Mba 600: legal and ethical environment for business

  Read and summarize chapter 17 of Biz Law Text in at least 400 words.

*Can Ebooks be considered “Goods?” Why or Why Not?

CHAPTER 17  7.1 Sale of Goods Legislation
The  Sales  of  Goods  legislation  applies  to  all  contracts  involving  the  sale  of  goods  commercially  or  for  
everyday use. A contract for the sale of goods is a contract where a seller transfers or agrees to transfer
their ownership (title) in the goods or property subject to the sale is transferred from the seller to the
buyer at the time of the contract. In respect to a sale of goods contract, the definition of a good is very
wide and captures many products and things.
17.1.1 Meaning of Goods
The  term  ‘goods’  under  a  sale  of  goods  contract  includes  most  forms  of  movable  personal  property  of  
any nature or description, and essentially is often referred to as merchandise. This definition of a good
recognises the fact that the goods are used in business, trade and commerce and that they may require
transport  and  delivery  from  one  place  to  another.  The  goods  that  are  the  subject  of  a  sales  of  goods  
contract are generally classified as existing goods, future goods, specific goods or ascertained goods and
unascertained goods.
These types of transaction are controlled by similar Sale of Goods legislation of the various jurisdictions.
The various sales of goods legislation of the jurisdiction will normally apply to the sales transaction when
the ‘ownership’ of the goods is immediately transferred (passed) from the seller to the buyer for money
consideration (the price) thus giving rise to the sale of goods contract. If there is no money consideration
present,  then  there  is  no  sale  of  goods  contract  and  then  any  sale  of  goods  legislation  does  not  apply  
and in this instance, there is a swap, barter or exchange of the specific goods. Thus the various sales of
goods  legislation  primary  function  is  to  provide  protection  to  consumers  who  purchase  goods  in  the  
form  of  implied  conditions  as  to  correspondence  with  description,  fitness  for  purpose,  merchantable  
quality, sale by sample and title.  

 

Read and summarize chapter 18 of Biz Law Text in at least 400 words.

* Are the duties of buying and selling different on Amazon than they would be in a brick and mortar setting? Why or Why Not?

 

18.1 Formation of Sales of Goods Contracts
A contract for the sale of goods is generally defined in the sales of goods legislation as a contract whereby
the seller transfers or agrees to transfer, the actual property in the goods to the purchaser, a consumer
as defined under the legislation and hence its ownership for a money consideration called the price. In
order for the sale of goods legislation to apply it is necessary that there has been an actual purchase of
goods which are broadly defined and consist of different classifications for money consideration called
the price and an actual and immediate transfer of ownership of the property that is subject to the sales
contract. The term goods includes most forms of movable (tangible) personal property commonly referred
to  as  merchandise  of  which  there  are  four  categories  existing  goods,  future  goods,  specific  goods  and  
unascertained goods that are the subject of contracts of sales on a daily basis in trade or commerce and
that are easily transported from the seller to the buyer.
18.2 Consideration for Sale of Goods
Under  contract  law  an  essential  rule  is  that  for  a  contract  to  be  formed  and  enforced  that  valuable  
consideration must pass between the parties and this fundamental rule of contract law is also relevant
and applies to the sale of goods. Generally, the sale of goods legislation provides that consideration in
the  form  of  money  must  exist  in  order  for  a  contract  of  sale  to  be  valid.  If  goods  are  provided  free  of  
charge or are transferred through an exchange, barter or swap then then the sales of goods acts do not
apply as there was no consideration (price paid) to support the sale transaction. In this context, the term
‘price’  refers  to  the  cost  or  charge  to  purchase  the  goods  and  generally  the  price  paid  for  goods  when  
that  the  purchaser  (consumer)  has  acquired  possession  and  good  tile  to  that  good  and  has  ownership  
or property in the good purchased that was subject to the initial sale of goods contract.
Thus under the sale of goods contract, the price that is paid for the goods is the money consideration,
and as such, if there is no money consideration present, then there is no sale of goods contract and the
sale of goods legislation does not apply and in this instance, there is a swap, barter or exchange of the
specific goods. If there are situations where no actual price for the goods have been agreed upon by the
parties, then the buyer must pay a reasonable price and this is a question of fact in each case.
18.3 Transfer of Property
Transfer  of  property  or  ownership  means  that  the  ownership  in  the  goods  is  transferred  at  the  time  
of  the  contract  of  sale  and  is  formed  when  a  good  is  bought  by  the  purchaser  form  the  seller  and  is  
transferred upon the payment of the price being the consideration. If the transaction is to be caught by
the respective sale of goods legislation then there must be an actual transfer of ownership (or property).
Effectively  this  means  that  at  general  law,  when  a  good  is  bought  ownership  passes  from  the  seller  to  
the buyer and the sales of goods legislation effectively provides indicators that determine at what point
goods are transferred from the seller to the buyer where the intention of the parties in this instance is
lacking, unclear or not satisfied for whatever reason.
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Business Law – Now!  
Part I244
Operation of Sale of Goods Acts
In contracts of sale the actual intention of the parties regarding when the property (and the associated risk)
is to pass from the seller to the buyer is a very important and crucial matter that needs to be determined
by the courts in any given circumstance regarding a sales of goods contract involving a dispute between
the seller and the buyer. In respect to the buying and selling of goods the general principle of contract
law  apply.  Generally  if  the  goods  are  purchased  by  persons  with  limited  capacity  such  as  minors,  and  
they are for necessaries then they must pay a reasonable price for the goods. The importance of transfer
of ownership is that risk of loss of the goods passes with the person who has the ownership of the goods.

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