Maricopa Community Colleges GBS206 19926-19945

Maricopa Community Colleges GBS206 19926-19945

Official Course Description: MCCCD Approval: 03/24/92
GBS206 19926-19945	LEC	3 Credit(s)	3 Period(s)
Business Law (UCC)
Examination of legal contracts and sales contracts under the Uniform Commercial Code (UCC), and other UCC provisions covering Commercial Paper, Secured Transactions, Documents of Title, Letters of Credit, and bank deposits and collections. Prerequisites: None.
Cross-References: LAS206

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MCCCD Official Course Competencies:

GBS206 19926-19945	Business Law (UCC)

1.	Define a contract and its role in society. (I)
2.	Classify contracts in terms of formality, explicitness, mutuality, enforceability, and completion. (I)
3.	Identify and explain basic contractual inquiries that must be made to determine if a contract has been formed, performed or breached, and if breached, the remedies available to the nonbreaching party. (I)
4.	Define and list the requirements of an offer, how an offer can be terminated before acceptance, and how it can be accepted to form a contract. (I)
5.	Evaluate contracts to determine if parties to that contract have the legal capacity to contract, give consideration, and enter it on their own free will. (I)
6.	Compare and contrast a Common Law contract with a sales contract formed under the Uniform Commercial Code. (I, II)
7.	Describe the rights and remedies available to the consumer under the Consumer Credit Protection Act of 1969. (I)
8.	Define and explain Commercial Paper in terms of its history and importance to society, and identify the various types of Commercial Paper and parties involved. (III)
9.	Explain how a writing becomes negotiable, how this negotiable instrument is transferred between parties, and the liabilities imposed on these parties transferring this negotiable instrument. (III)
10.	Compare and contrast the Holder in Due Course of a negotiable instrument with the assignee of a non-negotiable instrument. (III)
11.	Explain a Document of Title in terms of its usage and application in commercial transaction. (IV)
12.	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, and the priorities held by each in a collection process. (V)
13.	Describe a Letter of Credit in terms of its usage and application in commercial transaction. (VI)
14.	Explain the bank collection process in terms of the Negotiable Instruments process, the functions and liabilities of the various parties involved, and the remedies available to parties harmed by the process. (VII)

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MCCCD Official Course Outline:

GBS206 19926-19945	Business Law (UCC)

A. Introduction

2. Role of contracts in society

3. Sources of Contract Law

b. Uniform Commercial Code (UCC)

4. Basic contractual inquiries

a. Is there a valid contract

b. Any defects or defenses

c. Any third party rights

d. Contract discharge or breach

e. Remedies for breach

5. Basic contract taxonomy

b. Explicitness

d. Enforceability

a. Terms definite and certain

b. Offeree definite and certain

c. Present intent

d. Communication to offeree

2. Post-offer termination

a. Counteroffer

d. By operation of law

(1). Illegality

(2). Insanity/death

(3). Destruction

(1). General rule

(2). Limitations/exceptions

(3). Acceptance

(a). General rule

(b). When effective

(c). Silence as acceptance

C. Reality of consent (Free Will-Knowledge)

2. Undue influence

3. Misrepresentation

a. Fraud by types

b. Fraud and materiality

c. Latent ambiguity

D. Consideration

1. Introduction

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

3. Promises enforceable with consideration

a. Past consideration

b. Promissory estoppel

c. Under the UCC

E. Capacity of parties

2. Mental incompetents

3. Intoxicated persons

F. Statute of fraud

1. Type of required writing

3. Mitigating doctrines

G. Third party rights

1. Third party beneficiary

1. Discharge of contract duties

c. Nonperformance

d. Anticipatory breach

e. Impracticability of performance

2. Discharge of duties in general

1. Theory of contract remedies

2. Promisee's interests

4. Specific performance

J. Consumer credit protection act (Truth in Lending)

A. Subject matter--scopes of Article 2, UCC

C. Defenses to formation

D. Modification of sales contracts

E. Breach and discharge

A. Introduction and background

1. Importance of Commercial Paper

2. History of Commercial Paper

3. Article 3, UCC

B. Types of Commercial Paper and parties

d. Certificates of Deposit

C. Requirements of negotiability (UCC 3-104)

1. "Any writing"

2. "Signed by the maker or drawer"

3. "Contain and unconditional promise on order to pay"

4. "Sum certain"

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

2. Liability of transferors

3. Methods of transfer and indorsement

4. Forged instruments

E. Holder In Due Course Doctrine

1. Holder in Due Course

b. "Good faith"

c. "Without notice"

2. Payee as Holder in Due Course

3. The Shelter Rule

5. Consumer transactions and Holders of Due Course

F. Personal liability and discharge from liability

1. Signature by authorized representative

2. Contract liability of parties

3. Warranty liability of transferor

4. Discharge from personal liability

A. Article 7, UCC

B. Definition and application

A. Introduction

B. Personal property

1. Article 9, UCC

2. Security interest

4. Property subject to a security interest

5. Creation and perfection of a security interest

B. Sources of law

1. International

2. Domestic-Article 5, UCC

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

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