Question 1

Berman sold her business, including merchandise and fixtures, to Curran. This is a(n)

Accepted Answer

A)  present sale. 
B)  sale on approval. 
C)  bulk transfer. 
D)  auction. 
A)  present sale. 
B)  sale on approval. 
C)  bulk transfer. 
D)  auction.

Question 2

A buyer can require a seller to provide a ____________________ to ensure that the seller possesses the title to the goods.

Accepted Answer

The answer of A buyer can require a seller to...

Question 3

For a contract for the sale of goods to be considered a present sale, the

Accepted Answer

A)  goods must be considered future goods. 
B)  goods must be physically in existence and identifiable. 
C)  goods must be specially ordered. 
D)  sale must take place at the merchant's place of business. 
A)  goods must be considered future goods. 
B)  goods must be physically in existence and identifiable. 
C)  goods must be specially ordered. 
D)  sale must take place at the merchant's place of business.

Question 4

A contract for the sale of goods is either a present sale or a contract to sell.

Accepted Answer

A) True 
 B)False

Question 5

Goods become identified when the seller and the buyer decide on the exact goods to be sold.

Accepted Answer

A) True 
 B)False

Question 6

Martin leaves a suit purchased through a catalog at a tailor shop for alterations. The tailor shop also sold men's suits. While the suit was hanging on a rack waiting to be repaired, the tailor accidentally sold Martin's suit to McCabe, who had no knowledge that the suit belonged to someone else. Martin can recover from

Accepted Answer

A)  Mc Cabe for the return of the suit but cannot recover from the tailor shop because the tailor made an honest mistake. 
B)  the tailor shop for the purchase price of the suit but cannot recover from McCabe since McCabe had no knowledge that the shoes were owned by Martin. 
C)  both the tailor shop and McCabe. 
D)  none of these. 
A)  Mc Cabe for the return of the suit but cannot recover from the tailor shop because the tailor made an honest mistake. 
B)  the tailor shop for the purchase price of the suit but cannot recover from McCabe since McCabe had no knowledge that the shoes were owned by Martin. 
C)  both the tailor shop and McCabe. 
D)  none of these.

Question 7

If the terms of a contract make it difficult to determine whether a particular transaction is a sale on approval or a sale on return, it will be considered a sale or return if the buyer took the goods

Accepted Answer

A)  primarily for use rather than for resale. 
B)  primarily for resale rather than for use. 
C)  on COD terms. 
D)  in bulk. 
A)  primarily for use rather than for resale. 
B)  primarily for resale rather than for use. 
C)  on COD terms. 
D)  in bulk.

Question 8

Rogers was induced by fraud to sell a car to Sutter. Sutter resold the car to Andrews, who did not know of the fraud. Was Rogers entitled to void the sale and recover the car from Andrews?

Accepted Answer

No. Sutter had a voidable titl

Question 9

Mendon took her diamond ring to a jeweler to have it resized and arranged to pick it up in three days. When she returned, she discovered that a salesperson had sold her ring to a customer who was looking for a used diamond. To legally reclaim the ring from the customer, Mendon would need to prove that the

Accepted Answer

A)  customer was not satisfied with the ring. 
B)  salesperson was dishonest. 
C)  customer did not purchase the ring in good faith. 
D)  customer failed to inform the salesperson that the ring was not for resale. 
A)  customer was not satisfied with the ring. 
B)  salesperson was dishonest. 
C)  customer did not purchase the ring in good faith. 
D)  customer failed to inform the salesperson that the ring was not for resale.

Question 10

The UCC, Article 2,

Accepted Answer

A)  places increased emphasis on the concept of title. 
B)  places less emphasis on the concept of title. 
C)  eliminates the concept of title. 
D)  none of these. 
A)  places increased emphasis on the concept of title. 
B)  places less emphasis on the concept of title. 
C)  eliminates the concept of title. 
D)  none of these.

Question 11

In a sale of goods, risk of loss is generally more important than when title passes from seller to buyer.

Accepted Answer

A) True 
 B)False

Question 12

A bill of sale is proof of ownership.

Accepted Answer

A) True 
 B)False

Question 13

Michaels purchased a desk from Erwin who is not in the business of selling furniture. Erwin tendered delivery of the desk after receiving payment in full from Michaels. Michaels told Erwin that she would be unable to take possession of the desk until the next day. In the meantime, thieves stole the desk from Erwin's garage before Michaels had a chance to take possession. The risk of loss

Accepted Answer

A)  passed to Michaels when Erwin tendered delivery. 
B)  passed to Michaels at the time payment in full was made. 
C)  remained with Erwin until Michaels took possession of the desk. 
D)  remained with Erwin for a reasonable time after Michaels took possession of the desk. 
A)  passed to Michaels when Erwin tendered delivery. 
B)  passed to Michaels at the time payment in full was made. 
C)  remained with Erwin until Michaels took possession of the desk. 
D)  remained with Erwin for a reasonable time after Michaels took possession of the desk.

Question 14

If the seller and buyer do not specify when title and risk of loss pass, the rules of the ____________________ apply.

Accepted Answer

The answer of If the seller and buyer do not...

Question 15

Generally, a buyer obtains no better title to goods than the seller had.

Accepted Answer

A) True 
 B)False

Question 16

The ____________________ must pay any expenses connected with the return of goods to the seller in a sale or return.

Accepted Answer

The answer of The ____________________ must pay any expenses connected...

Question 17

In some sales of goods, the seller is required to ship the goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 18

Under the common law the location of title formed the basis of the sale of goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 19

If goods delivered to a buyer are intended to be resold to consumers, the transaction is considered to be a sale on approval.

Accepted Answer

A) True 
 B)False

Question 20

On December 15, Maria bought a snow blower from the Tripod Hardware Store, terms thirty days. After the sale had been made, Tripod agreed to deliver the snow blower to Maria's house the following day. Risk of loss passed to Maria

Accepted Answer

A)  on December 15. 
B)  on December 16. 
C)  on January 15. 
D)  when the bill was fully paid. 
A)  on December 15. 
B)  on December 16. 
C)  on January 15. 
D)  when the bill was fully paid.

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

Berman sold her business, including merchandise and fixtures, to Curran. This is a(n)

A buyer can require a seller to provide a ____________________ to ensure that the seller possesses the title to the goods.

For a contract for the sale of goods to be considered a present sale, the

A contract for the sale of goods is either a present sale or a contract to sell.

Goods become identified when the seller and the buyer decide on the exact goods to be sold.

If the terms of a contract make it difficult to determine whether a particular transaction is a sale on approval or a sale on return, it will be considered a sale or return if the buyer took the goods

Rogers was induced by fraud to sell a car to Sutter. Sutter resold the car to Andrews, who did not know of the fraud. Was Rogers entitled to void the sale and recover the car from Andrews?

The UCC, Article 2,

In a sale of goods, risk of loss is generally more important than when title passes from seller to buyer.

A bill of sale is proof of ownership.

If the seller and buyer do not specify when title and risk of loss pass, the rules of the ____________________ apply.

Generally, a buyer obtains no better title to goods than the seller had.

The ____________________ must pay any expenses connected with the return of goods to the seller in a sale or return.

In some sales of goods, the seller is required to ship the goods to the buyer.

Under the common law the location of title formed the basis of the sale of goods to the buyer.

If goods delivered to a buyer are intended to be resold to consumers, the transaction is considered to be a sale on approval.

On December 15, Maria bought a snow blower from the Tripod Hardware Store, terms thirty days. After the sale had been made, Tripod agreed to deliver the snow blower to Maria's house the following day. Risk of loss passed to Maria

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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