Question 1

A(n)________ includes any symbol,made with the intent to authenticate a writing.

Accepted Answer

A) seal 
B) informal note 
C) mark 
D) signature 
A) seal 
B) informal note 
C) mark 
D) signature

Question 2

Roberta receives a document of title for lumber she purchased.Even though she does not yet possess the lumber,the document transfers to her both title to the lumber and risk of loss for it.

Accepted Answer

A) True 
 B)False

Question 3

Big Choppers orally contracts with Jane to make a custom motorcycle for Jane for $30,000.When completed,Jane refuses to accept the motorcycle or pay for it.Discuss the validity of the oral contract.

Accepted Answer

A contract for the sale of goods where t

Question 4

In a contract with a merchant for which no delivery is required,risk of loss passes to the buyer when the buyer picks up the goods.

Accepted Answer

A) True 
 B)False

Question 5

On Saturday,Hussein purchases a sofa from Big Box Furniture Inc. ,who agrees to deliver the sofa without charge to Hussein at 3 p.m.the following Monday.Hussein forgets about the delivery and is not home at 3 p.m.on Monday when the Big Box delivery truck arrives.The delivery truck takes the sofa back to the Big Box store where it is destroyed in a fire that occurs at 9 p.m.Monday.Discuss the risk of loss in this case.

Accepted Answer

The parties in this case have entered in

Question 6

Which of the following is true of a firm offer?

Accepted Answer

A) It occurs when parties intend to be bound by a contract,but fail to mention the price. 
B) It occurs when a seller agrees to sell all it can produce to a particular buyer. 
C) It occurs when a merchant promises to hold an offer open without any consideration. 
D) It occurs when a buyer agrees to buy all its requirements from a particular seller. 
A) It occurs when parties intend to be bound by a contract,but fail to mention the price. 
B) It occurs when a seller agrees to sell all it can produce to a particular buyer. 
C) It occurs when a merchant promises to hold an offer open without any consideration. 
D) It occurs when a buyer agrees to buy all its requirements from a particular seller.

Question 7

Mike and Jane contract to purchase and sell $1,000,000 worth of computer chips to be manufactured in Japan and shipped to San Francisco.The contract is silent about the method of delivery.Mike asserts that delivery is by ship,which is customary in the computer chip industry,but Jane insists that delivery is by air,which is what a previous contract between Mike and Jane provided.Explain how a court will resolve this dispute.

Accepted Answer

When parties have dealt with each other

Question 8

If Company A in New York and Company B in Chicago sign a contract that states "FOB Chicago," it means the parties have agreed to a shipment contract and the title and risk of loss passes to Company B when they are placed in the carrier's possession in New York.So,for example,if the goods are destroyed in transit Company B bears the risk of loss.

Accepted Answer

A) True 
 B)False

Question 9

In an auction without reserve,the auctioneer must accept the highest bid.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is considered to be future goods?

Accepted Answer

A) Office furniture 
B) Stocks 
C) Fish in the sea 
D) Gasoline at a gas station 
A) Office furniture 
B) Stocks 
C) Fish in the sea 
D) Gasoline at a gas station

Question 11

In what respect is a bailment legally different from a sale?

Accepted Answer

A) Title does not transfer in a bailment. 
B) Title transfers in a bailment,but no price is involved. 
C) In both,there is a transfer of title,but in a bailment the title reverts to the bailor at the end of the bailment. 
D) In a sale,the title transfer includes all rights of ownership,but in a bailment,the title transfer includes limited rights of ownership. 
A) Title does not transfer in a bailment. 
B) Title transfers in a bailment,but no price is involved. 
C) In both,there is a transfer of title,but in a bailment the title reverts to the bailor at the end of the bailment. 
D) In a sale,the title transfer includes all rights of ownership,but in a bailment,the title transfer includes limited rights of ownership.

