bu206w7scripts

bu206w7scripts - BU206 Week 7 Scripts S2 Article 2 of the...

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BU206 Week 7 Scripts S2 Article 2 of the UCC (Uniform Commercial Code) covers only sales of tangible goods; it does not cover services nor sales of intangibles (like stock) nor sales of land. It does cover things on real estate that can be moved (like furniture); it also covers growing crops and minerals if the owner of the land separates the minerals (or mineral rights) and sells them. If the sale includes part sale and part service, it is classified according to whichever is dominant. For example, if you hire a painter, the price includes the cost of the paint (good) and the labor of painting your house (service). If the cost of the paint exceeded the cost of the painting itself, the sale would be dominant and it would be classified as a sale; if the cost of the painting exceeds the cost of the paint, then the service is dominant and it would be classified as a service. S3 A merchant is a professional seller; a department store is a merchant. If Joe just sells his coat to Fred, Joe is not a merchant. The reason that the distinction between a merchant and a non-merchant is important is that there is a higher standard of care placed on a merchant in a sale than a non-merchant. And the reason is because the merchant is a professional. S4 A lease is essentially borrowing goods for a specific period of time. Be sure to distinguish between the lessor (the lender, or in the case of real property, the landlord) and the lessee (the borrower or the tenant). A consumer lease is a lease of household goods for a price below a certain dollar amount; The importance of classifying a lease as a consumer lease is that certain consumer protection laws apply to a consumer lease. A finance lease is where the lessor acts as a middle-man between the supplier/manufacturer and the lessee who uses the goods. S5 In many cases, the presence of indefinite terms will often not vitiate a sales contract (i.e. a sales contract is still a contract, despite some indefinite terms). This includes an indefinite price- a court can determine a price. However, if the quantity is not specified, there is no contract because a court has no basis on which to determine damages. An exception to this would be a requirements contract (buyer agrees to purchase all of the quantity that he needs from the seller) or an output contract (buyer agrees to purchase all of the output that a seller can produce). S6
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bu206w7scripts - BU206 Week 7 Scripts S2 Article 2 of the...

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