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70 Cards in this Set
- Front
- Back
Uniform Commercial Code (UCC) |
is a model law that applies to commercial transactions such as the sale of goods, leases, contracts, and negotiable instruments.
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UCC
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abbreviates Uniform Commercial Code.
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Goods
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include tangible, movable property other than money.
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Merchants
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are professionals who specialize in buying or selling one or more types of goods.
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Statute of frauds
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requires certain contracts to be evidenced by writing.
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Risk
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is the chance of financial loss.
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Collect on delivery (COD)
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is the delivery term requiring payment on delivery.
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COD
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abbreviates collect on delivery.
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Implied warranty of fitness for a purpose
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promises goods are fit for their particular intended use if the buyer relied on the seller’s help in their selection.
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Implied warranty of title
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promises the title conveyed is good, its transfer is rightful, and the goods are free from any undeclared lien.
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Implied warranty of merchantability
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promises that the goods are up to trade standards, of at least average quality for their kind if they’re fungible, fit for their ordinary purposes, of reasonably consistent quality, adequately packaged, and as described on their label.
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Express warranty
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is a spoken or written statement that forms, in part, the basis of the bargain.
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FOB (free on board) place of shipment
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is the delivery term that requires the seller to deliver the goods to the shipper at the seller’s risk and expense.
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FOB (free on board) place of destination
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is the delivery term that requires the seller to deliver the goods to the final destination at the seller’s risk and expense.
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FOB
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abbreviates free on board.
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FAS (free alongside) vessel
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is the delivery term that requires the seller to deliver the goods to the shipping vessel at the seller’s own risk and expense.
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FAS
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abbreviates free alongside.
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FOB vessel
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is the delivery term that requires the seller to deliver and load the goods on the shipping vessel at the seller’s own risk and expense.
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CIF (cost
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insurancefreight)is the delivery term indicating that the contract price includes the cost of goods, insurance, and freight.
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CIF
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abbreviates costinsurancefreight.
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CAF (cost and freight)
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is the delivery term indicating the contract price includes the cost of goods and freight.
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CAF
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abbreviates cost and freight.
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Negotiable instrument
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is a signed, written instrument that contains an unconditional promise or order to pay a sum certain in money, does not contain any other promise or obligation, is payable on demand or at a definite time, and is payable to order or to bearer.
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Draft
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is an unconditional order by the first person (drawer) to the second person (drawee) to pay a third person (payee).
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Check
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is a draft on a bank which is payable on demand.
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Certificate of deposit (CD)
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is a bank acknowledgment of receipt of money with a promise to repay it, with stated interest, at a specified future time.
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CD
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abbreviates certificate of deposit.
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Promissory note
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is a twoparty promise to pay money other than a certificate of deposit.
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Trade acceptance
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is a twoparty draft used when a buyer can’t pay cash to the seller until he resells the goods.
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Primary liability
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is borne by the maker of a note or acceptor of a draft, who are required to pay the instrument according to its terms.
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Secondary liability
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is borne by the endorser or drawer, whose liability arises from another’s refusal to pay.
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Endorsement
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is a written signature on a negotiable instrument.
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Special endorsement
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ensures that the instrument can’t be negotiated without that person’s endorsement.
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Blank (general) endorsement
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is a signature using only the endorser’s name.
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General endorsement
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is another term for blank endorsement.
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Restrictive (collection) endorsement
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makes the instrument nonnegotiable.
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Collection endorsement
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is another term for restrictive endorsement.
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Qualified endorsement
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passes title, but limits the endorser’s liability to subsequent holders if the instrument is later dishonored.
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Unqualified endorsement
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places no limitation on the endorser’s liability to subsequent holders.
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Holder
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possesses an instrument drawn, issued, or endorsed to him, to his order, to bearer, or in blank.
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Holder in due course
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is a holder who takes an instrument for value, in good faith, and without notice that it is overdue or has been dishonored or of any defense against or claim to it by any person.
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Personal defenses
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include all claims on the part of any person and simple contract defenses, such as lack of consideration, misrepresentation, and fraud.
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Real defenses
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are based on the existence of the instrument, such as duress, incapacity, illegality, and discharge in bankruptcy.
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Warehouse receipt
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is a legal document that provides title to goods in storage and ensures delivery to the receipt holder.
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Bill of lading
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is the written contract between the shipper and the carrier.
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Carrier
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is a professional transporter of goods.
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Bailment
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is the temporary transfer of custody for a particular purpose.
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Bailor
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transfers possession (but not ownership) of personal property to another (known as the bailee) with the expressed intent that the property be returned at the end of the bailment.
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Bailee
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possesses another’s property for a limited time for a specific purpose, such as repairmen. |
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Consignee |
receives goods subject to a bill of lading. Consignorships goods subject to a bill of lading. Security interestgives the secured party a right to take personal property (collateral) that secures the loan made to the buyer. |
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Secured transaction |
involves a lender, seller, or other creditor who has an interest in personal property that gives him the right to take that collateral if the debtor fails to perform.
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Collateral
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is personal property that secures the loan to the buyer.
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Pledge
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is the security device in which the lender holds the collateral.
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Perfected security interest
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exists when the creditor has filed the proper financing statement with the county or has obtained possession of the collateral.
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Constructive notice
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is knowledge presumed by law.
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Financing statement
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is filed in public records to give notice of a security interest in property.
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Federal Trade Commission (FTC) Act
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prohibits unfair or deceptive methods of commerce.
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FTC
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abbreviates Federal Trade Commission.
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Magnuson
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Moss Actrequires the written warranty, if any, for consumer products to disclose what is and is not covered, when it expires, whom it covers, what the warrantor will do if the product malfunctions, what service and parts are free, and how to obtain redress.
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Limited warranty
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contains the six disclosures required by the MagnusonMoss Act, but limits the buyer’s rights in some way.
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Full warranty
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promises to fix the product without charge and provides a ‘lemon’ provision.
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Lemon provision
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lets the buyer of a product that’s never been right get a replacement or a refund.
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Truth in Lending Act
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establishes disclosure requirements for any person who regularly grants credit or who makes finance charges on installment sales to people buying personal or real property for personal use.
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Fair Credit Billing Act
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allows the buyer of a defective product or service purchased with a credit card to refuse to pay if he first tries to return the property or give the merchant a chance to correct the problem.
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Fair Debt Collection Practices Act
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prohibits collectors from using unfair practices such as harassing the debtor, revealing information to others, and contacting the debtor (except through court process) if the debtor makes that request in writing.
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Fair Credit Reporting Act
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requires consumer reporting agencies to exercise fairness, impartiality, and respect for consumers’ rights.
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Equal Credit Opportunity Act
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prohibits credit discrimination based on age, race, religion, national origin, receipt of welfare, or marital status.
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Bankruptcy
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adjusts the interests of insolvent debtors and their creditors through liquidation of the debtor’s assets and distribution of the proceeds or through reorganization of the debtor’s affairs, free of claims, with partial or full payment of debts.
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Chapter 7 (of the Bankruptcy Act)
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liquidates the nonexempt assets of a bankrupt, distributes the proceeds to the bankrupt’s creditors, and discharges the rest of the debts.
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Chapter 13 (of the Bankruptcy Act) |
allows reorganization of individual bankrupts. |