Question 12

Fish sold on contract,but not yet caught by a commercial fisherman's coop,are called goods.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

Accepted Answer

A) The CISG governs only the formation of a sales contract and the rights and duties that arise from it. 
B) The CISG is concerned with the validity of a contract that would be governed by other laws. 
C) The CISG applies to the liability of the seller for death or personal injury caused by the goods to any person. 
D) The CISG applies to auctions sales,sales of stocks,securities,negotiable instruments or money. 
A) The CISG governs only the formation of a sales contract and the rights and duties that arise from it. 
B) The CISG is concerned with the validity of a contract that would be governed by other laws. 
C) The CISG applies to the liability of the seller for death or personal injury caused by the goods to any person. 
D) The CISG applies to auctions sales,sales of stocks,securities,negotiable instruments or money.

Question 14

Downtown Construction Co.obtained possession on April 1 of a bulldozer from Bulldozer Sales Co.to use in Downtown's business with a right to return the bulldozer no later than June 1 with no obligation other than to pay for the fuel the bulldozer used.Downtown is owned by Alice who allows her fifteen-year-old son,Bob,to operate the bulldozer on May 1 on a Downtown job.Bob is inexperienced and wrecks the bulldozer.Explain who has the risk of loss.

Accepted Answer

This would qualify as a sale on approval

Question 15

Warren left his watch to be cleaned at a jewelry store.By mistake,a clerk sold the watch to Foley.Foley did not know that the watch rightfully belonged to Warren.Analyze the case.

Accepted Answer

When someone entrusts goods to a merchan

Question 16

Ralph,of Miami,Florida,ordered "100 red widgets" from Maria's business located in Seattle,Washington.Shipment was f.o.b.Seattle via Red Freight Co.By mistake Maria sent "100 green doodads" to Ralph.The shipment was destroyed when the Red Freight truck was involved in a traffic accident in Oklahoma City.Ralph had insurance coverage that includes "items purchased that are in transit." Explain whether Ralph or Maria has the risk of loss.

Accepted Answer

Since Maria sent goods that did not meet

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

A(n)________ includes any symbol,made with the intent to authenticate a writing.

Roberta receives a document of title for lumber she purchased.Even though she does not yet possess the lumber,the document transfers to her both title to the lumber and risk of loss for it.

Big Choppers orally contracts with Jane to make a custom motorcycle for Jane for $30,000.When completed,Jane refuses to accept the motorcycle or pay for it.Discuss the validity of the oral contract.

In a contract with a merchant for which no delivery is required,risk of loss passes to the buyer when the buyer picks up the goods.

Which of the following is true of a firm offer?

In an auction without reserve,the auctioneer must accept the highest bid.

Which of the following is considered to be future goods?

In what respect is a bailment legally different from a sale?

Fish sold on contract,but not yet caught by a commercial fisherman's coop,are called goods.

Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

Warren left his watch to be cleaned at a jewelry store.By mistake,a clerk sold the watch to Foley.Foley did not know that the watch rightfully belonged to Warren.Analyze the case.

Ethics,social Responsibility,and the Law

Sources of the Law

The Judicial Process and Cyber-Procedure

Alternative Dispute Resolution and Cyber-Adr

Criminal Law and Cybercrimes

Tort Law and Cybertorts

The Essentials of Contract Law

Offer,acceptance,and Mutual Assent

Consideration and Cyber-Payments

Capacity and Legality: the Final Elements

Written Contracts and Cyber-Commerce

Third Parties,discharge,and Remedies

Sales Contracts: Rights,duties,breach,and Warranties

Product Liability and Consumer Protection

The Nature of Negotiable Instruments

Holders in Due Course,defenses,and Liabilities

Bank-Depositor Relationships and Cyber-Banking

Insurance

Mortgages, land Contracts, and the 21st-Century Financial Crisis

Bankruptcy Law: in Theory, in History, and in Practice

Agency Law

Employment Law

Labor Law

The Business Entity: an Introduction

The Corporate Entity

Managing the Corporate Entity

Government Regulation of the Corporate Entity

Personal Property and Bailments

Real Property and Landlord and Tenant Law

Wills, advanced Directives, and Trusts

Professional Liability

Science, technology, and Law in the 21st Century

International Law and the New World Order

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