So, to finish off Chapter 12, tell me you read Chapter 12, and the most interesting thing in Chapter 12. Then, answer the following questions:
- What does Article 2 and Article 2A of the Uniform Commercial Code cover? How did those articles become law in California? Name at least two types of contracts not covered by the UCC Article 2.
- Note what are three primary differences between the “common law” and the UCC as it relates to contracts for sales of goods? Check out Exhibit 12.2 for some hints.
- What terms must be included in a contract under the UCC?
- Define a “merchant” under the UCC.
- If a contract for the sale of goods does not cover or mention these items, what does the UCC presume for that item: a) price, b) place of delivery, c) time for payment, d) quantity, e) duration of the agreement, f) time for delivery g) when title passes in a sale. For example, the answer to a) is that if there is no price mentioned, then the price is a reasonable price at the time of delivery (UCC 2-305). (You can look at the back in the book for the UCC for quick reference answers.)
- If after ordering products, you receive defective goods, or no goods, under the UCC, what are your rights?
- What is an anticipatory breach?
- What does it mean to demand adequate assurances?
- If a Seller breaches a contract, tell me at least 3 choices he has and name a section of the UCC for at least one of them.
- If a Buyer breaches a contract, tell me at least 3 choices he has and name a section of the UCC for at least one of them.
- What express warranties are given by Sellers, and how do they arise?
- What implied warranties may be given by Sellers, and how do they arise?
- Tell me the 4 theories of liability a person harmed by a defective product may use to make a claim against a Seller (negligence, negligent failure to warn, contract warranty and strict liability), and tell me the elements of breach of warranty and strict product liability.
- What defenses may a Seller assert against a product liability claim?
- Thinking like a lawyer.
Harry (who owns the houses and is being sued by Rebecca) is also a furniture dealer in town. Harry calls up another merchant and says he will sell 30 dressers for the standard price and the other merchant Sam says you have a deal. (The standard price is $80 each.) Harry then sends an email to the other merchant confirming what he just said, and says the items will be sent in one week. The other merchant promptly responds via email and says he has no room for them and can’t pay for them, and needs three weeks. Harry calls him, and screams we had a deal, we have a deal and I will ship next week and will sue if you don’t accept them and pay for them in a week. The other merchant says I want them, but will not take them until 3 weeks from now. Harry reads Section 2-207 of the UCC which says:
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Write My Essay For Me(1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms.
(2) The additional terms are to be construed as proposals for addition to the contract. Such terms become part of the contract unless:
- (a) the offer expressly limits acceptance to the terms of the offer;
- (b) they materially alter it; or
- (c) notification of objection to them has already been given or is given within a reasonable time after notice of them is received.
(3) Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for sale although the writings of the parties do not otherwise establish a contract. In such case the terms of the particular contract consist of those terms on which the writings of the parties agree, together with any supplementary terms incorporated under any other provisions of this Act.
- Do the parties have a deal here?
- When must payment be made?
- If Harry ships in one week, can he demand payment on delivery?
- Discuss why you think they do or don’t have an agreement, and why the modifications are or are not valid. Don’t spend more than 30 minutes on this problem (#10 only, not the whole assignment). Since this is a long assignment, you can earn 1 extra credit point for a good Monday answer, but only if you remind me of this in your answer.
- How long did this homework take, and how are you doing in this class compared to your other classes? How much less work do you do in my class than in your other harder classes?
- Tell me if you read Chapter 13, and name the most interesting thing you learned in it.
- What is a “default” as it relates to a debt a person is obligated to pay another?
- Please describe a mechanics lien and a judicial lien. How do each arise?
- What is a guaranty or suretyship? How does it arise? What will cause a guarantor or surety to be released, and what are some defenses they may have to being held liable?
- What are Exemptions, in the context of debtor protection? Name a few.
- Complete this table:
Types of filing Typical debtor Describe what typically happens in the bankruptcy (a sentence or less)
Chapter 7
Chapter 9 Don’t worry about answering this one – cities try to reorganize their $$
Chapter 11
Chapter 13
- What are the primary objectives of US bankruptcy laws? (Hint – two)
- Read through the voluntary bankruptcy material, or do a little research on the internet. Name 5 or 6 steps that occur in a typical bankruptcy. Hint – 1) Filing a petition … 6) Discharge . Tell me some of the primary things that happen in a typical bankruptcy.
- Tell me what theautomatic stay is, what some exceptions are to the stay, and what adequate protection is.
- This case is a little long. You can read it, or you can look it up on the internet for a case summary. Teztlaff v. Educational Credit Management http://caselaw.findlaw.com/us-7th-circuit/1708687.html. (Links to an external site.)Links to an external site. (Links to an external site.)Links to an external site. You don’t have to read it carefully, just scan through it. After reading it, tell me if you believe the case was decided correctly, and why or why not. If Mr. Tetzlaff appeals to the US Supreme Court, how would they decide?
Please see the attached spreadsheet. It should be in Files as well. Use the Fall 2018 version. Fill it in, and then send it back, or if you do it by hand, please scan that or put it into a readable form, and send it back in the assignment. You can fill it in in class, and then submit the assignment by Friday!
After you complete the sheet, tell me:
- Answer question 2 at the end of Chapter 14.
- Answer question 4 at the end of Chapter 14.
- Tell me if you have read Chapters 14 and 15 and one most interesting thing you learned in either chapter.
- Presume that you are starting a business selling sunglasses at the swap meet they have at the college parking lot on weekends and you speak passable Spanish. You could have one rack of sunglasses, or you could have 19 racks, and if so, you’d need a few employees. Sales on 1 rack are $400 per week, and sales of 19 racks would be $8,000 per week after a couple of months. You have a friend that would be willing to help you in the business who has a pretty good ability to negotiate with sunglass salesmen to find good deals. He wants $300 per day he works, half of the profits, and he does not want to be liable for any losses you might have.
Tell me the business organization you would start if you choose the 1 rack business, or if you chose the 9 rack business, and why. Briefly describe how you might finance your business (you need $5,000 to start it)
Presume for the 9 rack business, (you need $40,000 to start it) you choose to bring in a friend, so tell me the basic concerns you might have.
