AAAABusiness Exam Notes #3

AAAABusiness Exam Notes #3 - Business Exam#3 Notes Chapter...

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Business Exam #3 Notes; Chapter 20- I. Intro / History of Article 2- purchase and sale of goods. A. UCC Defined- business conducted across state lines and it became obvious that the common law contract was not conducive to business. Screwing up commerce and business, who’s state laws to apply. Commission formed to work on writing a uniform body of law to govern everything. Consistent throughout the country. All states except for Louisiana have adopted the UCC. -Only deals with sale of GOODS. Does not deal with real property (real estate), services, or intangible property such as stocks and bonds. Thus is the subject matter of the dispute is goods, the UCC governs. If it is real estate or services, the common law applies. B. UCC requirements 1. Good faith- honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. 2. Commercial reasonableness- act in a way that makes sense financially for the business P.257, Outputs contract, uncertainty. II. Key Concepts A. Goods- tangible, an item of property must be tangible, and it must be movable. 1. Goods distinguished from real estate- land buildings on land, governed by common law 2. Goods distinguished from services- common law Fixture is a good that becomes attached to real estate, part of the real estate and go with the real estate. If service dominates, common law is used. B. Merchants- given maximum flexibility when dealing with other merchants. Merchant is someone who because of their training, education are considered to be experts in the goods, deal the goods. Merchant and non-merchant, merchant is held to a higher standard of fairness. Retailer, wholesaler, or a manufacturer is a merchant of the goods sold in the particular business. A merchant for one type of goods is not necessarily a merchant for one type of goods is not necessarily a merchant for another type.
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-Ex: a sporting goods retailer is a merchant when selling tennis rackets but not when selling a used computer. -Banks or universities could be merchants. -Ex: If a farmer who ordinarily does not run the farm hire a broker to purchase or sell livestock, the farmer is considered a merchant in the transaction. Under UCC entrusting goods to a merchant who deals in goods of the kind gives the merchant power to transfer all rights to a buyer in the ordinary course of business (a person who, in good faith and without knowledge that the sale violates the rights of a third party, buys in ordinary course from the merchant). C. Sale- the passing of title from the seller to the buyer for a price, may be payable in cash or other goods and services. 1. Offer- in general contract law, the moment a definite offer is met by an unqualified acceptance, a binding contract is formed. In commercial sales transactions, the verbal exchanges,
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AAAABusiness Exam Notes #3 - Business Exam#3 Notes Chapter...

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