Business Law 351

Business Law Chapter 16 Homework – Week 1

Pg. 316-344

QRD:

1- The law of sales applies to any contracts for the lease, or sale of goods from one party to another.

2-

Name 3 goods: Toothbrush, Shoes, Coca-Cola

Future good: I will be purchasing 5 bushels of corn on June. 1st 2012 from John Doe. – This is a future obligation to buy or sell a specific commodity.

3- When a contract includes both goods and services, the dominant elements of the contract determines whether it is a contract for goods, or a contract for services.

4- A contract for sale includes both a present sale of goods, and a contract to sell goods at a future date or time.

5- The three special rules for a sale of contract are Good Faith, Course of Dealings and Usage of Trade, and Formation of a Sales Contract. Good faith means that both sides to the contract need to deal in fairness to one another. A usage of trade helps simplify the obligations of the contract, especially if the two sides have made previous transactions. The formation of the sales contract includes listed details, signatures, and written acknowledgement from both sides willingly accepting their part of the contract.

6- An option contract usually has multiple choices for one or both parties involved in the contract. Therefore the party can choose different types of offers, and can possibly maneuver a better interest for themselves. A firm offer is a one-time offer, that will not adjust and cannot be negotiated. The offer is set in stone, and barring and unusual event will not move up or down in price.

7- A sales contract must be in writing if the sale of goods exceeds $500 dollars. A lease of goods must be in writing if the lease is for goods exceeding $1000 dollars.

8- The four exceptions are; Oral contracts in which the contract is expressed by one party and received but not objected to by the other party, specially manufactured goods, admissions in court, and executed contracts

9- The...