Exam 14: The Formation of Sales and Lease Contracts

In most situations involving sales,rights and liabilities are determined by who has the title to the goods.

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract.When textile costs increase,Brand agrees to a price increase,but later wants to cancel the con-tract.Brand may

A course of performance is the conduct that occurs under the terms of a particular agreement.

Fay pays $800 for a new iPad to Global Goods,Inc.Global holds the iPad until Fay picks it up.Global is

Identification,risk of loss,and insurable interest are all concepts that are involved in determining the rights and liabilities of parties to a contract.

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

In the following situations,two parties claim the same goods.Who is most likely to prevail in each circumstance? Explain.(a) Olan steals Phil's television set and sells it to Quincy,an innocent purchaser,for value.Phil learns Quincy has the set and demands its return.(b) Riley takes his television set for repair to Slick,a merchant who sells new and used television sets.By accident,one of Slick's employees sells the set to Tuna,an innocent purchaser-customer,who takes possession.Riley wants his set back from Tuna.

Big Beef,Inc.raises calves to sell.Big Beef breeds its cows in April,and the cows calve in February of the following year.In January Andrea contracts with Big Beef to buy fifty calves.Identification takes place in

Under the UCC,an agreement modifying a contract needs no considera-tion to be binding.

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Southern Distribution,Inc.,signs a receipt for goods that will also serve as a contract for the goods' transport. This is

For an item to be characterized as a "good" under the UCC,it must be intangible.