Presentation on theme: "Sales Regulations/Warranties Study Guide"— Presentation transcript:
1 Sales Regulations/Warranties Study Guide Get out your review
2 Sales Regulations/Warranties Sale: contract in which ownership of goods is transferredConsideration: the exchange of things of valuePrice: money that is paid for goods
3 Sales Regulations/Warranties Goods: all things that are moveable, such as clothing, books, pens, food, gas, etc.Uniform Commercial Code: UCC: collection of laws that govern various types of business transactions
4 Sales Regulations/Warranties Contract to sell: when you buy goods and take ownership of them at a future dateMerchant: a business or a person who deals regularly in the sale of goods or who has a specialized knowledge of goods
5 Sales Regulations/Warranties Title: right of ownership to goodsBill of sale: formal evidence of ownership; only proves that you once had title, not that you still own the goodsRisk of loss: responsibility for loss or damage to goods
6 Sales Regulations/Warranties Statute of limitations: law that specifies the time within which a contract can be legally enforcedWarranty: guarantee
7 Sales Regulations/Warranties Express warranty: oral or written statement; promise about the quality, ability, or performance of a productImplied warranty: guarantee of quality imposed by law
8 Sales Regulations/Warranties Full warranty: promises to fix or replace a defective product at no charge to the customerLimited warranty: any written warranty that isn’t a full warranty
9 Sales Regulations/Warranties Breach of contract: failure to perform one or more promisesRemedy: the legal means of enforcing a right or fixing a wrongDamages: payment recovered in court by a person who has suffered an “injury” (legal term)
10 Sales Regulations/Warranties What is the difference between a sale and a contract to sell?In a sale, you buy goods and take ownership of them immediately.In a contract to sell, you take ownership of goods at a future time.
11 Sales Regulations/Warranties What is the difference between a merchant and a non-merchant?A merchant is a business or person who deals regularly in the sale of goods or who has a specialized knowledge of goods.A non-merchant is a casual or occasional seller.
12 Sales Regulations/Warranties Renee is hired by a large manufacturing company to work as a computer software engineer. Is her employment contract governed by the UCC? Why or why not?No, because she is providing a service. The USS applies to contracts for the sale of goods.
13 Sales Regulations/Warranties One week after planting tomatoes, Ursula enters into a contract with a canning company, promising to sell the company all of her tomatoes for a particular price. Is this a sale? Explain your answer.No. It is a contract to sell because the tomatoes are future goods. The sale cannot be completed until the tomatoes exist.
14 Sales Regulations/Warranties If you have a warranty on a product you purchased, can you automatically get a refund? Explain.No. The company may be entitled to fix it or replace it first. You also need to check the time limit on the warranty.
15 Sales Regulations/Warranties What does the statement “This product is guaranteed” mean? Explain.Nothing. Guaranteed to what? Guaranteed not to do what? It needs to be specific.
16 Sales Regulations/Warranties What are two main ways you can protect yourself when it comes to warranties?Get it in writingRead and understand the terms.
17 Sales Regulations/Warranties Neal Sanborn buys a used car from a private party. While he is driving to work the next day, the car breaks down. Neal learns the car needs major repairs. He claims breach of warranty of merchantability. Is this claim correct?No. The private party is not a merchant. They do not regularly deal with the sale of cars.
18 Sales Regulations/Warranties What should you do if a manufacturer does not satisfactorily repair an item you have purchased? How does the Magnuson-Moss Act relate to unresolved disputes?The act allows you to sue for damages or any other types of relief from the court awards, including legal fees.