Book 5.pdf - Book 5 Monday 6:51 PM 1 Distinguish between contracts that are governed by Article 2 of the Uniform Commercial Code and those that are

Book 5.pdf - Book 5 Monday 6:51 PM 1 Distinguish between...

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1. Distinguish between contracts that are governed by Article 2 of the Uniform Commercial Code and those that are governed by the common law. Article 2 UCC deals with the sales of goods and form the basis of the law of sale Does not apply to leases or bailments or temporary possession of goods. But rathe "the passing of title from seller to buyer for a price". Exception: barter transaction (trading of goods/services without exchange of money is in scope of article 2. Goods. 2 requirements must be met: 1) tangible, physical existence. So copyright trademark or contract is NOT. 2) movable (airplanes, toothpaste) but not real esta Contracts for sale of: Minerals or a structure: can only be from the land by the seller, not the buye Growing crops or timber: can be from anyone Anything else attached to real estate is sale of goods if without material harm to real estate Also unborn animals are goods, rare coins if not used as an exchange, things specially manufactures for the buyer are goods, food served in restaurants 2. Determine, in a hypothetical case, whether a person is acting as a merchant . Article 2 requires one or both parties to be merchants in order for sales contracts 3 ways to be a merchant. 1) deal in goods of the kind (retailers, wholesalers, manufactures are merchants). A party is a merchant for the goods regularly sold in their business, so isn't a merchant for all purposes. Ex: retail shoe seller is mercha for shoes, but not if he sold his lawn mower. 2) a person he does not "deal" goods still a merchant ex: building contractor uses good in performance of a service. 3) i party does not fall under 2 pervious categories, he is still treated as one by employing a merchant to act on his behalf for a transaction ex- Smith hires professional grain broker to buy large quantity feed for his cattle What all 3 categories have in common is access to commercial expertise tha is not available to the general public. UCC holds merchants to higher degree of "good faith" 3. Demonstrate an understanding of key provisions of Article 2 of the UCC. Leases. Article 2 does not address leasing of goods Article 2A's provisions resemble the common law of bailment for hires Lessee's remedies: parties set their own terms but a lease does not establish Book 5 Monday, January 14, 2019 6:51 PM
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  • Spring '14
  • PEDERSEN,FRANCESA
  • Contract Law, Implied warranty

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