Question 1

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true regarding types of common-carrier delivery contracts?

Accepted Answer

A)  Common-carrier delivery contracts include transfer contracts but not origin,shipment,or destination contracts.
B)  Common-carrier delivery contracts include destination contracts,but not origin,transfer,or shipment contracts.
C)  Common-carrier delivery contracts include origin and shipment contracts,but not destination or transfer contracts.
D)  Common-carrier delivery contracts include origin and transfer contracts,but not destination contracts.
E)  Common-carrier delivery contracts include origin and destination contracts,but not transfer contracts.F) None of the above
G) B) and D)

Question 3

In cases where a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or a later time by the seller's delivery?

Accepted Answer

A)  A complex delivery contract
B)  A voidable delivery contract
C)  An average delivery contract
D)  A simple delivery contract
E)  An acknowledged saleF) C) and D)
G) A) and B)

Question 5

Discuss when title and risk of loss pass to the buyer in a goods-in-bailment contract when a)the seller has a negotiable document of title b)the seller has a nonnegotiable document of title and
c)the seller has a contract or other instrument showing ownership that is not a negotiable or nonnegotiable document of title.

Accepted Answer

a)If the seller has a negotiable documen...

Question 6

Because the contract was ambiguous about whether the seller had the duty to deliver the goods to either the common carrier's hands or all the way to Ivan's home,what type of contract is presumed?

Accepted Answer

A)  Voidable
B)  Transit
C)  Location
D)  Origin
E)  DestinationF) None of the above
G) A) and B)

Question 7

Which of the following is true when the designation FAS is used?

Accepted Answer

A)  The buyer,at the buyer's expense,delivers the goods alongside the ship before the risk passes to the seller.
B)  The buyer,at the seller's expense,delivers the goods alongside the ship before the risk passes to the seller.
C)  The seller,at the buyer's expense,delivers the goods alongside the ship before the risk passes to the buyer.
D)  The seller,at the seller's expense,delivers the goods alongside the ship before the risk passes to the buyer.
E)  The common carrier,at the carrier's expense,delivers the goods alongside the ship before the risk passes to the buyer.F) B) and E)
G) D) and E)

Question 8

When does risk of loss transfer to the buyer in a simple delivery contract?

Accepted Answer

A)  When goods are identified to the contract
B)  When the buyer takes possession
C)  When the items are tendered
D)  When money is transferred
E)  One day after goods are identified to the contractF) A) and D)
G) None of the above

Question 9

[Scuba Supplies] The Dive Shop ordered ten Mega2000 Diving Tanks,ten SuperSlick wetsuits,and ten pairs of Awesome swim fins from ScubaCo under a destination contract.The tanks were scheduled to be delivered first,and the remaining items would arrive the following day.Upon the first delivery,The Dive Shop noticed that ScubaCo sent ten Mega500 Diving Tanks,an inferior model.The Dive Shop's owner called ScubaCo and was told that ScubaCo had sold out of the Mega2000 model,but the Mega 500 was the same price,was "pretty much the same",and The Dive Shop had to pay for the order or it would be in breach of contract.The following day,ScubaCo checked the remainder of the order which consisted of the wetsuits and fins and verified it to be correct.It delivered the remainder of the order,however,The Dive Shop refused delivery.On the way to its next delivery,the carrier truck ran off the side of the road and the goods were lost.
-Is ScubaCo correct that The Dive Shop must accept the ten Mega500 tanks?

Accepted Answer

A)  Yes,because they are conforming goods
B)  No,The Dive Shop can either accept the nonconforming goods or reject the goods subject to the seller's curing the deficiency in the goods and reject them if no cure is possible.
C)  Yes,because,even though they are not conforming goods,they are substantially the same
D)  No,The Dive Shop can cure the deficiency in the goods on its own
E)  No,The Dive Shop's only recourse is to demand the conforming goods be providedF) All of the above
G) B) and E)

Question 10

Which of the following references goods that are in some kind of storage so the seller cannot transfer physical possession of them?

Accepted Answer

A)  General to contract
B)  Stored in transit
C)  Stored pending payment
D)  Goods in transit
E)  Goods in bailmentF) D) and E)
G) A) and B)

Question 11

The absence of the words "to the order of" indicates which of the following,in a goods-in-bailment contract?

