Gen Bus 301 Final Exam Verified And Accurate For Guaranteed Pass| Graded A+.

bailment law - correct answer decides who is liable for loss or damage to personal property that we deliver to another for some purpose (without transferring title) bailment - correct answer -transfer of control of personal property -to bailee from bailor (title or not) -pursuant to an agreement (may have contract or not) -with the property to be returned to bailor or whom bailor directs after purpose of bailment is met bailment is not - correct answer a sale what defines standard of care to be exercised by bailee - correct answer purpose of bailment relationship 3 situations with level of care in bailment - correct answer 1. for bailor's sole benefit 2. for bailee's sole benefit 3. mutual benefit if standard of care not met with bailment - correct answer -if don't meet standard of care, bailee is liable to bailor if bailment is for bailor's sole benefit - correct answer low level of care required by bailee if bailment is for bailee's sole benefit - correct answer high level of care required of bailee if bailment is for mutual benefit - correct answer ordinary level of care required of bailee Is a bailee an insurer? - correct answer no, not strictly liable if property lost or stolen what is presumption if bailed property is damaged or lost - correct answer we assume bailee is liable, they can overcome that by showing they met the required standard of care Bailee vs. Bailor - correct answer bailee= holds control of property -bailor= original owner, one who is transferring to bailee When does bailee become absolutely/strictly liable for any loss to bailed property - correct answer -fails to insure property after agreeing to do so -deviates from purpose of bailment -delivers bailed property to wrong person Effect of exculpatory clauses on bailment - correct answer -look at if clause was part of agreement and brought to bailor's attention (if not, probable unenforceable) -not in favor and have typical public policy defenses at play documents of title - correct answer -created when goods are shipped by common carrier or stored in a public warehouse -evidence right to receive, hold, and dispose of document and goods it covers (shows ownership) Utility of documents of title - correct answer transfer of a document of title represents transfer of the goods without the necessity or inconvenience of the physical transfer of the goods themselves -paper that evidences contract 2 common types of documents of title and 2 common bailees - correct answer DOT--warehouse receipt and bill of lading bailees--common carrier and warehouse warehouse receipt - correct answer a receipt issued by one who is engaged in the business of storing goods for compensation -warehouser gives this DOT to seller who is storing goods bill of lading - correct answer issued by a common carrier on receipt of goods to be shipped -carrier gives DOT to seller when goods shipped with them Purposes served by a document of title - correct answer 1. Receipt for the goods 2. Evidence of the contract between bailor and bailee 3. Creates rights and obligations of the parties under Article 7 key words for if document of title is negotiable or not - correct answer -"to the order of xxxx" or "to bearer" -- then negotiable -all others are nonnegotiable ("deliver to xxx") how are negotiable documents of title transferred - correct answer by negotiation -transferring paper if process of negotiation 2 situations for negotiation of documents of title - correct answer -order form ("to the order of")-- negotiation requires endorsement (signature) and delivery -bearer form ("to bearer")-- negotiation only requires delivery what if document of title is nonnegotiable (how transferred?) - correct answer -transferred by assignment and assignee/buyer takes the DOT subject to defense and claims that may exist in chain of title what does negotiation do with documents of title (key advantage) - correct answer -transferee (person receiving it) gets DOT free and clear of defenses that may have been available against transferor what does transferee get by negotiation - correct answer 1. title to document 2. title to goods 3. direct obligation of the issuer to abide by document 4. all other rights from the document or Article 7 of UCC what if contract requires DOT, but silent to if negotiable or non negotiable - correct answer -then non negotiable identification of goods - correct answer takes place when specific goods are designated as the subject matter of a sales or lease contract -separates and put aside goods primary responsibility of buyer - correct answer accept and pay for goods primary responsibility of seller - correct answer -provide conforming goods -many other responsibilities are contract specific 3 key situations and what we are trying to understand - correct answer 1. no shipment, no warehouse 2. no shipment, goods in possession of 3rd party (bailment, warehouse) 3. goods are shipped with a common carrier -see when title and risk of loss passes from seller to buyer no shipment, no warehouse - correct answer most common situation -goods on the shelf no shipment, goods are in possession of 3rd party (warehouse) - correct answer -goods being sold without being moved -warehouse, friends house, etc. (bailment) -may involve delivery of document of title -when release goods? goods shipped with common carrier - correct answer -goods shipped via UPS what is seller's basic obligation - correct answer deliver conforming goods -doesn't mean move them always -deliver by tendering them how does seller deliver to the buyer - correct answer tender conforming goods -make available tender goods - correct answer make goods available Perfect tender rule (how breached) - correct answer -need perfect performance -non conforming because: goods do not conform or method of delivery does not conform 2 ways seller can breach contract with respect to performance - correct answer -goods do not conform to contract -method of delivery does not conform to the contract buyer's options if goods do not conform - correct answer -reject the whole -accept the whole -accept some, reject rest Ways to mitigate the harshness of the perfect tender rule - correct answer -parties agreement (agree don't need perfection) -installment contracts (look at whole) -cure rule under UCC (correct) installment contracts and perfect tender rule - correct answer -apply a materiality standard as a condition to buyer's right to reject -non conformity with respect to that installment must materially impact value of the entire contract parties agreement and perfect tender rule - correct answer agreement can provide a range of acceptable performance -negotiate for leeway cure by seller under UCC 2-508 - correct answer can correct earlier nonconforming delivery -can make conforming delivery if time left to perform -MUST GIVE NOTICE and cure in reasonable time -still make deadline -surprise rejections where time to perform is extended -must be surprise to seller, requires history of dealing where though deliveries were okay -deadline pushed what must to do cure non-conformity -- time left to perform - correct answer -MUST GIVE NOTICE and cure in reasonable time -still make deadline by delivering conforming goods what must to do cure non-conformity -- no time left to perform - correct answer -must be a surprise reject -requires a history of dealing where thought deliveries were good -deadline is extended what must seller do if they intended to cure (why?) - correct answer -give notice to buyer that they intend to cure, then cure by deadline