BL202 Ch. 18

Uniform Commercial Code

Model act that includes comprehensive laws that cover most aspects of commercial transactions. All the states have enacted all or part of the UCC as statutes.

Article 2

Article of the UCC that governs the sale of goods.

Sale of Goods

The passing of title of goods from a seller to a buyer for a price.

Goods

Tangible items that are movable at the time of their identification to a contract.

Mixed Sale

A sale that involves the provision of a service and a good in the same transaction.

Merchant

Person who deals in goods of the kind involved in a transaction

Gap-Filling Rule

A rule stating that an open term can be 'read into' a contract. If no price is listed, a reasonable price is assumed, until further negotiations.

Firm Offer Rule

A UCC rule stating that a merchant who 1. makes an offer to buy, sell, or lease goods and 2. assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time.

Accommodation

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be fulfilled.

UCC Statute of Frauds

Rule in the UCC that requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1000 or more to be in writing.

Parol Evidence Rule

A rule stating that if a written contract is complete and final, any prior oral or written statements which alter, contradict, or ad to the terms are inadmissable in a court regarding any disputes.