Accepted Answer

A)  A shipment contract
B)  An origin contract
C)  A negotiable document
D)  A nonnegotiable document
E)  Nothing,there is no such thing as a goods-in-bailment contractF) C) and D)
G) A) and B)

Question 12

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is not a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

Accepted Answer

A)  Loss is proportioned 25% to the buyer and 75% to the seller
B)  Loss is proportioned 50% to the buyer and 50% to the seller
C)  Loss is proportioned 75% to the buyer and 25% to the seller
D)  The buyer
E)  The sellerF) B) and E)
G) A) and D)

Question 13

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Accepted Answer

A)  If a seller does not provide goods as described in a contract,the buyer may reject the goods subject to the seller's curing the deficiency in the goods,but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible.
B)  If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages,but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible.
C)  If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,or the buyer may reject the goods subject to the seller's curing the deficiency in the goods;but the buyer may not simply reject the goods.
D)  If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods,but the buyer may not reject the goods subject to the seller's curing the deficiency.
E)  If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,reject the goods subject to the seller's curing the deficiency in the goods,or reject the goods if no cure is possible.F) C) and E)
G) B) and E)

Question 14

Toula is buying a delivery vehicle for her business and it will be available for her to pick up on Tuesday.On Monday,the day before her car is ready,Toula meets with her banker to complete the application for a small business loan.Can Toula use the delivery truck as collateral for the loan?

Accepted Answer

A)  Yes,because she has a right to encumber the goods
B)  Yes,because the right to encumber goods has nothing to do with title.
C)  No,because having title does not mean that one can encumber the goods.
D)  No,because she does not yet have title to the delivery truck
E)  No,because risk of loss has not yet passed to herF) All of the above
G) C) and E)

Question 15

Who bears the risk of loss for the second delivery?

Accepted Answer

A)  ScubaCo because in a destination contract,the risk remains with the seller.
B)  The Dive Shop,because they had no right to refuse delivery of conforming goods
C)  The Dive Shop,because the risk of loss transferred to the buyer on delivery
D)  ScubaCo because it had previously delivered nonconforming goods
E)  Both parties share the risk of loss equallyF) A) and B)
G) A) and C)

Question 16

Are Mavis' concerns about a lack of agreement between Singapore and Indonesia accurate?

Accepted Answer

A)  No,both countries have signed an agreement that aims to halt piracy.
B)  Yes,there are no anti-piracy agreements between the two countries.
C)  Yes,there are no agreements between the two countries that affect shipping.
D)  Yes,even though there are agreements between the two countries,they have taken no steps to halt piracy.
E)  No,although the countries have not signed an agreement that aims to halt piracy,there are no risks involved in shipping on international waters.F) A) and C)
G) A) and B)

Question 17

Assuming Adler must bear the risk of loss of his sculpture,if he sues the ship to recover damages,would the lawsuit likely be dismissed?

Accepted Answer

A)  Yes,because Adler bears the risk of loss according to his contract with Juno.
B)  No,because Adler had an insurable and special interest and,thus,has standing to sue.
C)  No,because the ship was not at fault.
D)  Yes,because Adler did not have an insurance interest in the sculpture.
E)  Yes,because the ship was not a party to the contract.F) A) and C)
G) A) and B)

Question 18

Identify and describe the five situations under which a buyer receives only a voidable title in a sale.

Accepted Answer

A buyer gets only voidable title if 1)th...

Question 19

The term tender of delivery refers to the moment goods are picked up by the buyer.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following was the result in the text's case involving Tempur-Pedic,a mattress manufacturer,which sought to stop the sale of mattresses it donated to a charity for Hurricane Katrina victims and to recover mattresses sold by the charity involved?

Accepted Answer

A)  That the charity had void title under the UCC and could not transfer good title,and that Tempur-Pedic could recover all the mattresses both from the charity and from third-party purchasers.
B)  That under the UCC,Tempur-Pedic was entitled to a temporary restraining order because of the likelihood that it could show at trial that its donated mattresses were not sold to a good-faith purchaser.
C)  That the UCC did not apply because a charity was involved and that Tempur-Pedic was entitled to a temporary restraining order pending trial because of the likelihood that it would prevail based on fraudulent transactions.
D)  That under the UCC,Tempur-Pedic would lose because the mattresses were sold to a good-faith purchaser for value.
E)  That the UCC did not apply because a charity was involved and that Tempur-Pedic would lose because movable goods were involved.F) A) and E)
G) C) and D)

Exam 22: Title,risk of Loss,and Insurable Interest

When does risk of loss transfer to the buyer in a simple delivery contract?

