Question 1

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

Accepted Answer

A)  present sale. 
B)  COD sale. 
C)  contract to sell. 
D)  sale on approval. 
A)  present sale. 
B)  COD sale. 
C)  contract to sell. 
D)  sale on approval. C

Question 2

Jones, a merchant does not deliver merchandise to customers but instead requires customers to pick up the merchandise at his place of business. When does risk of loss pass?

Accepted Answer

A)  When the customer takes physical possession of the merchandise 
B)  When the contract is made 
C)  A reasonable time after the purchase is made but before delivery to the customer 
D)  When the buyer receives a negotiable document of title 
A)  When the customer takes physical possession of the merchandise 
B)  When the contract is made 
C)  A reasonable time after the purchase is made but before delivery to the customer 
D)  When the buyer receives a negotiable document of title A

Question 3

A(n) ____________________ sale occurs when a merchant sells all or a major part of the business assets.

Accepted Answer

bulk

Question 4

Under the UCC,

Accepted Answer

A)  risk of loss is placed on the party who has title. 
B)  risk of loss is always placed on the buyer. 
C)  risk of loss is always placed on the seller. 
D)  none of these. 
A)  risk of loss is placed on the party who has title. 
B)  risk of loss is always placed on the buyer. 
C)  risk of loss is always placed on the seller. 
D)  none of these.

Question 5

Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?

Accepted Answer

A)  The Arco Corporation will not suffer the loss because risk of loss passed to Rosco when the agreement was made. 
B)  Rosco will suffer the loss because risk of loss passed to him when the goods were delivered to the common carrier at Buffalo. 
C)  The Arco Corporation will suffer the loss because risk of loss did not pass to Rosco until the goods arrived at Salem. 
D)  Rosco will not suffer the loss because risk of loss did not pass to him until the goods were delivered to his door. 
A)  The Arco Corporation will not suffer the loss because risk of loss passed to Rosco when the agreement was made. 
B)  Rosco will suffer the loss because risk of loss passed to him when the goods were delivered to the common carrier at Buffalo. 
C)  The Arco Corporation will suffer the loss because risk of loss did not pass to Rosco until the goods arrived at Salem. 
D)  Rosco will not suffer the loss because risk of loss did not pass to him until the goods were delivered to his door.

Question 6

Roscoe, of Cleveland, Ohio, ordered twenty computers from the Rand Computer Corporation in St. Louis, Missouri, terms FOB St. Louis. The computers were damaged in transit from St. Louis to Cleveland. The loss is borne

Accepted Answer

A)  by Roscoe. 
B)  by Roscoe and Rand Computer Corporation. 
C)  50 percent by Roscoe and 50 percent by Rand Computer Corporation. 
D)  by Rand Computer Corporation. 
A)  by Roscoe. 
B)  by Roscoe and Rand Computer Corporation. 
C)  50 percent by Roscoe and 50 percent by Rand Computer Corporation. 
D)  by Rand Computer Corporation.

Question 7

Under Article 2 of the UCC which of the following factors is the most important in determining which party bears the risk of loss in a contract for the sale of goods

Accepted Answer

A)  how the goods were lost. 
B)  who has title to the goods. 
C)  the shipping terms in a sales contract. 
D)  the method of shipping the goods. 
A)  how the goods were lost. 
B)  who has title to the goods. 
C)  the shipping terms in a sales contract. 
D)  the method of shipping the goods.

Question 8

Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

Accepted Answer

A) True 
 B)False

Question 9

Under what circumstances can a person in possession of personal property transfer a better title than he/she has?

Accepted Answer

(a) a buyer with a voidable title can tr

Question 10

A contract to sell is a sale of identified goods.

Accepted Answer

A) True 
 B)False

Question 11

A sale on approval is a present sale.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

Accepted Answer

A)  both buyer and seller must be merchants. 
B)  the buyer must be purchasing the goods for resale. 
C)  risk of loss for the goods passes after the trial period is up. 
D)  title to goods passes to the buyer on the delivery of the goods to the buyer for trial purposes. 
A)  both buyer and seller must be merchants. 
B)  the buyer must be purchasing the goods for resale. 
C)  risk of loss for the goods passes after the trial period is up. 
D)  title to goods passes to the buyer on the delivery of the goods to the buyer for trial purposes.

Question 13

A merchant who has temporary possession of a customer's goods can pass on a(n) ____________________ title to a buyer of goods who purchases them without knowing that the goods do not belong to the merchant.

Accepted Answer

The answer of A merchant who has temporary possession of...

Question 14

A contract to sell involves ____________________.

Accepted Answer

The answer of A contract to sell involves ____________________....

Question 15

Minor saw an advertisement in a local newspaper that read: "Try a new X-Acto Electric Knife in your own home on approval for five days. No obligation to buy. Fill out the coupon and mail it in today." Minor mailed in the coupon and received the knife. She liked the knife and kept it past the approval period. Title and risk of loss legally passed to Minor

Accepted Answer

A)  when she mailed the coupon to the seller. 
B)  when the knife was delivered to her home. 
C)  when she kept the knife beyond the five-day period. 
D)  at no time, because approval was never given. 
A)  when she mailed the coupon to the seller. 
B)  when the knife was delivered to her home. 
C)  when she kept the knife beyond the five-day period. 
D)  at no time, because approval was never given.

Question 16

Goods that are not in existence and not yet identified are called

Accepted Answer

A)  personal goods. 
B)  unidentified goods. 
C)  future goods. 
D)  unsatisfactory goods. 
A)  personal goods. 
B)  unidentified goods. 
C)  future goods. 
D)  unsatisfactory goods.

Question 17

Jackson bought a typewriter from Kline for $100. Larson proved that the typewriter was stolen from him and demanded its return. Must Jackson do so?

Accepted Answer

Yes. A person in possession of

Question 18

When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Accepted Answer

A) True 
 B)False

Question 19

Title determines whether goods are the subject of a present sale or a contract to sell.

Accepted Answer

A) True 
 B)False

Question 20

Kim purchased a portable TV from Edgar without realizing that the TV was stolen. Kim received

Accepted Answer

A)  no title. 
B)  a valid title. 
C)  a voidable title. 
D)  formal title. 
A)  no title. 
B)  a valid title. 
C)  a voidable title. 
D)  formal title.

Exam 16: The Sales Contract: Transfer of Title and Risk of Loss

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

Jones, a merchant does not deliver merchandise to customers but instead requires customers to pick up the merchandise at his place of business. When does risk of loss pass?

A(n) ____________________ sale occurs when a merchant sells all or a major part of the business assets.

Under the UCC,

Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?

Roscoe, of Cleveland, Ohio, ordered twenty computers from the Rand Computer Corporation in St. Louis, Missouri, terms FOB St. Louis. The computers were damaged in transit from St. Louis to Cleveland. The loss is borne

Under Article 2 of the UCC which of the following factors is the most important in determining which party bears the risk of loss in a contract for the sale of goods

Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

Under what circumstances can a person in possession of personal property transfer a better title than he/she has?

A contract to sell is a sale of identified goods.

A sale on approval is a present sale.

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

A merchant who has temporary possession of a customer's goods can pass on a(n) ____________________ title to a buyer of goods who purchases them without knowing that the goods do not belong to the merchant.

A contract to sell involves ____________________.

Goods that are not in existence and not yet identified are called

Jackson bought a typewriter from Kline for $100. Larson proved that the typewriter was stolen from him and demanded its return. Must Jackson do so?

When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Title determines whether goods are the subject of a present sale or a contract to sell.

Kim purchased a portable TV from Edgar without realizing that the TV was stolen. Kim received

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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