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Chapter 16

Management and Organizational Studies 2275A/B Chapter Notes - Chapter 16: Consumer Protection, The Seller, Unconscionability


Department
Management and Organizational Studies
Course Code
MOS 2275A/B
Professor
Susan Toth
Chapter
16

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Sales and Consumer Protection
1. Remedies on Default
A. Seller’s Remedies
Sellers Lien: A seller who holds the goods has a lien against a defaulting purchaser
-Gives the seller the right to retain goods hat have not yet been delivered until
appropriate payment is made (Even though title has transferred)
If the goods re en route to the buyer, and the buyer defaults, the seller has the right to
intercept those goods and retake possession
-Stoppage in Transit
The seller can also recover the goods if when the goods are delivered, within 30 days,
the buyer becomes bankrupt
-Has a claim over the buyers secured creditors
The seller must give notice before reclaiming the goods that were not paid for
-Unless they are perishable goods
If a buyer refuses to accept the goods she ordered, she may be legally required to pay
for them
If the seller re-sells the goods to mitigate the lose, and the full amount is not
recovered, the original buyer is still liable for that amount
The seller can keep a deposit, but cannot keep a down payment
B. Buyer’s Remedies
All remedies available to the buyer if the seller defaults are this provided by contract
law
When a condition of the contract is breached, the buyer may refuse to perform or
demand a return of any money paid
Damages can include the cost that is required to bring the goods up to specifications
in the original contract
2. Online Sales and International Transactions
A. Online Purchases
The basic provisions of contract law also apply to sales on the internet
The formation of a contract is sometimes extremely hard to determine
the jurisdiction of the contract is also very hard to figure out
B. International Transactions
Statutes are in place from the UN convention that give international transactions a
type of structure
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find more resources at oneclass.com
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