BUSN LAW Module 3

What does business ethics on a global level look like?

Being aware of world religions, cultural norms & ethics, as well as outsourcing, avoiding corruption, and Monitoring the Employment Practices of Foreign Suppliers

Life Products Inc. enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to what?

Both transactions

What are the three roles of business in society?

Business as a: Pure Profit Maximizer As a corporate citizen A four-part analysis - (The legal implications of each decision., the public relations impact, the safety risks for consumers & employees and the financial implications)

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto can what?

Can reject the entire shipment

Ethical principles and philosophies derive from

Duty-based ethics = idea that every person (and every business) has certain duties to others, including both humans and the planet. Outcome-based/utilitarianism ethics = focuses on the consequences of any given action in order to maximize benefits and minimize harms. Corporate Social Responsibility = The idea that corporations can and should act ethically and be accountable to society for their actions.

The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open. True or false?

False

The UCC states that an agreement sufficient to constitute a contract cannot exist if the moment of its making is undetermined. True or False?

False

The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used in forming other types of contracts. True or false?

False

When a buyer breaches a sales contract, the risk of loss remains with the seller to the extent of any deficiency in the buyer's insurance coverage. True or False?

False

Express and implied warranties do not displace each other because more than one warranty can cover the same goods in the same transaction. True or false?

True

If a person buys cattle at a livestock auction, title will pass to the buyer when the cattle are physically delivered unless the parties agree otherwise. True or false?

True

The obligation of commercial reasonableness underlies every sales and lease contract. True or false?

True

Under the perfect tender rule, a buyer or lessee has the right to insist on goods that conform to their contract in every detail. True or false?

True

If a seller fails to deliver the goods, the buyer can purchase other goods to substitute for those due under the contract, but cannot then sue for consequential damages. True or False?

False

If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC. True or false?

False

Tender can occur at any hour and in any manner—such as by a phone call to the buyer, allowing "fifteen minutes to pick up the goods." True or False?

False

If a court determines that a contract involving both goods and services is primarily a goods contract, any dispute over the deal will be decided under the UCC. True or false?

True

The parties to a sales contract can limit or exclude consequential damages for any commercial loss—such as a business's lost profits or property damage. True or false?

True

To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts. True or False?

True

As businesses make decisions, they must analyze the alternatives in a variety of ways, one of which is from an ethical perspective. In analyzing alternatives in this way, businesses may take one of two approaches.

Duty-based ethics & outcome-based ethics

A bar of soap is unmerchantable if stepping on it would cause its user to slip and fall. True or false?

False

A buyer is required to cover and a failure to do so will bar the buyer from using any other remedies available under the UCC. True or false?

False

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC. True or false?

False

If a contract for a sale of goods leaves the quantity term open, there is a basis for determining a remedy. True or false?

False

A seller who tenders nonconforming goods has reasonable grounds to believe that the buyer will accept the tender if it includes a price allowance. True or false?

True

What approach is normally used when making ethical business decisions?

Inquiry Discussion Decision Review Approach aka Business Process Pragmatism by Leonard Bucklin

Ethics

Moral principles and values applied to social behavior.

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, including a prompt shipment of the goods. True or false?

True

What are some sources of ethical issues in business decisions?

Short-term profit maximization Social Media Awareness Rationalization Uncertainty

An implied warranty can arise as a result of a well-recognized trade custom that a court could infer the parties intended to apply to their contract. True or false?

True

A contract for a sale of natural gas is a contract for a sale for goods. True or false?

True

If a seller supplies ten white dishwashers in response to an order for ten black washing machines—"F.O.B. the seller's warehouse"—and the goods are damaged in transit to the buyer's store, the loss falls on the seller. True or false?

True

In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract. True or false?

True

Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must do what?

deliver the plywood to a particular destination.

Jake offers to sell Kyle a collection of baseball cards. To qualify as a sale under the UCC, Kyle's payment for the cards must be

in cash, or its equivalent, or in other goods or services.

Business Rents LLC and Cartage Trucking Inc. enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, Business Rents must ship or tender lifts to Cartage that, with regard to the contract specifications, conform in what way?

in every way

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor

is excused from the performance of its contracts