LSB 4323 Exam 1.docx

sale - correct answer the passing of title (evidence of ownership rights) from a seller to a buyer for a price tangible property - correct answer property that has physical existence- that is, it can be touched or seen and is movable intangible property - correct answer property that has only conceptual existence and does not come under Article 2; includes corporate stocks and bonds, patents and copyrights, and ordinary contract rights predominant-factor test - correct answer a test used to determine whether a contract is primarily for the sale of goods or for the sale of services; if a mixed contract is primarily a goods contract, any dispute, even one over the services portion, will be decided under the UCC merchant - correct answer a person who, when he or she is acting in a mercantile capacity, possesses or uses an expertise specifically related to the goods being sold lease agreement - correct answer an agreement containing a lessor's and lessee's bargain with respect to the lease of goods, as found in their language or implied by other circumstances; outlined in Article 2A lessor - correct answer one who transfers the right to the possession and use of goods under a lease lessee - correct answer one who acquires the right to the possession and use of goods under a lease 3 elements of a consumer lease - correct answer 1) a lessor who regularly engages in the business of leasing or selling 2) a lessee (except an organization) who leases the goods "primarily for a personal, family, or household purpose" 3) total lease payments that are less than $25,000 (all components must be present) requirements contract - correct answer a contract in which the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer requires output contract - correct answer a contract in which the seller agrees to sell and the buyer agrees to buy all or up to a stated amount of what the seller produces firm offer - correct answer an offer that arises when a merchant-offeror gives assurances in a signed writing that the offer will remain open' this offer is irrevocable without the necessity of consideration for the stated period, or, if no definite period is stated, a reasonable period of up to 3 months; offer must be written and signed by offeror to be valid seasonably - correct answer within a reasonable amount of time exceptions to the Statute of Frauds - correct answer 1) if the goods are specially manufactured for a particular buyer 2) if the goods are not suitable for resale or lease to others 3/ if the seller has substantially started to manufacture the goods or has made commitments for the manufacture or procurement of the goods fully integrated contract - correct answer a contract completely setting forth the terms and conditions agreed to by the parties and intended as a final statement of their agreement. such that its terms cannot be contradicted by evidence of any prior agreements or contemporaneous oral agreements course of dealing - correct answer sequence of actions and communications between the parties to a particular transaction that establishes a common basis for their understanding usage of trade - correct answer accepted practices within a place, vocation, or trade that would be expected to be conformed to in contracts regarding that particular industry course of performance - correct answer the conduct that occurs under the terms of a particular agreement choice-of-language clause - correct answer clause within a contract that designates the official language by which the contract will be interpreted in the event of disagreement forum-selection clause - correct answer clause within a contract designating the forum in which any disputes that arise under the contract will be litigated choice-of-law clause - correct answer a contractual provision designating the applicable law; included in international contracts to designate which country's standards will reign force majeure clause - correct answer clauses stipulating that events such as "an act of God" will excuse liability for non-performance sales contract - correct answer contract for the sale of goods identification - correct answer the designation of specific goods as the subject matter of a sales or lease contract fungible goods - correct answer goods that are alike naturally, by agreement, or by trade usage; specific grades or types of wheat, petroleum, and cooking oil which are typically stored in large containers shipment contract - correct answer a contract in which the seller is required or authorized to ship goods by carrier, such