[1ForAll]

On September 10, Bell Corp. entered into a contract to purchase 50 lamps from Glow Manufacturing. Bell prepaid 40% of the purchase price. Glow became insolvent on September 19 before segregating, in its inventory, the lamps to be delivered to Bell. Bell will not be able to recover the lamps because:

A.
Bell is regarded as a merchant.
B.
the lamps were not identified to the contract.
Incorrect C.
Glow became insolvent fewer than 10 days after receipt of Bell’s prepayment.
D.
Bell did not pay the full price at the time of purchase.

Bell never had title to the lamps. Title passes from the seller to the buyer only if the goods are identified in the sales contract.

Its questions like these that I seem can’t get a hold on. I am scoring 40% or less in sections by sections as I get deeper into the sections. I know I shouldn’t be beating myself up too hard but this is my first run through of me trying to get through all the sections. In the question, the contract stated 50 lamps. How is it not identified? (Answer is B) Like is it suppose to say the type of lamps? table lamps? reading lamps? etc.

[1ForAll]

Which of the following statements would not apply to a written contract governed by the provisions of the U.C.C. Sales Article?

A.
The contract may involve the sale of personal property.

B.
The obligations of a nonmerchant may be different from those of a merchant.

Incorrect C.
The obligations of the parties must be performed in good faith.

D.
The contract must involve the sale of goods for a price of $500 or more.
Explanation:
A written contract governed by the Uniform Commercial Code (U.C.C.) would involve personal property, its performance must be enshrouded in “good faith,” and merchants' and nonmerchants' obligations may be different. If the subject matter of the contract involves the sale of goods for a price of $500 or more, then the contract must be in writing. However, a sale of goods for less than $500 could be the subject of a written contract under the U.C.C.

Heres another one, what is this?! I thought if the goods is over $500 or more then it must be in writing, it even states it in the explanation! Is it one word that changes the whole meaning? “MUST”

[Author]

Replies