buisness law milestone 2.docx - 1 The Uniform Commercial...

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1 The Uniform Commercial Code (UCC) is the primary source of law for contracts regarding __________. the sale or lease of goods only the sale of goods, services, and real estate the sale of goods and services the sale of goods and real estate CONCEPT Sources of Contract Law 2 Select the statement that is true of consumer law prior to the 20th century. It was more important than it is now, because consumer products were less sophisticated. It incorporated the concepts of express and implied warranties. The burden of responsibility generally rested on the buyer. It forced sellers to take financial responsibility for any defects in products they sold. CONCEPT Products Liability 3 Andy is driving a 20-year-old boat that he borrowed from a friend. While he's on the water, the steering system fails and the boat crashes. Subsequent investigation shows that the steering system failed as a result of corrosion. Andy sues the boat manufacturer for negligence.
How strong is his negligence case against the product manufacturer? Strong, because proximate cause between the corroded steering system and the crash is easy to establish. Strong, because there is no evidence that Andy's own actions contributed to the damages. Weak, because he does not have privity of contract, since he was borrowing his friend's boat. Weak, unless he can show that the corrosion was the result of a design defect rather than normal wear and tear on a 20-year-old boat. CONCEPT Negligent Products Liability 4 In which scenario would strict liability most likely apply? The ceiling of a city hall crumbles and injures a few employees. An explosion at a chemical plant injures several workers. A deck collapses at a restaurant, injuring two diners. A fire at a grocery store injures several customers. CONCEPT Strict Liability 5 Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. After Juan ships the shirts, Cynthia calls him to inform him of her insolvency. The box of shirts is currently in transit
and will be delivered by the postal service tomorrow. What remedy does Juan have in this scenario? Juan may recover the contracted price of the shirts from Cynthia, and then he may resell the shirts to another buyer with no restrictions. Juan may stop delivery of the box by the post service, upon which time he may pursue a variety of remedies to recover his damages. Juan may not stop delivery of the box by the postal service, but he may recover the funds owed to him by Cynthia. Juan has no recourse in this scenario, since Cynthia is insolvent. CONCEPT Seller's Remedies Under the Uniform Commercial Code 6 Last September, you and I discussed you cutting my lawn this summer for $50 per week. This June, you began cutting my lawn every week.

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