Chapter 19 – Formation and Terms of Sales Contracts
V. ANSWERS TO PROBLEMS AND PROBLEM CASES:
1. No. The court noted that the Uniform Commercial Code applies only to transactions
involving the sale of goods. If a contract involves only the sale of goods, the UCC
applies. If a contract involves the rendition of services, the UCC does not apply.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 19 – Formation and Terms of Sales Contracts
2. No. If delivery is to be made without moving the goods and no documents of title are
involved, title passes at the time of contracting if the goods are identified at the time
of contracting (Section 2-401[3][b]). It is not necessary that the goods be in
3. No. Pursuant to 2-403, a car owner who relinquishes his car in exchange for a
4. No. Under 2-403 (1), a person with voidable title has the power to transfer a good
title to a good faith purchaser for value. Where goods have been delivered under a
transaction of purchase, the purchaser has this power even though the delivery was
procured through fraud punishable as larcenous under the criminal law. Here,
5. No. Under 2-509 of the Code, the risk of loss passes to the buyer from a merchant on
the buyer’s receipt of the goods. Here, Legendary Homes never received the goods;
6. Yes. Where the seller is a merchant dealing in goods of the kind sold, the risk of loss
passes to the buyer on his receipt of the goods under UCC Section 2-509(3). Here,
7. Yes. Where no shipment of the goods or holding of the goods by a bailee is involved,
if the seller is not a merchant, the risk of loss passes to the buyer on tender of
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 19 – Formation and Terms of Sales Contracts
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 19 – Formation and Terms of Sales Contracts
VI. ONLINE RESEARCH: USING THE INTERNET TO BUY A COMPUTER
Steps taken by a student performing this exercise:
1) Google search “dell computers”
2) Go to www.dell.com
3) Once at dell.com, click on “home” and “laptops”
4) Click on model “Z series 14Z”
5) Price $599 with $50 mail in rebate
6) Cost of shipping computer: limited time free shipping
7) Warranties provided: 1year warranty with 1 year mail in service.
8) Total satisfaction policy includes ability to return system within 21 days of
purchase. Price refunded is price of system minus shipping and handling and
possible restocking fee of 15%.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.