Business Law 3300-10 Chapter 11 Domestic & International Sales

In the case of Crest Ridge Construction v. Newcourt, where an order for construction materials that Crest Ridge needed was rejected for failure to meet credit terms, and Crest Ridge had to find a higher cost replacement and sued Newcourt for damages, the appeals court held that:

Newcourt was liable for breach of contract because there was sufficient evidence that the two companies had formed a contract under the definition found in the UCC

Contracts under Article 2 of the UCC could include...

a load of wheat

A warranty may be defined as:

a statement by the seller that its goods conform to certain quantity, safety, performance or title standards

The definition of a good, under the UCC is...

all things (including specifically manufactured things) which are movable at the time of identification to the contract for sale

______ ______ are forseeable damages that result from a seller's breach

consequential damages

A seller or buyer is considered a merchant by the UCC when he: a. regularly deals in goods of the kind involved in the transaction b. by occupation presents himself as having knowledge of skill specialized to the transaction c. employs an agent or broker who holds himself out as having requiste knowledge or skill d. a, b, or c

d. a, b, or c

Article 2 provides minimum requirements that goods must satisfy to be merchantable, including that the goods must be: a. of the highest quality reasonably possible under the contract b. reasonably fit for the purposes for which they are being sold c. of fair, average, and merchantable quality d. b and c

d. b and c

To be a valid contract, the writing of a contract under the UCC: a. must be complete as to price and quantity b. must be complete as to time of payment c. must be complete as to all essential terms d. must be complete as to all parties involved e. none of the above necessarily applies

e. none of the above necessarily applies

T/F: Under the UCC's statute of frauds provision, Article 2-201, all service contracts must be in writing

false

Articale 2 of the UCC covers the sale of _____

goods

Article 2 of the UCC defines good faith dealings as...

honesty in fact in the conduct or transaction incurred

Suppose parties to a contract that is under the UCC fail to specify some term. The UCC...

may fill the gaps in those terms

Suppose two parties to a contract that is under the UCC decide to make a signification change in the contract, obligating the seller to provide more goods. This change require:

no consideration

When a buyer has agreed to purchase the total output of a seller, there is a(an):

output contract

According to the UCC's statute of frauds all...

sales of goods worth more than $500 must be in writing

T/F: After a buyer breaches a contract for the sale of goods, the seller can resell the goods (for the remaining balance of the goods) to another buyer

true

T/F: Although all parties to a sale under the UCC must meet the UCC's good faith standard, merchants must meets even higher standards of honesty and good faith

true

T/F: The UCC does not apply to the sale of investment securities

true

T/F: The difference between the contract prices and the price a buyer must pay for replacement goods when a seller is in breach is called cover

true

T/F: Under the common law, a contract is not formed unless there is no question that an offer has been accepted. Article 2 provides that a contract can be formed in any manner, including "conduct" that shows an agreement between the parities

true