Formation and Terms of Sales K
What does the UCC stand for?
The Uniform Commercial Code
True or False. Product liability law is partly grounded in criminal law and partly grounded in intellectual property law.
False.
Product liability law is partly grounded in contract law and partly grounded in tort law.
The basic duty of the Buyer is to __________.
A. Accept the goods
B. Pay for the goods
C. Deliver the goods
D. Both A and B
D. Both A and B
Basic Obligations.
•The basic duty of the seller is to deliver goods that conform to the contract with the buyer.
•The basic duty of the buyer is to accept and pay for goods if they conform to the contract. [2-301].
True or False. Parties may agree to remedies in the contract.
True. Yes, parties may agree to remedies in the contract.
True or False. A seller should try to minimize loss.
True. The seller should select the alternative that will minimize loss [2–704(2)]
True or False. When a contract is for both the sale of goods and the performance of services, then the controlling criterion should be the primary purpose/predominant factor of the contract.
True.
When a contract is for both the sale of goods and the performance of services, then the controlling criterion should be the primary purpose/predominant factor of the contract.
All of the following are defenses to product liability claims EXCEPT ________.
A. Statute of limitations
B. Strict liability
C. Assumption of risk
D. Product misuse
B. Strict liability
Defenses
•Statute of limitations
•Disclaimers and remedy limitations
•Product misuse
•Assumption of risk
•Contributory negligence
•Comparative negligence
•Preemption and regulatory compliance
True or False. If the express terms of a contract conflict with the past course of dealing between the parties, then the past course of dealing prevails.
False. Course of Dealing. If the express terms of a contract conflict with the past course of dealing between the parties, then the express terms prevail. [1-303 (e)].
The objective of the UCC remedies is to _____.
A. Favor the Seller.
B. Favor the Buyer.
C. Put the injured person in the same position that they would have been in if the contract had been performed.
D. Enforce real estate and service contracts.
C. Put the injured person in the same position that they would have been in if the contract had been performed.
True or False. A seller’s misrepresentation about a material fact about a product – a fact that would matter to a reasonable buyer – may invoke liability to buyer.
True. Yes, a seller’s misrepresentation about a material fact about a product – a fact that would matter to a reasonable buyer – may invoke liability to buyer.
True or False. Under an exclusive dealing contract, sellers have an obligation to use limited effort to supply goods to the buyer.
False.
Under an exclusive dealing contract, sellers have an obligation to use their best efforts to supply goods to the buyer and buyers are obligated to use their best efforts to promote their sale.
Product liability contract theories are based on _____.
A. Express warranty
B. Implied warranty
C. Both express and implied warranties
D. None of the above
C. Both express and implied warranties
Contract theories are based on an express or implied warranty.
True or false. Under the UCC, consideration is required to support modification of a contract
False. Modification. Consideration is not required to support modification of a contract, but the parties may specify that a writing is required. [2-209].
__________ damages, if provable, are the buyer’s lost profits caused by the seller’s breach of contract.
A. Consequential
B. Incidental
C. Punitive
D. Fundamental
A. Consequential
True or False. The buyer and seller may agree that the price of the goods is to be paid in money or other goods, services, or real property.
True.
Payment. The buyer and seller may agree that the price of the goods is to be paid in money or other goods, services, or real property.
•Legal analysis – IRAC
What does IRAC stand for?
•Issue
•Rule
•Analysis
•Conclusion
Information about recalled products can be found on the website of the _________.
A. U.S. Consumer Product Safety Commission
B. U.S. Statistics Administration
C. U.S. Product Control Board
D. U.S. Liability Awareness Commission
A. U.S. Consumer Product Safety Commission
Under the UCC, the __________ may delegate their duties to someone else.
A. The Buyer
B. The Seller
C. The Buyer or Seller
D. Neither the Buyer nor Seller
C. The Buyer or Seller
Assignment. Under the UCC, the buyer or seller may delegate their duties to someone else.
If the buyer breaches the contract and the seller has the goods, then the seller may be able to:
A. Cancel the contract
B. Withhold delivery of undelivered goods
C. Resell the goods covered by the contract and recover damages from the buyer
D. Each one of the above choices is an option
D. Each one of the above choices is an option
True or False. A requirements contract obligates a buyer to purchase all of the output (production, manufactured goods) of a particular seller.
False.
•An output contract obligates a buyer to purchase all of the output (production, manufactured goods) of a particular seller.
•A requirements contract obligates a seller to provide all the requirements for a buyer’s production.
What are the common law elements of a contract?
Agreement (offer and acceptance)
Consideration (bargained-for-exchange and legally sufficient value)
Capacity (minor, intoxication, mental competence)
Legality
Caveat emptor means ___________.
A. Seller beware
B. Buyer beware
C. Terms are final
D. Price is open
B. Buyer beware
The prior rule was caveat emptor (buyer beware), but this has shifted over the past century to caveat venditor (let seller beware) since sellers are better able than consumers to bear costs of defective products.
If assurances are not given within a reasonable time (_____ days), then the contract is considered repudiated.
A. 10
B. 20
C. 30
D. 90
C. 30
If assurances are not given within a reasonable time (30 days), then the contract is considered repudiated. [2-609].
Statute of Limitations: A lawsuit for breach of a sales contract must be filed within _______ years after the breach occurs.
A. three
B. four
C. five
D. six
B. four
Tort theories are based on arguments of _________.
A. Negligence
B. Express warranty
C. Implied warranty
D. None of the above
A. Negligence
Tort theories are based on arguments of negligence or strict liability.