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sales product
BUS 205 chapter 12 sales and product liability
| Question | Answer |
|---|---|
| How was commercial law developed? | in 1952, the Uniform Commercial code was published by a group of scholars with a goal to draft a modern law of commerce |
| UCC | Uniform Commercial Code |
| Article 2 | applies to the sale of goods, things that are movable (other than money and investment securities) |
| Article 2a | this article governs the leasing of goods |
| Merchants | someone who routinely deals in the particular goods involved, or who appears to have special knowledge or skill in those goods, or who uses agents w/ special knowledge or skill in those goods. (UCC holds a higher standard) |
| Formation Basics | 3 rules: 1. the parties may make a contract in any manner that sufficiently shows that they reached an agreement 2. knowing the moment of making the contract isn't critical 3. 1+ terms may be left open. |
| Statute of Frauds for sale of goods $500+ | writing sufficient to indicate a contract or signed by defendant, incorrect or omitted terms enforced by court, enforceable only to quality stated in writing |
| Merchant Exception of Oral contract | occurs when: one sends a confirming memo w/in reasonable time, and the memo is definite could be enforced against the sender, then the memo is also valid against the merchant who receives (unless objected in 10 days) |
| Added terms to UCC | if intended to accept and change or add terms to a contract, contract is valid |
| Different terms | these terms contradict terms in the offer and cancel each other out if there is no clear agreement the code supplies its own terms |
| additional terms | these terms raise issues not covered in the offer. they generally become part of the bargain |
| Buyer's Remedies | conforming goods satisfy the contract terms. the buyer has the right to inspect the goods before paying or accepting. may reject non-conforming goods, but seller has right to cure |
| Cover | a buyer's remedy that if the seller breaches, the buyer may cover by reasonably obtaining substitute goods. buyer may obtain difference b/w contract price and cover price plus incidental and consequential damages |
| Incidental and consequential damages | any injured buyer is generally entitled to these damages |
| Seller's Remedies | may stop or refuse delivery, may recover difference b/w resale price and contract price +incidential damages -expenses saved may recover if buyer has accepted goods,or goods conforming |
| Product Liability | when goods cause injury. three issues. 1. warranty-a contractural assurance goods will meet standards 2. negligence- unreasonable conduct by the defendant strict liability- policy which holds defendant liable |
| Express Warranty | seller creates this warranty with words/actions, affirmation of fact, description of goods, or sample/model |
| Implied Warranties | created by code itself. goods shall be merchantable, |
| Fitness for a Particular Purpose | seller knows particular purpose for which buyer wants goods, implied warranty that the goods shall be fit for such purpose |
| Negligence | cases: design, manufacture, or failure to warn, no remedy if disclaimers/or remedy limitations included |
| Strict Liability | imposed if: defective condition is dangerous, seller is in the business, the product reaches user w/o change, even if seller exercised care,and there is no contract |
| Contemporary Trends | to measure design and warning: consumer expectations, and risk-utility tests |
Created by:
rburciag
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