Chapter 11 & 12: Domestic and International Sales / Business Organizations

Flashcards created to aid in studying key concepts from Chapters 11 and 12 regarding domestic and international sales, and business organizations.

UCC

Uniform Commercial Code, a set of laws governing commercial transactions.

Goods

Items that are movable at the time of identification to the contract for sale under Article 2 of the UCC.

Product Liability

The legal responsibility of a manufacturer or seller for producing or selling a faulty product.

Title Transfer

The legal process of transferring ownership of goods from the seller to the buyer.

Express Terms

Specific terms clearly stated in a contract that detail the obligations of the parties.

Implied Warranty of Merchantability

Guarantee that goods sold by a merchant meet a standard of quality acceptable in the industry.

Warranty Disclaimer

A statement that a seller does not assume any responsibility for the quality or performance of a product.

Incidental Damages

Minor damages that occur as a result of a breach of contract.

Sole Proprietorship

A business owned and operated by a single individual, where income is taxed to the owner.

Acceptance of Offer

Agreement to the terms of an offer, which can be done by actions under the UCC.

Inspection Rights

A buyer's right to inspect goods before accepting them.

Revocation of Acceptance

The buyer's right to reject goods after acceptance due to impairment of value.

Contract Formation

The establishment of a legally binding agreement between parties, which can occur even without all express terms.

Significant Change in Contract

Modifications agreed upon by parties that do not require new consideration for a UCC contract.

Erie Ins. Co. v. Amazon.Com, Inc.

A case ruling that distributors are not liable for product defects if they do not sell the product directly.

Villabos v. Atlanta Motorsports, LLC

A case allowing a buyer to prove revocation of goods acceptance based on value impairment.

Lee v. R&K Marine

A case discussing the limitations of warranty disclaimers.