Correct Answer
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Identify and describe the five situations under which a buyer receives only a voidable title in a sale.

Correct Answer
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A buyer gets only voidable title if 1)th...
View Answer

The absence of the words "to the order of" indicates which of the following,in a goods-in-bailment contract?

Correct Answer
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In cases where a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Correct Answer
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Are Mavis' concerns about a lack of agreement between Singapore and Indonesia accurate?

Correct Answer
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Which of the following is true when the designation FAS is used?

Correct Answer
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Who bears the risk of loss for the second delivery?

Correct Answer
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Toula is buying a delivery vehicle for her business and it will be available for her to pick up on Tuesday.On Monday,the day before her car is ready,Toula meets with her banker to complete the application for a small business loan.Can Toula use the delivery truck as collateral for the loan?

Correct Answer
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If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct Answer
verified

Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or a later time by the seller's delivery?

Correct Answer
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Correct Answer
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Correct Answer
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The term tender of delivery refers to the moment goods are picked up by the buyer.

Correct Answer
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Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Correct Answer
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Correct Answer
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a)If the seller has a negotiable documen...
View Answer

Which of the following was the result in the text's case involving Tempur-Pedic,a mattress manufacturer,which sought to stop the sale of mattresses it donated to a charity for Hurricane Katrina victims and to recover mattresses sold by the charity involved?

Correct Answer
verified

Because the contract was ambiguous about whether the seller had the duty to deliver the goods to either the common carrier's hands or all the way to Ivan's home,what type of contract is presumed?

Correct Answer
verified

Assuming Adler must bear the risk of loss of his sculpture,if he sues the ship to recover damages,would the lawsuit likely be dismissed?

Correct Answer
verified

Which of the following is true regarding types of common-carrier delivery contracts?

Correct Answer
verified

Which of the following references goods that are in some kind of storage so the seller cannot transfer physical possession of them?

Correct Answer
verified

Exam 22: Title,risk of Loss,and Insurable Interest

When does risk of loss transfer to the buyer in a simple delivery contract?

Correct AnswerverifiedShow Answer

Identify and describe the five situations under which a buyer receives only a voidable title in a sale.

Correct AnswerverifiedA buyer gets only voidable title if 1)th...View AnswerShow Answer

The absence of the words "to the order of" indicates which of the following,in a goods-in-bailment contract?

Correct AnswerverifiedShow Answer

In cases where a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Correct AnswerverifiedShow Answer

Are Mavis' concerns about a lack of agreement between Singapore and Indonesia accurate?

Correct AnswerverifiedShow Answer

Which of the following is true when the designation FAS is used?

Correct AnswerverifiedShow Answer

Who bears the risk of loss for the second delivery?

Correct AnswerverifiedShow Answer

Toula is buying a delivery vehicle for her business and it will be available for her to pick up on Tuesday.On Monday,the day before her car is ready,Toula meets with her banker to complete the application for a small business loan.Can Toula use the delivery truck as collateral for the loan?

Correct AnswerverifiedShow Answer

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct AnswerverifiedShow Answer

Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or a later time by the seller's delivery?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The term tender of delivery refers to the moment goods are picked up by the buyer.

Correct AnswerverifiedShow Answer

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Correct AnswerverifiedShow Answer

Correct Answerverifieda)If the seller has a negotiable documen...View AnswerShow Answer

Which of the following was the result in the text's case involving Tempur-Pedic,a mattress manufacturer,which sought to stop the sale of mattresses it donated to a charity for Hurricane Katrina victims and to recover mattresses sold by the charity involved?

Correct AnswerverifiedShow Answer

Because the contract was ambiguous about whether the seller had the duty to deliver the goods to either the common carrier's hands or all the way to Ivan's home,what type of contract is presumed?

Correct AnswerverifiedShow Answer

Assuming Adler must bear the risk of loss of his sculpture,if he sues the ship to recover damages,would the lawsuit likely be dismissed?

Correct AnswerverifiedShow Answer

Which of the following is true regarding types of common-carrier delivery contracts?

Correct AnswerverifiedShow Answer

Which of the following references goods that are in some kind of storage so the seller cannot transfer physical possession of them?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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A buyer gets only voidable title if 1)th...
View Answer

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a)If the seller has a negotiable documen...
View Answer

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