Wiley CPAexcel Exam Review 2014 Study Guide, Regulation

Module 27: Sales

Overview

The law of sales governs contracts for the sale of goods. Since a sale of goods is involved, Article 2 of the Uniform Commercial Code (UCC) applies. A sale of goods under the UCC is the sale of tangible, moveable property. Be sure that when you are faced with a contract question to determine whether the contract involved the sale of goods; if so, then you will apply the UCC rules outlined in this module. If the contract involved something other than goods, then you want to use the common law rules outlined in Module 26.

A. Contracts for Sale of Goods

B. Forming the Contract for the Sale of Goods

C. Performance of the Sales Contract

D. Transfer of Title (Property Rights)

E. Risk of Loss

F. Product Liability

G. Remedies under Sales Law

H. Leases under UCC

I. Contracts for the International Sales of Goods (CISG)

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Simulations

Simulation Solutions

One of the areas tested in sales is product liability. When studying this area, you should pay particular attention to the different legal theories under which an injured party may recover. Realize that an injured party may recover under the legal theories of breach of warranty, negligence, and strict liability. It is important that you know the circumstances under which these theories may be used. Other areas that are often tested are warranties; disclaimers; risk of loss; and remedies, rights, and duties of the buyer and seller. You should ...