BLAW Final Exam UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
Offer and Acceptance - CORRECT ANSWERS 1. the acceptance of
unilateral offers can be made by a promise to ship or by shipment itself.
2. not all terms have to be included for a contract to result.
3. particulars of performance can be left open.
4. Firm written offers made by a MERCHANT, the duration of which is 3
months or less, cannot be revoked.
5. Acceptance by performance requires notice within a reasonable time;
otherwise, the offer can be treated as lapsed.
6. The price does not have to be included to have a contract.
7. variations in terms between the offer and the acceptance may not be a
rejection but may be an acceptance.
8. acceptance may be made by any reasonable means of communication; it is
effective when dispatched.
Consideration - CORRECT ANSWERS A modification of a contract for
the sale of goods does not require consideration.
Requirement under the Statute of Frauds - CORRECT ANSWERS 1. all
contracts for the sale of goods priced at $500 or more must be in writing.
2. exceptions:
a. when written confirmation of an oral contract between merchants is not
objected to in writing by the receiver within 10 days.
b. when the oral contract is for specially manufactured goods not suitable for
resale to others, and the seller has substantially started to manufacture the
goods.
c. when the defendant admits in pleadings, testimony, or other court proceedings
that an oral contract for the sale of goods was made. In this case the contract
will be enforceable to the quantity of goods admitted.
,d. when payment has been made and accepted under the terms of an oral
contract. The oral agreement will be enforceable to the extent that goods have
been received and accepted.
When is a writing sufficient? - CORRECT ANSWERS as long as it
indicates a contract between the parties and it is signed by the party against
whom enforcement is sought. A contract is not enforceable beyond the quantity
shown in the writing
Patrol Evidence - CORRECT ANSWERS 1. The terms of a clearly and
completely worded written contract cannot be contradicted by oral or other
evidence.
2. Patrol evidence is admissible to clarify the terms of a writing:a. if the contract
terms are ambiguous.
b. if the evidence of course of dealing, usage of trade, or course of performance
is necessary to learn or to clarify the intentions of the parties to the contract.
Unconscionability - CORRECT ANSWERS an unconscionable contract
is one that is so unfair and one sided that it would be unreasonable to enforce it.
if the court deems a contract to be unconscionable at the time it was made, the
court can 1) refuse to enforce the contract; 2) refuse to enforce the
unconscionable clause of the contract; or 3) limit the application of any
unconscionable clauses to avoid an unconscionable result.
How is an Express Warranty created? - CORRECT ANSWERS as a part
of a sale or bargain, a seller may create an express warranty by -
1. an affirmation of fact or promise.
2. a sale by description.
3. a sample shown as conforming to bulk.
, Possible defenses of an Express warranty - CORRECT ANSWERS 1.
statement that is purported to create warranty was an option.2. specific language
or conduct negated or limited warranty.
How is an Implied warranty of merchantability created? - CORRECT
ANSWERS The warranty arises when the seller is a merchant who deals
in goods of the kind sold.
Possible defenses of an implied warranty of merchantability - CORRECT
ANSWERS 1. warranty was specifically disclaimed (disclaimer can be
oral or in writing but must mention merchantability and must be conspicuous).
2. sale was stated to be "as is" or "with all faults".
3. The buyer examined the goods and is therefore bound by all defects that were
found or should have been found. If the buyer refused or failed to examine, the
buyer is bound by obvious defects.
4. course of dealing, performance, or usage of trade.
Possible defenses or lan implied warranty of fitness for a particular purpose -
CORRECT ANSWERS 1. specific disclaimer excluded or modified
warranty (disclaimer must be in writing and be conspicuous. "there are no
warranties which extend beyond the description on the face hereof.")
2. sale was stated to be "as is" or "with all faults".
3. The buyer examined the goods and is therefore bound by all defects that were
found or should have been found. If the buyer refused or failed to examine, the
buyer is bound by obvious defects.
4. course of dealing, performance, or usage of trade.
Possible defenses of an implied warranty arising from course of dealing or trade
usage - CORRECT ANSWERS 1. warranty was excluded by specific
language or as provided under UCC 2-316.
