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CH. 18 – Introduction to Sales

1. What is a merchant under UCC Article 2? 252
A merchant is someone who routinely deals in the particular goods involved. The UCC frequently holds a merchant to a higher standard of conduct than a non-merchant. 2. What are the rules for different terms under Sec. 2-207? 256 If there is no clear oral agreement, the Code supplies its own terms, called gap fillers, which cover prices, delivery dates and places, warranties, etc. 3. What situations are covered by UCC Article? 251-252

Article 2 applies to the sale of goods.
Mixed Contracts. In a mixed contract involving sales and services, the UCC will govern if the predominant purpose is the sale. Merchants. A merchant is someone who routinely deals in the particular goods involved. The UCC frequently holds a merchant to a higher standard of conduct than a non-merchant. Good Faith. The UCC imposes a duty of good faith in the performance of all contracts. For a merchant, good faith means honesty in fact plus the exercise of reasonable commercial standards of fair dealing. Unconscionability. A contract may be unconscionable if it is shockingly one-sided and fundamentally unfair. 4. Which contracts require a writing under UCC Article? 255

Requires a writing for any sale of goods worth $500 or more. 5. Under Sec. 2 – 2007 what happens to terms which are different? 256 These are terms that contradict those in the offer.
Different terms cancel each other out.

CH. 20 – Warranties and Product Liability
1. Under the Warranty of Fitness for a Particular Purpose, what two things must a seller know about a buyer? 280 Where the seller at the time of contracting knows about a particular purpose for which the buyer wants the goods, and knows that the buyer is relying on the seller’s skill or judgment, there is an implied warranty that the goods shall be fit for such purpose. 2. Does the phrase “AS IS” mean a seller has disclaimed all implied warranties? 281 The Code permits a seller to...
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