Business Law Exam # 3
drawee - ANS -entity that is expected to accept and pay a bill of exchange (check, letter of
credit, etc.) on presentation or on a certain date (called due date or maturity date)
offeror - ANS -person or corp. who puts forward an offer to someone else to make a contract
offeree - ANS -person or corp. to whom an offer is make to make a contract
Convention on Contracts for the Int'l Sale of Goods(CISG) - ANS -Takes priority over the UCC
(state law); only applies to goods in commercial sales (betw. merchants)
Where are the primary sources of int'l law found? - ANS -treaties
treaties - ANS -contracts betw. our gov't and that of another entered by the president and
approved by 2/3 of the senate.
A treaty is the same as a(n)... - ANS -convention
Uniform Commercial Code (UCC) - ANS -primarily state common law; relaxes the common law
principles of ICLACO so that commerce can run smoothly and swiiftly
UCC applies to _____ of goods that are moveable and merchants, but does not apply to
_________. - ANS -sale, services
Under UCC a chandelier is covered until _______. Not in real estate. - ANS -installation
UCC_______the strict contract (I.C.L.A.C.O.) necessary to form _________ b/c it _________
commerce down and ___________ the price of the product. - ANS -relaxes, contract, slows,
increases
Article 2 of the UCC - ANS -DEFINES GOODS. Only considered a good under UCC if
moveable and tangible
UCC & Statue of Frauds- Article 2 - ANS -contract for sale of $5,000 or more is not enforceable
unless in writing and signed by the party against whom enforcement is sought
UCC Article 3 - ANS -APPLIES TO NEGOTIABLE INSTUMENTS (checks, drafts, notes, and
certificates of deposit)
, Four types of negotiable instruments - ANS -Checks, drafts, notes, and certificates of deposit
When initially created a negotiable instrument was merely - ANS -a written promise or order to
pay a certain sum of money
check - ANS -draft drawn on a bank and payable on demand
draft - ANS -bill of exchange that involves the drawer who orders drawee to pay the payee
note - ANS -aka promissory notes; form of promise to pay by one party (maker) to pay a certain
sum to another party (payee)
certificate of deposit - ANS -acknowledment by the bank that it recieved money deposited from
client with promise that bank will repay the money after a date specified in additioon with
interest
Express warranty - ANS -seller's promise as to quality, safety, performance, or durability of
goods
An express warranty can be created under which circumstances? - ANS -1) sample or model of
the good provided 2) description of goods attributes give or 3) seller makes a written or oral
statement about the good
Implied warranties - ANS -Unwritten, unexpresses promise or guarantee that a court infers to
exist accompanied by the good(s). A quality and safety standard imposed by Article 2 of the
UCC that is automatically imposed on sellers unless they specifically disclaim them.
Implied warranty of merchantability - ANS -accompanies every sale by a merchant, unless both
parties agree otherwise.
Merchantable - ANS -the good must be of a quality comparable to that generally accepted in
that line or trade.
Bankruptcy is diveded into sections called ________ - ANS -chapters
Administrative Bankruptcy chapters are _, _, and _. - ANS -1,3,5
Bankruptcy- Chapter 7 - ANS -Fresh start where the court exonerates all debts and no debt is
owed once the case is concluded. Assets are subject to be taken by creditors. Avail. to people &
businesses
Bankruptcy- Chapter 11 - ANS -For businesses only; allows for payment of debts over a period
of time not to exceed 60 months Debtor retains assets. Allows company to restructure. Typically
involves reorganization seeking to keep business in tact while seeking protection from creditors
drawee - ANS -entity that is expected to accept and pay a bill of exchange (check, letter of
credit, etc.) on presentation or on a certain date (called due date or maturity date)
offeror - ANS -person or corp. who puts forward an offer to someone else to make a contract
offeree - ANS -person or corp. to whom an offer is make to make a contract
Convention on Contracts for the Int'l Sale of Goods(CISG) - ANS -Takes priority over the UCC
(state law); only applies to goods in commercial sales (betw. merchants)
Where are the primary sources of int'l law found? - ANS -treaties
treaties - ANS -contracts betw. our gov't and that of another entered by the president and
approved by 2/3 of the senate.
A treaty is the same as a(n)... - ANS -convention
Uniform Commercial Code (UCC) - ANS -primarily state common law; relaxes the common law
principles of ICLACO so that commerce can run smoothly and swiiftly
UCC applies to _____ of goods that are moveable and merchants, but does not apply to
_________. - ANS -sale, services
Under UCC a chandelier is covered until _______. Not in real estate. - ANS -installation
UCC_______the strict contract (I.C.L.A.C.O.) necessary to form _________ b/c it _________
commerce down and ___________ the price of the product. - ANS -relaxes, contract, slows,
increases
Article 2 of the UCC - ANS -DEFINES GOODS. Only considered a good under UCC if
moveable and tangible
UCC & Statue of Frauds- Article 2 - ANS -contract for sale of $5,000 or more is not enforceable
unless in writing and signed by the party against whom enforcement is sought
UCC Article 3 - ANS -APPLIES TO NEGOTIABLE INSTUMENTS (checks, drafts, notes, and
certificates of deposit)
, Four types of negotiable instruments - ANS -Checks, drafts, notes, and certificates of deposit
When initially created a negotiable instrument was merely - ANS -a written promise or order to
pay a certain sum of money
check - ANS -draft drawn on a bank and payable on demand
draft - ANS -bill of exchange that involves the drawer who orders drawee to pay the payee
note - ANS -aka promissory notes; form of promise to pay by one party (maker) to pay a certain
sum to another party (payee)
certificate of deposit - ANS -acknowledment by the bank that it recieved money deposited from
client with promise that bank will repay the money after a date specified in additioon with
interest
Express warranty - ANS -seller's promise as to quality, safety, performance, or durability of
goods
An express warranty can be created under which circumstances? - ANS -1) sample or model of
the good provided 2) description of goods attributes give or 3) seller makes a written or oral
statement about the good
Implied warranties - ANS -Unwritten, unexpresses promise or guarantee that a court infers to
exist accompanied by the good(s). A quality and safety standard imposed by Article 2 of the
UCC that is automatically imposed on sellers unless they specifically disclaim them.
Implied warranty of merchantability - ANS -accompanies every sale by a merchant, unless both
parties agree otherwise.
Merchantable - ANS -the good must be of a quality comparable to that generally accepted in
that line or trade.
Bankruptcy is diveded into sections called ________ - ANS -chapters
Administrative Bankruptcy chapters are _, _, and _. - ANS -1,3,5
Bankruptcy- Chapter 7 - ANS -Fresh start where the court exonerates all debts and no debt is
owed once the case is concluded. Assets are subject to be taken by creditors. Avail. to people &
businesses
Bankruptcy- Chapter 11 - ANS -For businesses only; allows for payment of debts over a period
of time not to exceed 60 months Debtor retains assets. Allows company to restructure. Typically
involves reorganization seeking to keep business in tact while seeking protection from creditors
