Business

Ten things that you need to know about Chapters 10 and 11 for BLAW 3310

1. What does Article 2 of the Uniform Commercial Code cover?

Article 2 of the UCC covers contracts for the sale of goods.

2. What are goods covered under Article 2?

Goods are, tangible, movable property that have a physical existence and that can be moved from place to place. Services, real property, intangible property, intellectual property, and stocks and bonds are examples of things that are not covered.

3. What if a contract is for both goods and services, then does the UCC cover?

A court would use the predominant-factor test to decide. If the contract is predominantly for the sale of goods, then it would apply, if it was primarily for the sale of services then it would not. (ie You enter into a contract for a new air conditioner (a good). As part of the contract, the seller will install the air conditioning unit (a service). The court would probably rule that since the predominant factor of why the contract was entered into was to get a new air conditioner, the installation was ancillary to that and therefore the UCC would apply).

4.-6. What happens under the UCC if a term is left open in a contract? (Since this is a long question I will divide into parts and count as two things)

It depends on what term is left open (not included in the contract). According to common law, an offer must be definite enough for the parties to ascertain its essential terms. But under the U.C.C., many contract terms can be open.

a. Price Term- If not specified, payment is due at the time and the place that the buyer receives the goods and court can affix a reasonable price.

b. Delivery term- If not specified, the buyer will take delivery at the seller’s place of business. If not specified, the seller will deliver within a reasonable period of time.

c. Quantity term- Usually will invalidate contract unless if one of the two following types of contracts:...