New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 22 and 23

by: Kendall Davis

Chapter 22 and 23 ACCT 324 - 002

Kendall Davis
GPA 3.8

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Examples and explanations from class; EXAM TIPS!
Survey of Commercial Law
Julius David Johnson (P)
Class Notes
25 ?




Popular in Survey of Commercial Law

Popular in Accounting

This 2 page Class Notes was uploaded by Kendall Davis on Friday September 16, 2016. The Class Notes belongs to ACCT 324 - 002 at University of South Carolina taught by Julius David Johnson (P) in Fall 2016. Since its upload, it has received 6 views. For similar materials see Survey of Commercial Law in Accounting at University of South Carolina.


Reviews for Chapter 22 and 23


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/16/16
Chapter 22­ September 16   Types of Sales Contracts o “Common carrier”­FedEx, UPS o “Shipment Contract” or “Origin” Contract  buyer bares risk once it is shipped o “Destination” Contract: seller bares the risk of loss until seller delivers goods to  stipulated destination  Free on board; seller bares risk during shipment  FOB (“Free on Board”):  Selling price includes transportation costs, and seller has risk of  loss to either place of shipment, or place of destination  FAS (“Free Alongside”):  Seller, at seller’s expense, delivers goods alongside ship before risk transferred to buyer  CIF or CF (“Cost, Insurance, and Freight”; “Cost and Freight”):  Seller places goods in  possession of carrier before risk passes to buyer  Delivery “Ex­Ship” (Delivery From Carrying Vessel):  Risk of loss passes to buyer when  goods leave ship o Buyer possesses risk  Goods in bailment: identifies who has the risk while goods are in storage or a warehouse,  etc.  Conditional Sales o “Sale on Approval”: the opportunity to look at something before you buy o “Sale­or­Return”: selling all that you can and then returning the rest  Seller in Breach: failure to deliver goods or nonconforming goods: o Buyer may accept nonconforming goods or reject them  Sellers right to “cure”  Ex. delivering wrong grade of leather  Risk of loss remains with seller until buyer accepts goods or deficiencies  are corrected  Buyer in Breach: buyer refuses to accept conforming goods, goods later lost or damaged: o Risk of loss depends on type of contract Chapter 23  Sellers and lesser rely on “good faith”  Good Faith: honesty in fact o UCC imposes obligation to “commercial reasonableness”  Perfect Tender Rule: if the goods or tender of delivery fail in any aspect of the contract,  the buyer has the right to: o Accept the goods o Reject the entire shipment o Accept part or reject part  Aim for total performance, but substantial performance  Exceptions to “Perfect Tender” Rule o Industry standards  Only 90­99% is usually up to grade o Past dealings and performance between parties o Agreement between parties  Contract; did both parties follow the rules of the contract? o Seller’s/Lessor’s right to cure  Right to cure: Usually in the contract; they have the right to fix it within a  certain number of days o Excuse from performance when identified goods destroyed through no fault of  parties o “Substantial impairment”: if defects are so substantial that the goods cannot be  cured, the buyer can revoke the goods o Commercial Impracticability  Ex. if something becomes illegal underneath common law  Inspection, Rejection and Revocation of Acceptance: o “Reasonableness” governs inspection process  i.e. lettuce needs to be inspected faster than leather  if there is a large number of a good, the buyer needs more time to inspect  than if there was a smaller number o Must give reasonable notice upon exercising right of rejection /revocation of  acceptance o Must give notice within a reasonable time that they are accepting/rejecting goods  Exam tips: o Study in laws o Learn UCC, then Common Law separately and compare


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.