Official Course Description: MCCCD Approval: 03/27/07
LAS206 19946-20074	LEC	3 Credit(s)	3 Period(s)
Business Law (UCC)
Legal and ethical aspects of contracts, sales, commercial paper, secured transactions, documents of title, letter of credit, bank deposits, and collections. Prerequisites: None.
Cross-References: GBS206

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MCCCD Official Course Competencies:
LAS206   19946-20074	Business Law (UCC)

1.	Explain the role of contracts in society, their classifications, and the legal and ethical liabilities and obligations of the parties involved. (I)
2.	Explain how to determine if a contract has been formed, performed or breached, and if breached, the remedies available to the nonbreaching party. (I)
3.	Explain how an offer is made, how it can be terminated before acceptance, and how it can be accepted to form a contract. (I)
4.	Determine if parties to a contract have the legal capacity and free will to enter into a contract. (I)
5.	Compare and contrast a common law contract with a sales contract under Uniform Commercial Code (UCC) to include the liabilities and ethical obligations imposed on all parties. (I, II)
6.	Define and explain negotiable instruments in terms of their history and importance to society, and identify negotiable instruments and the liabilities and ethical obligations of the parties handling and processing them. (III)
7.	Determine how a writing becomes negotiable, how this negotiable instrument is transferred between parties, and what liabilities and ethical obligations are imposed on the parties transferring a negotiable instrument. (III)
8.	Compare and contrast a holder in due course of a negotiable instrument with the assignee of a nonnegotiable instrument. (III)
9.	Identify and define a document of title in terms of its usage and applications in commercial transactions. (IV)
10.	Compare and contrast a security interest in personal property with a mortgage on real property in terms of how each is created, the parties involved, the priorities held by each in a collection process, and the legal and ethical liabilities and obligations of the parties involved. (V)
11.	Identify and define a letter of credit in terms of its usage and application in commercial transactions. (VI)
12.	Explain the bank collection process in terms of the negotiable instruments process, the functions, the liabilities and ethical obligations of the parties involved, and the remedies available to those harmed. (VII)

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MCCCD Official Course Outline:
LAS206   19946-20074	Business Law (UCC)

I. Law of Contracts A. Fundamentals 1. Definition 2. Role of contracts in society 3. Sources of contract law a. Common law b. Uniform Commercial Code (UCC) 4. Basic contractual inquiries a. What is a valid contract? b. Defects or defenses c. Third party right d. Discharge or breach e. Remedies for a breach 5. Basic contract taxonomy a. Formality b. Explicitness c. Mutuality d. Enforceability e. Completion 6. Liabilities and ethical obligations of parties B. Agreement 1. Offer a. Terms: definite and certain b. Offer: definite and certain c. Present intent d. Communication to offer 2. Post-offer termination a. Counteroffer b. Rejection c. Lapse d. By operation of law 1. Illegality 2. Insanity or death 3. Destruction e. Revocation 1. General rule 2. Limitations and exceptions 3. Acceptance a. General rule b. When effective c. Silence as acceptance d. UCC 2-207 C. Consent (free will-knowledge) 1. Duress 2. Undue influence 3. Misrepresentation a. Fraud by types b. Fraud and materiality c. Reliance d. Opinion 4. Mistake a. Mutual b. Unilateral c. Latent ambiguity D. Consideration 1. Fundamentals a. Definition b. Legal detriment c. Adequacy of consideration 2. Specific consideration illustrations a. Settlement of disputed claim b. Pre-existing duty rule c. Illusory promise d. Accord and satisfaction e. Composition 3. Promises enforceable without consideration a. Past consideration b. Promissory Estoppel c. Under the UCC E. Capacity of parties 1. Minors 2. Mental incompetents 3. Intoxicated persons F. Statute of fraud 1. Type of required writing 2. UCC 2-201 3. Mitigating doctrines G. Third party rights 1. Third party beneficiary 2. Assignments 3. Delegations H. Performance 1. Discharge of contract duties a. Performance b. Conditions c. Nonperformance d. Anticipatory breach e. Impracticability of performance f. Frustration g. Others 2. Discharge of duties in general I. Remedies 1. Theory of contract remedies 2. Promisee's interests 3. Damages 4. Specific performance J. Consumer credit protection act (Truth in Lending) II. Sales A. Subject matter: scope of Article 2, UCC B. Formation C. Defenses to formation D. Modification of sales contracts E. Breach and discharge F. Remedies G. Liabilities and ethical obligations III. Commercial Paper (negotiable instruments) A. Fundamentals 1. Importance of commercial paper 2. History of commercial paper 3. Article 3, UCC B. Types of commercial paper and parties 1. Parties 2. Instruments a. Drafts b. Checks c. Notes d. Certificates of deposit C. Requirements of negotiability (UCC 3-104) 1. "Any writing" 2. "Signed by the maker or drawer" 3. "Contain an unconditional promise or order to pay" 4. "Sum certain" 5. "In money" 6. "No other promise, order, obligation or power" 7. "Payable on demand or at a definite time" 8. "Payable to order or to bearer" 9. Incompleteness and ambiguity D. Negotiation of commercial paper 1. Transfer 2. Liability of transferors 3. Methods of transfer and endorsement 4. Forged instrument E. Holder in due course doctrine 1. Holder in due course a. "For value" b. "Good faith" c. "Without notice" 2. Payee as holder in due course 3. The shelter rule 4. Defenses a. Personal b. Real 5. Consumer transactions and holders of due course F. Personal liability and discharge and holders of due course 1. Signature by authorized representative 2. Contract liability of parties 3. Warranty liability of transferor 4. Discharge from personal liability IV. Document of Title a. Article 7, UCC b. Definition and application c. Liabilities and ethical obligations V. Secured Transactions A. Fundamentals B. Personal property 1. Article 9, UCC 2. Security interest 3. Parties 4. Property subject to a security interest 5. Creation and perfection of a security interest 6. Priorities C. Liabilities and ethical obligations VI. Letter of Credit A. Defined B. Sources of law 1. International 2. Domestic: Article 5, UCC C. Liabilities and ethical obligations VII. Bank Deposits and Collections A. Article 4, UCC B. Bank collection process C. Relationships with customer 1. Payment of overdrafts 2. Payment of stale checks 3. Payment of deceased or incompetent's checks 4. Stop payment orders 5. Wrongful discharge 6. Customer's duties D. Liabilities and ethical obligations

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