QUESTIONS AND CORRECT ANSWERS
Offer and Acceptance - CORRECT ANSWERS 1. the acceptance of
unilateral offers can be made by a promise to ship or by shipment itself.
2. not all terms have to be included for a contract to result.
3. particulars of performance can be left open.
4. Firm written offers made by a MERCHANT, the duration of which is 3
months or less, cannot be revoked.
5. Acceptance by performance requires notice within a reasonable time;
otherwise, the offer can be treated as lapsed.
6. The price does not have to be included to have a contract.
7. variations in terms between the offer and the acceptance may not be a
rejection but may be an acceptance.
8. acceptance may be made by any reasonable means of communication; it is
effective when dispatched.
Consideration - CORRECT ANSWERS A modification of a contract for
the sale of goods does not require consideration.
Requirement under the Statute of Frauds - CORRECT ANSWERS 1. all
contracts for the sale of goods priced at $500 or more must be in writing.
2. exceptions:
a. when written confirmation of an oral contract between merchants is not
objected to in writing by the receiver within 10 days.
b. when the oral contract is for specially manufactured goods not suitable for
resale to others, and the seller has substantially started to manufacture the
goods.
c. when the defendant admits in pleadings, testimony, or other court proceedings
that an oral contract for the sale of goods was made. In this case the contract
will be enforceable to the quantity of goods admitted.
,d. when payment has been made and accepted under the terms of an oral
contract. The oral agreement will be enforceable to the extent that goods have
been received and accepted.
When is a writing sufficient? - CORRECT ANSWERS as long as it
indicates a contract between the parties and it is signed by the party against
whom enforcement is sought. A contract is not enforceable beyond the quantity
shown in the writing
Patrol Evidence - CORRECT ANSWERS 1. The terms of a clearly and
completely worded written contract cannot be contradicted by oral or other
evidence.
2. Patrol evidence is admissible to clarify the terms of a writing:a. if the contract
terms are ambiguous.
b. if the evidence of course of dealing, usage of trade, or course of performance
is necessary to learn or to clarify the intentions of the parties to the contract.
Unconscionability - CORRECT ANSWERS an unconscionable contract
is one that is so unfair and one sided that it would be unreasonable to enforce it.
if the court deems a contract to be unconscionable at the time it was made, the
court can 1) refuse to enforce the contract; 2) refuse to enforce the
unconscionable clause of the contract; or 3) limit the application of any
unconscionable clauses to avoid an unconscionable result.
How is an Express Warranty created? - CORRECT ANSWERS as a part
of a sale or bargain, a seller may create an express warranty by -
1. an affirmation of fact or promise.
2. a sale by description.
3. a sample shown as conforming to bulk.
, Possible defenses of an Express warranty - CORRECT ANSWERS 1.
statement that is purported to create warranty was an option.2. specific language
or conduct negated or limited warranty.
How is an Implied warranty of merchantability created? - CORRECT
ANSWERS The warranty arises when the seller is a merchant who deals
in goods of the kind sold.
Possible defenses of an implied warranty of merchantability - CORRECT
ANSWERS 1. warranty was specifically disclaimed (disclaimer can be
oral or in writing but must mention merchantability and must be conspicuous).
2. sale was stated to be "as is" or "with all faults".
3. The buyer examined the goods and is therefore bound by all defects that were
found or should have been found. If the buyer refused or failed to examine, the
buyer is bound by obvious defects.
4. course of dealing, performance, or usage of trade.
Possible defenses or lan implied warranty of fitness for a particular purpose -
CORRECT ANSWERS 1. specific disclaimer excluded or modified
warranty (disclaimer must be in writing and be conspicuous. "there are no
warranties which extend beyond the description on the face hereof.")
2. sale was stated to be "as is" or "with all faults".
3. The buyer examined the goods and is therefore bound by all defects that were
found or should have been found. If the buyer refused or failed to examine, the
buyer is bound by obvious defects.
4. course of dealing, performance, or usage of trade.
Possible defenses of an implied warranty arising from course of dealing or trade
usage - CORRECT ANSWERS 1. warranty was excluded by specific
language or as provided under UCC 2-316.
