law ch 11
Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready. Ready should:
show that the value of the system is greater that the value of the service
A person may hold legal title to a good if
the good exists AND the good has been identified to the contract
Under the UCC article 2, a sale must involve the transfer of the _____ to the goods involved in the sale
title
Most states have recently adopted ____ to cover certain leases of personal property
UCC article 2A
contracts under Article 2 of the UCC could include
a load of wheat
Louisiana is the only state that has not
adopted UCC article 2
The UCC defines goods as
all things which are moveable at the time of identification to the contract for sale
UCC article 2 has been adopted
by 49 states
a good is tangible if it
can be seen and touched
commercial codes
date back thousands of years
early sales law was governed by state law. this created a significant legal challenge for managers because
different rules developed across the states
Article 2 of the UCC covers the sale of
goods
Under the UCC, a merchant is NOT one who
has an internet site that links to sellers of multiple goods
the UCC defines good-faith dealings as
honest in fact in the conduct or transaction incurred
an item is moveable if
it can be carried from one location to another
The subject matter of a sales contract is not considered a good under article 2 unless
it is moveable and tangible
The UCC's article 2 does not cover the sale of
land
the title represents
legal rights to ownership of a thing
Lex mercatoria refers to
medieval european rules governing trade issues
contracts most likely to fall under UCC article 2
-GM buys seat belts from Ace to install in new Cadillacs -Abbie purchases a suite of office furniture while she is in London for 2 years
In a sale under the UCC, title to goods passes when the goods
-arrive for shipment at a port or train or trucking facility -arrive at the buyer's facility -leave the seller's facility -when the goods are halfway between buyer and seller
a seller or buyer is considered a merchant by the UCC when he
-regularly deals in goods of the kind involved in the transaction -by occupation presents himself as having knowledge or skill specialized to the transaction -employs an agent or broker who holds himself out as having requisite knowledge or skill
every state except ____ has adopted UCC Article 2
Louisiana
_____ of the uniform commercial code governs the law of commercial sales
article 2
Article 2A of the UCC, recently adopted by most states, expands the UCC to cover:
leases of personal property
sales law developed in medieval Europe was known as
lex mercatoria
most states accept the UCC's provision on most topics because
the benefits of lowering the costs of doing business across state lines was so great
In Paramount Contracting Co. v. DPS Industries, DPS claimed there was a contract to deliver hundreds of truckloads of dirt for Paramount, which claimed no contract had come into existence. The courts held that:
the contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breeched the contract
By definition, a sale under Article 2 of the UCC requires that
title to the goods pass from the seller to the buyer and that a price be paid for the goods
the UCC's purpose is
to simplify, clarify and modernize the law governing commercial transactions
Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready. Ace should:
try to show that the value of the service dominates
