unpaid seller to stop goods in transit and order the carrier to hold them for the seller.
  15. Specific performance
    An order that requires the seller to deliver the goods specified in the contract or face being held in contempt of court.
  16. Replevin
    An action to recover possession of specific goods wrongfully taken or detained by another.
  17. Cover
    When the seller fails to deliver the goods, the right of a buyer to buy similar goods elsewhere to substitute for those not delivered by the seller.