Question 1

In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately.

Accepted Answer

A) True 
 B)False  False

Question 2

The word "sale" as used in the Uniform Commercial Code (UCC), only applies to the sale of movable personal property.

Accepted Answer

A) True 
 B)False  True

Question 3

As per the UCC's definition of sale, in which of the following transactions has a sale taken place?

Accepted Answer

A)  A transfers the ownership of 50 acres of land to B. 
B)  A pays B to repair his car. 
C)  A buys a bicycle from B's shop. 
D)  A purchases the digital rights to a book that B wrote. 
A)  A transfers the ownership of 50 acres of land to B. 
B)  A pays B to repair his car. 
C)  A buys a bicycle from B's shop. 
D)  A purchases the digital rights to a book that B wrote. C

Question 4

Law considers a sale to be the same as a contract to sell.

Accepted Answer

A) True 
 B)False

Question 5

What is a bill of sale? What purpose does it serve?

Accepted Answer

A bill of sale provides written evidence

Question 6

If the individual goods of an illegal sale are separately priced, the sale is considered to be divisible.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Parties to international business contracts for the sale of goods may choose not to be governed by the convention. 
B)  The convention covers contracts between two parties even if their operations are in countries that have not adopted the convention. 
C)  The convention extensively covers personal consumer transactions in addition to business-to-business situations. 
D)  The convention also applies to contracts where the buyer and seller have places of business in different states of the same country. 
A)  Parties to international business contracts for the sale of goods may choose not to be governed by the convention. 
B)  The convention covers contracts between two parties even if their operations are in countries that have not adopted the convention. 
C)  The convention extensively covers personal consumer transactions in addition to business-to-business situations. 
D)  The convention also applies to contracts where the buyer and seller have places of business in different states of the same country.

Question 8

Land is generally considered as intangible personal property.

Accepted Answer

A) True 
 B)False

Question 9

When a contract to sell is signed by two parties, a sale is said to have taken place.

Accepted Answer

A) True 
 B)False

Question 10

The sale of goods constitutes the largest number of contracts formed in the country's economic system.

Accepted Answer

A) True 
 B)False

Question 11

In order to be the subject of a sale, goods must be existing.

Accepted Answer

A) True 
 B)False

Question 12

The consideration in a sales contract is known as the price.

Accepted Answer

A) True 
 B)False

Question 13

The difference between a sale and a contract to sell is that:

Accepted Answer

A)  a sale involves an immediate transfer of title from one party to another while a contract to sell does not. 
B)  a sale always requires the price to be paid up front by the seller while a contract does not. 
C)  a contract to sell involves the immediate transfer of title from one party to another while a sale does not. 
D)  a contract always requires the price to be paid up front by the seller while a sale does not. 
A)  a sale involves an immediate transfer of title from one party to another while a contract to sell does not. 
B)  a sale always requires the price to be paid up front by the seller while a contract does not. 
C)  a contract to sell involves the immediate transfer of title from one party to another while a sale does not. 
D)  a contract always requires the price to be paid up front by the seller while a sale does not.

Question 14

The consideration in a sales contract is always expressed in terms of money.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true of illegal sales?

Accepted Answer

A)  If a sale is divisible with a legal and illegal part, then neither part is enforceable by the law. 
B)  An indivisible sale with an illegal part makes the entire sale illegal. 
C)  If a sale involves several separate items but it is a lump-sum sale, then the sale is considered divisible. 
D)  If a party is completely innocent and has entered into an illegal sale, the court will not intervene to aid the party. 
A)  If a sale is divisible with a legal and illegal part, then neither part is enforceable by the law. 
B)  An indivisible sale with an illegal part makes the entire sale illegal. 
C)  If a sale involves several separate items but it is a lump-sum sale, then the sale is considered divisible. 
D)  If a party is completely innocent and has entered into an illegal sale, the court will not intervene to aid the party.

Question 16

Which of the following statements is true of sales contracts?

Accepted Answer

A)  If a sales contract does not state the price of goods that will be sold to the buyer, the contract is considered invalid. 
B)  A sales contract is ordinarily an express contract, but some of its terms may be implied. 
C)  When a contract includes the supply of both services and articles, the contract is always considered to be a contract for the sale of goods. 
D)  If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the contract is still binding on them. 
A)  If a sales contract does not state the price of goods that will be sold to the buyer, the contract is considered invalid. 
B)  A sales contract is ordinarily an express contract, but some of its terms may be implied. 
C)  When a contract includes the supply of both services and articles, the contract is always considered to be a contract for the sale of goods. 
D)  If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the contract is still binding on them.

Question 17

Sara's visited Ben's, a famous designer jewelry store, to buy herself a necklace. She browsed through the store's product catalogue and chose a particular model of diamond necklace. After she chose it, the manager at Ben's sent an order to the manufacturer to make the necklace. Which of the following statements is true at this point in the scenario?

Accepted Answer

A)  The necklace is an identified good. 
B)  Ben's holds the title to the diamond necklace. 
C)  Only a contract to sell has been made between Sara and Ben's. 
D)  The title to the necklace will pass to Sara as soon as the necklace is made. 
A)  The necklace is an identified good. 
B)  Ben's holds the title to the diamond necklace. 
C)  Only a contract to sell has been made between Sara and Ben's. 
D)  The title to the necklace will pass to Sara as soon as the necklace is made.

Question 18

A bill of sale cannot serve to prove ownership of a good.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following acts govern the sales of movable personal property?

Accepted Answer

A)  The Uniform Trade Secrets Act 
B)  The Uniform Consumer Leases 
C)  The Uniform Consumer Credit Code 
D)  The Uniform Commercial Code 
A)  The Uniform Trade Secrets Act 
B)  The Uniform Consumer Leases 
C)  The Uniform Consumer Credit Code 
D)  The Uniform Commercial Code

Question 20

Which of the following is true of identified goods?

Accepted Answer

A)  They are a type of existing goods. 
B)  They are goods in the designing stage. 
C)  Any contract purporting to sell identified goods is a contract to sell and not a sale. 
D)  Identified goods refer to goods that are yet to be manufactured by their seller. 
A)  They are a type of existing goods. 
B)  They are goods in the designing stage. 
C)  Any contract purporting to sell identified goods is a contract to sell and not a sale. 
D)  Identified goods refer to goods that are yet to be manufactured by their seller.

Exam 16: Sales of Personal Property

In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately.

The word "sale" as used in the Uniform Commercial Code (UCC), only applies to the sale of movable personal property.

As per the UCC's definition of sale, in which of the following transactions has a sale taken place?

Law considers a sale to be the same as a contract to sell.

What is a bill of sale? What purpose does it serve?

If the individual goods of an illegal sale are separately priced, the sale is considered to be divisible.

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

Land is generally considered as intangible personal property.

When a contract to sell is signed by two parties, a sale is said to have taken place.

The sale of goods constitutes the largest number of contracts formed in the country's economic system.

In order to be the subject of a sale, goods must be existing.

The consideration in a sales contract is known as the price.

The difference between a sale and a contract to sell is that:

The consideration in a sales contract is always expressed in terms of money.

Which of the following statements is true of illegal sales?

Which of the following statements is true of sales contracts?

A bill of sale cannot serve to prove ownership of a good.

Which of the following acts govern the sales of movable personal property?

Which of the following is true of identified goods?

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

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