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The Sale and Leaseof Goodsl When to apply thelaw of sales in yourdaily lifel How to describe thespecial rules for salescontractsl How to determinewhen sales contractsmust be in writingl How to explain therules for auctions andbulk salesAs you learn more aboutthe law of sales, you willbe better able to protectyour legal rights andyour money when buyingor selling a product.l salel pricel goodsl Uniform CommercialCodel contract to selll merchantl usage of tradel firm offerl output contractl requirement contractl auction with/withoutreservel bulk transferSalesIn the previous eight chapters, you studied general contract law,which governs contracts for such things as real estate, employment,and personal services. This chapter explains a different type of law—the law of sales—that governs contracts for the sale and lease ofgoods. A sale is a contract in which ownership of goods is transferredfrom the seller to the buyer for consideration. The consideration is alsoknown as the price , or the money that is paid for goods. Goods areall things that are moveable, such as your clothing, books, pens, food,car, and even the gas you put in your car. Money, stocks, and bonds arenot considered goods.The law of sales grew from the practices of business people, merchants,and mariners in early English times. In those days, merchantsadministered the law in their own courts. As time went on, the early lawof sales combined with English common law and eventually was putinto a code (a collection of laws) called the English Sale of Goods Act.In 1906, a code of law called the Uniform Sales Act was introducedin the United States. It was similar to the English Sale of GoodsAct, and over a period of years, was enacted by the legislatures of35 states. However, it proved to be inadequate. As interstate commerce(trade between the states) developed, the need arose to make uniformthe many commercial laws in effect among the states. The result wasthe development of the Uniform Commercial Code (UCC) in 1952.The Uniform Commerical Code is a collection of laws that governsvarious types of business transactions. When you enter a contractinvolving goods, the UCC will apply.Example 1. Malika got a summer job at a Smoothie Shop on thesame day that her parents bought a new house. To celebrate, herfamily went out to dinner. The day’s activities involved threedifferent contracts. Malika’s oral employment contract and herparents’ written contract to buy the house are governed by thelaw of contracts discussed in Unit 2. In contrast, the family’soral contract with the restaurant for dinner is a sale of goodsand is governed by the UCC.One purpose of UCC is to combine the laws relating to commerceinto a single uniform code. Another purpose of the UCC is simplify,268 Unit 3: Understanding Consumer Law