Legal Concepts Review for Exam

This set of flashcards covers key concepts and definitions from the lecture regarding merchants, contracts, risk of loss, legal obligations, and different types of liability.

Who is considered a merchant?

A person who sells goods as part of their regular business operations.

What happens to a merchant's offer if it's written and signed?

The offer cannot be revoked for three months.

What is the quantity term in contracts?

No specific amount is defined in the contract; it must be filled in by the court.

What is one important rule about additional terms between non-merchants?

They are treated as a separate offer.

What is the Statute of Frauds regarding written confirmation?

Two merchants must reject the writing within 10 days to avoid an agreement.

Under what conditions does risk of loss pass from seller to buyer in a shipping contract (FOB seller's address)?

Risk of loss passes when goods leave the seller's premises.

What must happen for a non-merchant to assume risk of loss?

Risk of loss passes when the buyer can pick up the goods.

What is the difference between void title and voidable title?

Void title means the goods cannot be reclaimed; voidable title means the owner may reclaim the goods under certain conditions.

What is the effect of fraud on voidable title?

If goods are obtained through fraud, the owner may not always reclaim them.

What declaration can lead to a breach of the warranty of title?

Selling stolen goods.

What is the definition of commercial impracticability?

A seller can avoid contract obligations when performance is impractical due to unforeseen events.

How long is the statute of limitations to sue for a goods contract?

Four years.

What constitutes a breach of warranty of merchantability?

Goods sold that are not fit for ordinary purposes.

What case is pivotal for understanding negligence law?

McPherson v. Buick Motor Company.

What are the three legal theories in product liability?

Negligence, strict liability, and breach of warranty.

What is the 33 rule in product liability?

It refers to the three theories under which a product can be sued for liability.

What should a buyer do if they receive nonconforming goods?

They can reject them within 30 days.