1. Chapter 13 Section 1 Bobbie K and Juan R

2. What is a Sale? The Uniform Commercial Code (UCC) governs sales of goods, also governs contracts to sell goods in the future. The UCC definition goods do not include Money- (except rare currency or coins) Intangible - (not touchable) Patients and copyrights - (rights granted by the federal government) Real Property - (land, buildings, and legal rights) A sales contract may be made under any manner to show agreement. The law of contracts has been simplified and made less strict. In a case where the price will be set at a later time and nothing is said about a price, the buyer must pay a reasonable price when the product arrives.

3. Contracts that are not sales In some situations goods may be included, however the main reason of the contract is for a service. A contract in which a service is provided it is not under the rules and consequences if it were under the UCC. In both sales of goods and contracts to sell there are two types of people. The seller is known as the the vendor, while the buyer is called the vendee.

4. Payment and Delivery Payment happens when the buyer gives the seller an agreed upon amount for a good. After payment Delivery occurs, which means the object is given to the buyer or it is now in the buyer’s control. Receipt of goods goes hand in hand with delivery in the aspect of that it is when the buyer takes possession or control of the goods at hand. In a basic sales transaction, one will pay, receive, and obtain ownership of said goods. The buyer is obligated to pay for the good as the seller is obligated to provide the goods, these don’t always typically have to occur at the same time, and the possession of goods can change hands within and amount of time, but typically once money (or goods) has exchanged hands.

5. Bill of Sale A Bill of Sale is a receipt that proves ownership. Sometimes the document is required by a statute. It makes the sale of property easier. If something is lost in disaster it can prove it was yours. People forge to steal.

6. Use of Credit With the use of credit, qualified buyers may pay in installments. With installments the buyer may receive the ownership and possession of the good before even the first payment. Most retailers deal with customers who either pay with credit cards or charge accounts. Those customers then pay back for it in increments to pay off the amount they charged.

7. Acceptance of Goods Acceptance of goods occurs when the buyer either says that they are satisfactory, treated as if the buyer would have, goes to sell them to another, however, if a customer does not reject the goods in a certain amount of time it is assumed that the goods are of good or approved upon quality.

8. Other Ways to Contract A sales contract may be made through basic exchange of offer and acceptance. The UCC says however, that the order can be confirmed by phone, fax, mail, or even the sender simply sending the goods and alerting them of this action.

9. Unconsconable Sales Contracts UCC may find a contract grossley unfair. A court decides a contract is bad by: refuse to enforse contract limit the clauses application is not fair no clause

10. SUMMARY The UCC are the over-sees sales contracts in four ways. However there are contracts that are services and those are not covered by UCC. Then there are sales transactions and they get sales receipts so they can physically touch it.The bill of sale is very important and can be forged. Also the UCC can call a contract no good in 3 points.

11. Chapter 13 - Section 2 Chrystal Fellows & Thomas Reppenhagen

12. Special Rules for Merchants The Uniform Commercial Code (UCC) treats all buyers and sellers alike, in most cases. Specialized rules may be applied to merchants Merchants held to higher standard of conduct than casual sellers Merchants may require licenses to sell, and are subjected to special taxation and closer regulation by the government

13. Merchant Status in Sales Contracts Under UCC, offeror can state the offer to buy/sell goods must be accepted exactly as made or not at all Common law allows for terms to be changed (counteroffers) Under the law of sales of goods, the new terms are called a proposal for addition; what happens depends if both parties are merchants If the new term is a material alteration, it is only included if original offeror is bound by it

14. How Does the Statute of Fraud Apply To Sales? Sales contracts are enforceable in court; however, sales valued at $500 or more must be evident in writing to be enforceable. To satisfy the Statute of Frauds, all that is required is a writing signed by the party being sued, which satisfies the court that a contract to sell has been made. Quantity of goods in transaction must be included in the writing Between merchants, signature of party suing may be enough to prove an otherwise unenforceable sales contract

15. Exceptions to the Statute of Frauds for Sales Contracts Goods received and accepted by the buyer A buyer may receive goods without accepting them Under UCC, buyer can accept goods in three ways: Buyer signifies to the seller that the goods conform to the contract or will be retained in spite of their nonconformity Buyer acts inconsistently with seller’s ownership Ex: uses, consumers, resells good Buyer fails to make an effective rejection after having a reasonable opportunity to inspect the goods

16. Buyer Pays For Goods And Seller Accepts Payment -When the full payment is paid and accepted by the seller, an oral contracts enforceable. -When only partial payment is accepted by the seller, an oral contract is only enforceable for the paid for goods and the goods are divided into the amount that is paid for. If the item isn’t divisible there is no quantity dispute and the contract is fully enforceable.

17. Goods Specially Made Not Suitable For Sale To Others A seller can enforce an oral contract for non-resalable goods if 1.The seller has substantially begun to manufacture them, or 2.The seller has made contracts to obtain the goods from third parties.

18. Summary Merchants are generally held to a higher standard of conduct by the UCC than casual sellers, as they are more knowledgeable in what they sell. Sales or contracts to sell may be oral, written, or implied from the conduct of the parties. In order for a contract to be enforceable in court, a sale for $500 or more must be evidenced by a writing, which must specify at least a quantity of goods. However, a writing is not essential under certain circumstances that still satisfy the Statute of Fraud. Ultimately, there must be sufficient evident through writing for a sale to be enforceable in court, and parties involved in the sale must follow normal, basic sales procedures to avoid turmoil or involving the courts.