Exam 13: Sales Contracts: Formation,title,and Risk of Loss

When goods are sent f.o.b.shipment,the title and risk of loss pass to the:

Intermountain Medical Supply states by an e-mail to the CEO of ValleyCare Hospital that its offer to sell hemostats for the operating room for $35.00 each will be held open for 40 days.IMS's e-mail is a firm offer that requires a consideration to be legally binding.

A gift is legally considered the same as a sale of goods,since title passes in both a gift and a sale.

Samantha was looking for a certain shade of thread to complete her needlework on a tablecloth.At a local shop,however,she was unable to decide which of the five selected shades would be the closest match to the cloth.The shop owner allows Samantha to take the selected shades home and decide which one she would want to have.This is an example of which of the following?

Joshua,a merchant,promises in a signed writing to Pedro,a consumer,to hold an offer to sell goods open for five months without Pedro giving consideration in exchange.However,Joshua sells the goods to another consumer and Pedro sues him for breach of contract.Which of the following is true of this case?

If a person obtains property as a result of another's fraud,misrepresentation,mutual mistake,undue influence,or duress,the person is said to hold only:

The Convention on Contracts for the International Sale of Goods (CISG)requires a written contract for the sale of goods when the price exceeds $5,000.

________ is a method of commercial dealing that is commonly used in a particular field or industry.

Under the UCC,if a sale of goods contract offer between merchants is silent concerning the method of acceptance,it must be accepted by electronic means within 48 hours.

Which of the following is true of destination contracts?

MeatPackers,Inc.bought a new kind of refrigeration system from Coolit,Corp.for storage of its meats.As part of the contract,Coolit delivered the refrigeration system to the MeatPackers plant,installed it,set its temperature,and then monitored it for several hours to make sure it worked.Before they left,Coolit's technicians handed MeatPackers a bill of sale.Absent any other terms or conditions,MeatPackers,Inc.received title to Coolit's refrigeration system when:

Under the ________,an electronic signature is defined as "an electronic sound,symbol,or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record."

An automobile title certificate under the UCC has the legal status of a document of title.

Merchant A orally enters into a $1,000 contract with Merchant B.Merchant B will not be legally bound if she sends a confirmation,because Merchant A did not sign it,but she did object to it 3 days after she received the written confirmation.Merchant A sends out a conforming shipment the following week.The merchants have a binding agreement.

It is important to identify a ________ contract because it includes both goods and services.If the sale of goods dominates the contract,then it will be governed by ________;however,if services dominate the contract,then it will be governed by ________.

Starbucks Coffee contracts with Juan Valdez coffee farms to purchase "all the coffee beans Starbucks needs for the next twelve months." The parties have a(n)________ contract.

The seller is said to have a security interest in shipped goods if the agreement between the buyer and seller allows the seller to retain title after the goods are shipped.

Which of the following is true of oral contracts for the sale of goods of $500 or more?

Ross Plants Wholesalers contracts with Bi-Mart,Inc.for the sale of 24 pallets of fresh herbs and shrubs,to be delivered FOB to Bi-Mart in Emmett,Idaho.The 24 pallets are identified and put on a receiving dock.Before the shipper,EXpress Trucking,can pick them up and sign appropriate documentation,a fire destroys the plants causing a total loss.In this case,Ross Plants bears the risk of loss.

The CEO of Intermountain Medical Equipment and the VP of Purchasing at ValleyCare Hospital in Boise entered into an oral agreement to manufacture 15 oversized electric/pneumatic gurneys for the operating room at ValleyCare Hospital in Boise,at a cost of $6,000 each,total contract price of $90,000.The gurneys were made to the specific instructions of ValleyCare and could not be easily sold to another hospital.After the gurneys were manufactured,ValleyCare can refuse to take them on the grounds that the oral contract was unenforceable.