Question 1

Why type of title does a consignee have in the consignors property when the consignee takes possession of the goods?

Accepted Answer

A)  void 
B)  voidable 
C)  no title 
D)  restricted title 
E)  valid title 
A)  void 
B)  voidable 
C)  no title 
D)  restricted title 
E)  valid title

Question 2

In a shipment contract,the buyer bears the risk of loss of the goods during transportation.

Accepted Answer

A) True 
 B)False

Question 3

Which term can be used to create a shipment contract?

Accepted Answer

A)  F.O.B. place of destination 
B)  Ex-ship 
C)  No-arrival, no-sale 
D)  F.A.S. 
E)  Common carrier point of shipment 
A)  F.O.B. place of destination 
B)  Ex-ship 
C)  No-arrival, no-sale 
D)  F.A.S. 
E)  Common carrier point of shipment

Question 4

Tom purchases $300 worth of goods from Nancy.Nancy lives in on a small remote island that is part of the Bahamas.The goods will first travel by boat from the Bahamas to Florida and then by air to Tom.The contract states that the shipping terms are F.A.S.(Illinois)port of shipment.Nancy takes the goods down to the dock and places them on the dock next to a ship called Illinois.Nancy does not insure the goods.Nancy does not make sure the goods are placed on the ship.The goods are lost.Tom sues Nancy for his $300 back,who wins?

Accepted Answer

A)  Tom wins because Nancy did not make sure the goods were placed on the ship. 
B)  Tom wins because Nancy held the risk of loss until the goods were delivered to Tom. 
C)  Tom wins because Nancy has a duty to send Tom a replacement order or refund his money. 
D)  Tom wins because Nancy was under an obligation to insure the goods and she didn't. 
E)  Nancy wins because Tom bears the risk of loss once the goods are placed on the dock of the Illinois ship. 
A)  Tom wins because Nancy did not make sure the goods were placed on the ship. 
B)  Tom wins because Nancy held the risk of loss until the goods were delivered to Tom. 
C)  Tom wins because Nancy has a duty to send Tom a replacement order or refund his money. 
D)  Tom wins because Nancy was under an obligation to insure the goods and she didn't. 
E)  Nancy wins because Tom bears the risk of loss once the goods are placed on the dock of the Illinois ship.

Question 5

In Lindholm v.Brandt,when Malmberg sold Lindholm's "Red Elvis" to Brandt,the court found that:

Accepted Answer

A)  Malmberg had stolen the artwork, so he couldn't pass his void title to Brandt. 
B)  Malmberg had stolen the artwork and could pass the void title to Brandt because Brandt qualified as a good faith purchaser. 
C)  Malmberg had been entrusted with the artwork but had a void title because he breached the terms of the entrustment so he couldn't pass good title to Brandt. 
D)  Malmberg had been entrusted with the artwork and could pass the void title to Brandt because Brandt qualified as a good faith purchaser. 
E)  Malmberg had been entrusted with the artwork and could pass the voidable title to Brandt because Brandt qualified as a good faith purchaser. 
A)  Malmberg had stolen the artwork, so he couldn't pass his void title to Brandt. 
B)  Malmberg had stolen the artwork and could pass the void title to Brandt because Brandt qualified as a good faith purchaser. 
C)  Malmberg had been entrusted with the artwork but had a void title because he breached the terms of the entrustment so he couldn't pass good title to Brandt. 
D)  Malmberg had been entrusted with the artwork and could pass the void title to Brandt because Brandt qualified as a good faith purchaser. 
E)  Malmberg had been entrusted with the artwork and could pass the voidable title to Brandt because Brandt qualified as a good faith purchaser.

Question 6

A seller and buyer may not set their own terms for passage of title and must follow the UCC rules for passage of title.

Accepted Answer

A) True 
 B)False

Question 7

Under the entrustment rule,a merchant can transfer title in goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 8

Both the buyer and seller of goods can have an insurable interest in the same goods at the same time.

Accepted Answer

A) True 
 B)False

Exam 17: Performance of Sales, Leases and E-Contracts

Why type of title does a consignee have in the consignors property when the consignee takes possession of the goods?

In a shipment contract,the buyer bears the risk of loss of the goods during transportation.

Which term can be used to create a shipment contract?

In Lindholm v.Brandt,when Malmberg sold Lindholm's "Red Elvis" to Brandt,the court found that:

A seller and buyer may not set their own terms for passage of title and must follow the UCC rules for passage of title.

Under the entrustment rule,a merchant can transfer title in goods to a buyer in the ordinary course of business.

Both the buyer and seller of goods can have an insurable interest in the same goods at the same time.

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