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Business Law · College

Business Law: UCC Sales Basics

Uniform Commercial Code Article 2 sale-of-goods basics, distinct from the bar exam's secured transactions coverage.

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Under UCC Article 2, what is a sale?
The passing of title from a seller to a buyer for a price
What does UCC Article 2 define as goods?
Things that are movable and identifiable at the time of contracting, excluding money and investment securities
Who qualifies as a merchant under UCC Article 2?
A person who deals in goods of that kind or otherwise represents by occupation that they have knowledge or skill in the practices involved
What is the scope of UCC Article 2?
It applies to transactions in goods, but excludes services and real property
What does the statute of frauds in UCC 2-201 require?
A contract for the sale of goods for a price of $500 or more must be in writing to be enforceable
When goods are accepted by a buyer, what effect does this have on the UCC 2-201 writing requirement?
The contract is enforceable even without a writing, to the extent of the goods accepted
Under UCC 2-201, what is the merchant's written confirmation exception?
A written confirmation between merchants is sufficient if not objected to within 10 days, even if the other merchant did not sign it
What is the battle of the forms under UCC 2-207?
The rule governing what happens when the acceptance contains terms different from or additional to those in the offer
Under UCC 2-207(2), when do additional terms in an acceptance become part of the contract?
When both parties are merchants, unless they materially alter the offer or the offer limits acceptance to its terms
If an acceptance expressly makes acceptance conditional on assent to additional terms, what is the result?
It is not an acceptance and instead constitutes a counteroffer
What role do course of dealing and trade usage play in UCC Article 2?
They interpret contract terms and fill gaps when the parties' agreement is otherwise silent or ambiguous
What is a gap filler in UCC Article 2?
A default rule supplied by the UCC when the parties have not agreed on a particular contract term
Under UCC 2-305, what happens if the parties omit the price from their sales contract?
A reasonable price at the time of delivery is imposed by the UCC
Can the quantity term be supplied by UCC gap-fillers if the parties do not agree on it?
No, quantity cannot be supplied by the UCC and must be agreed by the parties
What is the general rule for risk of loss in a sale of goods?
Risk of loss passes to the buyer when control of the goods passes to the buyer

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