Test 4 review - Test 4 review 1. The general purpose of the...

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Test 4 review 1. The general purpose of the UCC or the Uniform Commercial Code is model act that contains uniform rules that govern commercial transactions. 2. Article 2 of the UCC covers sales transactions, and Article 2A covers lease transactions. 3. The UCC applies to a mixed sale (a sale involves both the provision of a service and a good in the same transaction) when the goods are the dominate part of the transaction. 4. Article 2 of the UCC applies to all sales contracts, whether they involve merchants or not. However, Article 2 contains several provisions that either apply only to merchants or impose a greater duty on merchants. 5. If the parties to a sales contract do not agree to the time, place, and manner of delivery of the goods, the place for delivery is the seller’s place of business. If the seller does not have a place of business, delivery is to be made at the seller’s residence. This is considered Open Delivery term. 6. Under Open Price term, yes a contract can be formed if the price terms are omitted; only if a “reasonable price” is implied at the time of delivery. When one of the parties fails to fix an open price term, the other party may opt either (1) to treat the contract as canceled or (2) to fix a reasonable price for the goods. 7. An Open Delivery term is when the parties to a sales contract do not agree to the time, place, and manner of delivery of the goods, the place for delivery is the seller’s place of business. If the seller does not have a place of business, delivery is to be made at the seller’s residence. 8. The UCC permits acceptance by any reasonable manner or method of communication. For example, as soon as the acceptance is sent the offer is accepted even if the letter is lost by the post office. 9. If an order or other offer to buy goods requires prompt or current shipment, the offer is accepted if the seller (1) promptly promises to ship the goods or (2) promptly ships either conforming or nonconforming goods. The shipment of conforming goods signals acceptance of the buyer’s offer. Acceptance of goods occurs after the buyer or lessee has a reasonable opportunity to inspect them and signifies that (1) the goods are conforming,
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This note was uploaded on 07/25/2011 for the course BUSI 2301 taught by Professor Qui during the Winter '10 term at San Jacinto.

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Test 4 review - Test 4 review 1. The general purpose of the...

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