Term
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Definition
| a sellers or lessors oral or written promise, ancillary to an underlying sales or lease agreement as to the quality, description, or performance of the goods being sold or leased. |
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Term
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Definition
| a warranty that the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties. |
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Term
| Implied warranty of fitness for a particular purpose (464) |
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Definition
| a warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skill and judgment of the seller or lessor to select suitable goods. |
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Term
| Implied warranty of merchantability (461) |
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Definition
| a warranty that goods being sold or leased are reasonably fit for the ordinary purpose for which they are sold or leased, are properly packaged and labeled and are of fair quality. The warranty automatically arises in every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased. |
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Term
| Market-share liability (474) |
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Definition
| a method of sharing liability among several firms that manufactured or marketed a particular product that may have caused a plaintiffs injury. This form of liability sharing is used when the true source of the product is unidentifiable. Each firms liability is proportionate to its respective share of the relevant market for the product. Market-share liability applies only if the injuring product is fungible, the true manufacturer is unidentifiable, and the unknown character of the manufacturer is not the plaintiffs fault. |
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Term
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Definition
| the legal liability of manufacturers, sellers and lessors of goods to consumers, users and bystanders for injuries or damages that are caused by the goods. |
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Term
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Definition
| a defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. If the misuse is reasonable foreseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse. |
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Term
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Definition
| basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repurpose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations. |
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Term
| Unreasonably dangerous product (469) |
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Definition
| in product liability, a product that is defective to the point of threatening a consumers health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it. |
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Term
| Acceleration clause (496) |
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Definition
| a clause in an installment contract that provides for all future payments to become due immediately on the failure to tender timely payments or on the occurrence of a specified event. |
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Term
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Definition
| (1) in contract law, the offerees notification to the offeror that the offeree agrees to be bound by the terms of the offerors proposal. Although historically the terms of acceptance had to be the mirror image of the terms of the offer, the Uniform Commercial code provides that even modified terms of the offer in a definite expression of acceptance constitute a contract. (2) in negotiable instruments instruments law, the drawees signed agreement to pay a draft when presented. |
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Term
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Definition
| the person (the drawee) who accepts a draft and who agrees to be primarily responsible for its payment. |
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Term
| Bankers acceptance (489) |
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Definition
| a negotiable instrument that is commonly used in international trade. A bankers acceptance is drawn by a creditor against the debtor, who pays the draft at maturity. The drawer creates a draft without designating a payee. The draft can pass through many parties hands before a bank (drawee) accepts it, transforming the draft into a bankers acceptance. Acceptance can be purchased and sold in a way similar to securities. |
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Term
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Definition
| a person in the possession of an instrument payable to bearer or indorsed in blank. |
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Term
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Definition
| any instrument that is not payable to a specific person, including instruments payable to the bearer or to cash |
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Term
| Certificate of deposit (CD) (490) |
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Definition
| a note of a bank in which a bank acknowledges a receipt of money from a party and promises to repay the money, with interest, to the party on a certain date. |
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Term
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Definition
| a draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand. |
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Term
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Definition
| any instrument (such as a check)drawn on a drawee (such as a bank) that orders the drawee to pay a certain sum of money, usually to a third party (the payee), on demand or at a definite future time. |
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Term
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Definition
| the party that is ordered to pay a draft or check. With a check, a financial institution is always the drawee. |
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Term
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Definition
| the party that initiates a draft (writes a check for example) thereby ordering the drawee to pay. |
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Term
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Definition
| a clause in a time instrument that allows the instruments date of maturity to be extended into the future. |
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Term
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Definition
| any person in the possession of an instrument drawn, issued, or indorsed to him or her, to his or her order, to bearer or in blank. |
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Term
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Definition
| a signature placed on an instrument for the purpose of transferring ones ownership rights in the instrument. |
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Term
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Definition
| the first transfer, or delivery, of an instrument to a holder. |
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Term
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Definition
| one who promises to pay a certain sum to the holder of a promissory note or certificate of deposit (CD). |
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Term
| Negotiable instrument (486) |
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Definition
| A signed writing that contains an unconditional promise or order to pay an exact sum of money, on demand or at an exact future time, to a specific person or order or to bearer. |
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Term
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Definition
| a negotiable instrument that is payable to the order of an identified person or to an identified person or order. |
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Term
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Definition
| a person to whom an instrument is made payable. |
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Term
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Definition
| the act of presenting an instrument to the party liable on the instrument to collect payment, presentment also occurs when a person presenst an instrument to a drawee for acceptance. |
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Term
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Definition
| a written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee or a subsequent holder) on demand or one a specified date. |
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Term
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Definition
| under the Uniform Commercial Code, any symbol executed or adopted by a party with a present intention to authenticate a writing. |
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Term
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Definition
| a draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a stated time in the future. The buyer accepts the draft by signing the face of the draft, thus creating an enforceable obligation to pay the draft when it comes due. On a trade acceptance, the seller is both the drawer and the payee. |
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