fin 240 kaplowitz worksheet 20.1: the uniform commercial code and the scope of articles 2 and 2a

Article 2 deals with the sale of _____. It does not deal with real property (real estate), services, or _____ property such as stocks and bonds. Thus, if the subject matter of a dispute is goods, the UCC governs. If it is real estate or services, the _____ law applies. If a contract involves both goods and services, the courts generally use the _____ test to determine whether to apply the UCC.

goods, intangible, common, predominant-factor

In contracts that involve the sale of both goods and services, once a court decides that such a contract is primarily a goods contract, any dispute, even over the services portion, will be decided under the UCC.

true

Sales contract

a contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price

Merchant

a person who is engaged in the purchase and sale of goods; under the uniform commercial code, a person who deals in goods of the kind involved in the sales contract

The Uniform Commercial Code (UCC) views a sale of goods as:

a single, multifaceted legal occurrence

Predominant-factor test

a test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services

The Uniform Commercial Code has been adopted by:

all of the states in whole or in part

Article 2 of the UCC governs _____.

contracts for the sale of goods

The common law of contracts and the Uniform Commercial Code are exactly the same.

false

Lease agreement

in regard to the lease of goods, an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments

A merchant is a person who deals with goods of the kind _____ the sales contract. A merchant is a person who, by occupation, holds himself or herself out as having _____ and skill unique to the practices or goods involved in the transaction. This broad definition may include banks or universities as merchants.

involved in, knowledge

Lessee

one who acquires the right to the possession and use of goods under a lease

Lessor

one who transfers the right to the possession and use of goods under a lease

The UCC attempts to provide a consistent and integrated framework of rules to deal with all phases _____ in a commercial sales transaction from start to finish.

ordinarily arising

Tangible property

property that has physical existence an can be distinguished by the senses of touch, sight, and so on, such as a car

Intangible property

property that is incapable of being apprehended by the senses (such as by sight or touch), such as intellectual property

A consumer lease is a special type of lease where the lessor _____ engages in the _____ of leasing or selling, the lessee (except an organization) leases the goods " _____ for a personal, _____, or household purpose," and the total lease _____ are less than a dollar amount set by state statute.

regularly, business, primarily, family, payments

A person who employs a merchant as a broker, agent, or other intermediary has the _____ of a merchant in that transaction.

status

In order for the rules contained in the UCC to apply to a contract for the sale of goods, the goods must be _____.

tangible (have physical existence)

Sale

the passing of title (evidence of ownership rights) from the seller to the buyer for a price

When merchants are involved in commercial sales transactions, they are held to special business standards. When nonmerchant buyers or sellers are involved:

they are held to less demanding standards than merchants