Business Law Ch 13-1 & 13-2 Terms
What are the three ways a buyer can accept goods?
1. After reasonable time to inspect goods, buyer signifies to seller that the goods conform to the contractor will be retained in spite of their noncomformity. 2. The buyer acts inconsistently with the seller's ownership. 3. The buyer fails to make an effective rejection after having a reasonable opportunity to inspect the goods.
In the case of an accommodation or non-conforming goods being shipped the buyer has three options.
1. Reject the whole. 2. Acccept the whole. 3. Accept any part, as long as its separation does not affect the value or marketability of the remainder, and reject the rest.
How can a seller enforce an oral contract for non-resalable goods?
1. The seller has substantioally begun to manufacture them. 2. The seller has made contracts to botain the goods from third parties.
Ownership
A collection of rights that allow the use and enjoyment of property.
Accommodation
An arrangement with or a favor to the buyer after notification by the seller.
Vendee
Buyer on sales of goods and contracts to sell.
Receipt of Goods
Buyer takes physical possession or control of the goods.
Price
Consideration for a contract to sell or sale of goods.
Sale
Contract in which ownership of the goods transfers from the seller to a buyer for a price.
Contracts of Adhesion
Contract in which the more powerful party dictates all the important terms.
Payment
Delivery of the agreed-upon price and the concurrent acceptance of it by the seller.
Barter
Exchange of goods for goods.
Non-Conforming Goods
Goods a seller provides which do not meet the buyer;s specifications or are defective in some way, but that might suffice to fulfill a contract.
What are the four exceptions to the Statute of Frauds for sales contract?
Goods received and accepted by the buyer. Buyer pays for goods and seller accepts payment. Goods specially made not suitable for sale to others. Party against whom enforcement sought admits oral contract made.
Conforming Goods
Goods that specially fulfill the seller's obligations under the contract.
Unconscionable Contract
Grossly unfair contract for the sale of goods.
Constructive Delivery
Having a symbol of a gift substituted in its delivery.
How does a merchant confirm an oral agreement with another merchant?
If they do not object within a reasonable time or written acceptance.
How does a merchant cancel an oral agreement between merchants?
If they send a written objection to the confirmation within ten days.
What does the Statute of Frauds require?
It requires sales contracts for goods valued at $500 or more to be evidenced in writing to be enforcable in court.
Goods
Items of tangible, movable, personal property.
Under the UCC, goods do not include the following?
Money, Intangible Personal Property. Patents, Copyrights, and Trademarks, whch are exclusive rights granted by the federal government in the intellectual products of inventors, writers, and commercial entities. Real Property.
Bill of Sale
Receipt that serves as written evidence of the transfer of ownership of goods.
Perfect Tender Rule
Rule in sales that requires the tender of goods to match the buyer's order absolutely.
Vendor
Seller on sales of goods and contracts to sell.
Delivery
Subject matter of the contract is placed within the possession or control of the owner.
A court may do the following if a contract is deemed unconscionable?
The court can refuse to enforce the contract, or it can enforce the legal part and refuse to enforce the illegal part. They can also modify the terms of agreement to make it fair.
Contract to Sell
Transaction in which the ownership is to take place in the future.
Proposal for Addition
When both parties are merchantsm a new term inserted by the offeree automatically becomes part of the contract if the offeror fails to object within a reasonable time. Must not change the material offer.