M354 Chapters 41,25,23,27,33,28,29,31

M354 Chapters 41,25,23,27,33,28,29,31 - Chapter 41 Types of...

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Unformatted text preview: Chapter 41, Types of Business Organizations Sole or Individual Proprietorships —. page 964 Partnerships — page 964 Corporations — page 965 Joint Ventures — pages 965 & 966 Unincorporated Associations —‘ page 966 Cooperatives — page 967 ' Franchise - pages 968-970 Chapter 25 Theories of Recovery! ' - Guarantee 0 Express Warranty - Implied Warranty of Merchantability - Implied Warranty of Fitness for a Particular Purpose ° Negligence - Strict Liability 0 Fraud ° Contract _ Warranty LawI Chapter 25 Theories of Recovery Privity of Contract - The parties to a contract are said to stand in privity with each other and the relationship between them is termed privity of contract. So, privity is succession or chain or relationship to the same thing or right such as privity of contract, privity of estate, privity of possession. Guarantee— We hear it on TV all the time such as, we guarantee this item. Or sometimes you buy items such as from Sears, where you have a lifetime guarantee for a particular item. All they are saying is that you have a contract with a particular party so in this instance we have privity of contract and they might say that what you bought is to your personal satisfaction, otherwise they can always specify what they guarantee, such as if it breaks they will replace it, repair it, or provide your money back. So, all a guarantee is, nothing but contract law and maybe some addition to it or maybe not (sometimes you can have maybe double your money back guarantee.) Warranties~ With warranties you have to have a contract. We are talking about UCC { Uniform Commercial Code) with regards to warranties. So, the VERYlMPORTANTsteps are: 0 First Step - You have to have a contract {privity of contract) 0 Second Step - it has to be the sale of goods. 0 The third step is you determine whether it is one or more of these: 0 Express Warranty 0 implied Warranty of Merchan tability o implied Warranty of Fitness for a Particular Purpose. With warranties the idea is - it is going to be fixed, replaced or repaired or your money back, but that is the seller’s option and they can decide whether they want to fix it or replace it or provide you the money back. You as the buyer don’t have that option. it goes beyond that because they are liable for the injury or damage (under warranty law) that’s caused. 50, warranty law has contract principles that extends it beyond that — so you have a contract, sale of goods and the item and the damage it causes becomes something that is protected. Warranty law takes contract law and negligence and product liability and puts them all together and provides that benefit in one and goes a step further. How? With negotiations, if you enter into negotiations to purchase something, so whatever you talked before {as long as you don’t disclaim that} becomes part of the contract and those negotiations at the time you enter into the contract are part of that contract. 50, all this applies in warranty law, but you also have past sales protection under warranty law i.e. if they tell you something after the sale, that the product will do, then they become liable for that too. So, guarantee doesn’t have past sales, but warrantee does have past sales protection. Express warranty -- could be verbal, in writing, or by the conduct of the parties. 1 i < i l 1 i i ; implied Warranty of Merchantability - The goods are fit for the ordinary purposes for which they are said. This warranty, unless disclaimed, is given in every sale of goods by a merchant. it says — sale of goods, unless there is a disclaimer, we are entitled to have the particular good do what it is ordinarily fit to do, if we buy it from a merchant i. e. you get this implied warranty of merchantability that it should fit its ordinary purpose. So, the ordinary purpose becomes important. implied Warranty of Fitness for a Particular Purpose. - in order to have this protection, you also need to have express warranty. Example --- The seller at the time of the contract has reason to know any particular use of the goods are required and the buyer is relying on the seller and so if it isn’t suitable then seller is liable for the damages. When the buyer makes the purchase without relying on the seller’s skill and judgment, no warranty of fitness for a particular purpose arises. So, a buyer may intend to use the goods for a particular or unusual purpose, as contrasted with the ordinary use for which they are customarily sold. if the seller states that the goods will be fit for the buyer’s purpose with the buyer relying on the seller’s skill or judgment to select or furnish suitable goods and the seller at the time of contracting, knows or has reason to know of both the buyer’s particular purpose and the buyer’s reliance on the seller’s judgment, then the seller has created an implied warranty of fitness for a particular purpose. in case of warranty you are expected to do reasonable inspection before you buy something otherwise you have no protection under warranty i.e. otherwise you lose the warranty protection Sale ofsecondhand or used good - Under the UCC, there is a warranty of merchantability in the sale of both new and used goods unless it is specifically disclaimed. However with used goods, "fit for normal use” would be of lower standard. Some courts/sovereign considers no warranties of fitness in the sale of used goods. Chapter 23, Nature and Form of Sales UCC —- Article 2 — Appendix 3, Starting A-15 Goods - page 504 Bailments — page 505 Gift — page 505 0 Contract for Services — page 505 Contract for Goods & Services — page 505 Merchants & Non—merchants — page 507 Offer — page 507 V __ Acceptance — page 508 — Mailbox Rule — page 509 Unconscionable w page 512 Output & Requirements Contract — page 513 Course of Dealing & Usage of Trade — page 514 Statute of Frauds — page 515 Specialty Manufactured Goods — page 518 Chapter 27 Remedies for Breach of Sales Contracts Breach of Sales Contract — 4 years ~H page 599 Overhead - Arizona -— 6, Iowa —- 5, Louisiana — 1, Oklahoma — 5, South Carolina — 6, Wisconsin — 6. Sellers Lien — page 600 Damages — page 601 Secured Transaction — page 602 Cover — page 604 V Breach of Warranty — page 604 &- 605 Specific Performance —— page 607 Liquidated Damages -—~ page 608 Consumer Protection, Chapter 33 What is Consumer Protection? Some states, 3 times damages — More protection than under Contract law. Some consumer protection statutes do NOT apply when a buyer'is purchasing goods for Resale! False Advertising w False, Deceptive & Fraudulent FTC —_Corrective Advertising — Retractive Advertising Actions also by ‘State Attorney Generals Office on our behalf. Sign Without reading — You are bound —- Liable The Motor Vehicle Information and Cost Savings Act. Page 745, Home Solicited Sales — Phone Call is NOT, can hang up 1. Home solicited sales; 2. $25 or more of Goods or Services; 3. Three business days to Rescind. Page 749-750, Credit Cards — Liability $50 if notified in 60 days. How many cardsdo you have? Credit card surcharge — is illegal, cash discount is not. . Authorized Usage — Just like business person — Expense account. Debit Cards -- $50 —— Contract Unsolicited credit card — Prohibited Fair Debt Collection Practices Act, page 753—754. ——Call at reasonable hours, (not employer, not send letter to place of business) — Why? Fired Truth in Lending — Merchant — 4 or more (show cost of credit m» car, home) Automobile Lemon Laws, page 758 — brand—new replacement. . Chapters 28, 29, &31 Chapter 28 — read pages 622-624 & 633 Chapter 29 — read pages 644-648 7 Chapter 31 —— read pages 687-690, 694—699 ...
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M354 Chapters 41,25,23,27,33,28,29,31 - Chapter 41 Types of...

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