Know what the difference is between a “void” and “voidable” title/transaction? Does a bona fide purchaser aka good faith purchaser always get to retain goods? Why or why not? Be able to state a rule of law.

HINTS FOR SALES EXAM: CH.21-24

Class, for the exam you might want to focus on merchant buyer’s remedies for breach of contract of a merchant seller, entrusting/entrustment, void and voidable title and bona fide purchaser aka good faith purchaser.

1. Know what the difference is between a “void” and “voidable” title/transaction? Does a bona fide purchaser aka good faith purchaser always get to retain goods? Why or why not? Be able to state a rule of law.

 

2. Know what type of title a seller gives to a buyer when the goods are sold, stolen, entrusted, or obtained by fraud.

 

3. Understand who is a buyer, is that person a bona fide purchaser aka good faith purchaser, and why the seller’s fraud or thief does or does not allow that buyer to keep the goods. Also, why a buyer/consumer who buys goods that was entrusted to a merchant may or may not be able to keep the good. It will depend on if that buyer was a buyer in the ordinary course of business.

 

4. Understand the rule regarding the remedies for merchant buyers when merchant sellers breach a contract by delivering non-conforming goods. What can, and should those merchant buyers do with the non-conforming goods?