Key Terms
Merchants are held to a higher standard
They must act in good faith and observe reasonable commercial standards of fair dealing.
Course of Dealing
An established pattern of prior conduct between the same parties in prior transactions. Used to interpret the CURRENT co
Course of Performance
Conduct of the parties under the specific contract in question, after it was formed. Applies when a contract involves re
Usage of Trade
A practice or custom in a particular industry used so frequently that parties expect it to be followed. Industry standar
Additional term
A proposed term that addresses an issue NOT covered in the original offer. It expands the offer rather than contradictin
Different term
A proposed term that CONTRADICTS a term already in the offer.
Conforming goods
Goods that meet contractual specifications and satisfy performance requirements.
Non-conforming goods
Goods that fail to meet contractual specifications. Buyer may reject them OR revoke acceptance.
Cover
Obtaining reasonable substitute goods because the seller failed to perform.
Warranty
A contractual assurance that goods will meet a certain standard.
Two types
Express and implied.
Express warranty
A guarantee created by the words or actions of the seller that goods will meet certain standards.
Three ways a seller creates an express warranty
1. Affirmation of fact or a promise 2.
REQUIREMENT
The seller's words or actions must be part of the basis of the bargain. The buyer must have relied on the statement in d
Example
A seller states a product will last five years. The buyer purchases based on that statement.