LENB 3135 Chapter 12: Sales and Lease Law Exam Study Guide Solutions

LENB 3135 Chapter 12: Sales and Lease Law Exam Study Guide Solutions Conforming Goods - ANSWER-Goods that conform to the contract specifications Cover - ANSWER-A buyer or lessee's purchase on the open market of goods to substitute for those promised but never delivered by the seller Cure - ANSWER-The right of a party who tenders nonconforming performance to correct his or her performance within the contract period Express Warranty - ANSWER-A seller's or lessor's oral or written promise, ancillary to an underlying sales or lease agreement, as to the quality, description, or performance of the goods being sold or leased Firm Offer - ANSWER-An offer (by a merchant) that is irrevocable without consideration for a period of time (not longer than three months) - by a merchant must be in writing and must be signed by the offerer Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/15 Implied Warranty - ANSWER-A warranty that the law derives by inference from the nature of the transaction or the relative situations or circumstances of the parties Implied Warranty of Fitness for a Particular Purpose - ANSWER-A warranty that goods sold or leased are fit for the particular purpose for which a buyer or lessee will use the goods Implied Warranty of Merchantability - ANSWER-A warranty that goods being sold or leased are reasonably fit for their ordinary purpose, are properly packaged and labeled, and are of fair quality Intangible Property - ANSWER-Property that cannot be seen or touched but exists only conceptually, such as corporate stocks and bonds. Article 2 of the Uniform Commercial Code does not govern this Merchant - ANSWER-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 specific to the practices or goods being purchased or sold Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/15 Perfect Tender Rule - ANSWER-A rule under which a seller must deliver to the buyer goods that conform perfectly to the requirements stipulated in the sales contract. A tender of nonconforming goods automatically constitutes a breach of contract Predominant-Factor Test - ANSWER-A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services Sale - ANSWER-The passing of title to property from the seller to the buyer for a price Sales Contract - ANSWER-A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price Tangible Property - ANSWER-Property that has p