Presentation on theme: "ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS BB30 Business Law 6.01Summer 2013."— Presentation transcript:
ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS BB30 Business Law 6.01Summer 2013
6.01 Understand sales law BB30 Business Law 6.01Summer 2013
Sales Activity List 5 items you bought in the last week. List 2 “large” purchases your family has made in the last 2 years. BB30 Business Law 6.01Summer 2013 SALES LAW & EXCHANGE OF OWNERSHIP
Using the list of the items in the Sales Activity: Did ALL of those constitute a sale? What is the definition of a sale? What did you do with the product? What is the definition of ownership? Were they goods or services? Did money exchange hands for these items? If you didn’t have the money to buy the item, how could you change ownership? BB30 Business Law 6.01Summer 2013 SALES LAW & EXCHANGE OF OWNERSHIP
E-commerce laws E-commerce – conducting business using electronic means, especially the Internet Jurisdictional issues – which state has jurisdiction in cases involving sellers & buyers in different states? The ability to access a website in a particular state does not, by itself, give that state jurisdiction States may gain jurisdiction over e-commerce transactions if the website allows users to purchase merchandise Example: Amazon.com - jurisdiction lies with the state in which the buyer resides Tax issues – jurisdiction helps to determine which state may tax Internet sites, and how buyer may be taxed Authentication – helps to make certain that buyers and sellers are who they say they are Digital signature – encoded message that appears at the end of a contract created online BB30 Business Law 6.01Summer 2013 SALES LAW & EXCHANGE OF OWNERSHIP
Group Activity: Create a one page summary of the UCC. Include: General Information (First published, definition, goal/purpose) Specific Information (leasing goods, contracts for goods/services, special rules) Why is it important? BB30 Business Law 6.01Summer 2013 UNIFORM COMMERCIAL CODE
Payment vs. Delivery vs. Receipt of Goods What is the proof? Vendor vs. Vendee vs. Merchant vs. Casual Seller Unconscionable Contract vs. Statute of Frauds BB30 Business Law 6.01Summer 2013 TRANSFER OF OWNERSHIP
Authorized Person vs. Buyers in a Sale Induced by Fraud vs. Holders of Negotiable Instruments vs. Merchants with Possession of Sold Goods BB30 Business Law 6.01Summer 2013 TRANSFER OF OWNERSHIP
Existing Goods vs. Identified Goods vs. Future Goods BB30 Business Law 6.01Summer 2013 TRANSFER OF OWNERSHIP
SituationDefinitionWho owns item? Tender of deliverySeller notifies buyer of item being available. Buyer once notified. Seller ships goodsSeller is required to ship item but not deliver to buyer. Buyer once the carrier is in possession of item. Seller sends document of title Seller provides the document of title to the buyer and the buyer can receive the goods at anytime. Buyer once document of title is possessed. Seller tenders items at place of sale Buyer is offered item at the place of the sale. Buyer once item is tendered. BB30 Business Law 6.01Summer 2013 When does ownership transfer?
SituationWho is at risk? FOB Shipping PointBuyer is at risk once the item is shipped. FOB DestinationSeller is at risk until the product is delivered to the buyer BB30 Business Law 6.01Summer 2013 RISK OF LOSS You purchase a used car on autotrader.com from a dealer in Atlanta. While the car is being driven to North Carolina it slides off the road and is damaged. What is type delivery terms will protect you in this transaction? When does risk of loss transfer?
SituationDefinitionWho is at risk? Cash and Carry SalesPay cash and take immediate delivery Buyer assumes risk at receipt. Sales on CreditPayment at a later dateBuyer assumes risk at receipt. COD SalesCollect on deliveryBuyer assumes risk at receipt (when paid in full). Sale or ReturnBuyer has the option to return the goods Buyer assumes risk at receipt. Sale on ApprovalBuyer has goods on a trial basis Buyer assumes risk at time of approval. Sale of an Undivided InterestBuyer owns a portion of the item Each owner has a partial risk. AuctionBuyer bids on item.Ownership transfers when the gavel falls (unless reserve is not met). Bulk TransferAll or a major part of a business is sold. Buyer must notify creditors of ownership transfer. BB30 Business Law 6.01Summer 2013 Types of Sales/Transfer of Rights? RISK OF LOSS