Question 1

An oral contract can be enforced if the buyer has made a partial payment on the contract.

Accepted Answer

A) True 
 B)False  False

Question 2

A(n) _____ is a sale in which a seller or an agent of the seller orally asks for bids on goods and orally accepts the highest bid.

Accepted Answer

A)  bidding 
B)  escrow 
C)  auction 
D)  collusion 
A)  bidding 
B)  escrow 
C)  auction 
D)  collusion C

Question 3

If a bid is made while the hammer is falling in acceptance of a prior bid, the auctioneer has the option to reopen the bid.

Accepted Answer

A) True 
 B)False  True

Question 4

The terms of writing states that the writing need not indicate that a sale or contract to sell has been made.

Accepted Answer

A) True 
 B)False

Question 5

Macy's, an auction house, was slated to put up ten paintings for auction. During the course of the auction, the auctioneer announced that three of these paintings can be recalled at the discretion of the auction house. In such a scenario, the seven remaining paintings will be known as goods offered _____.

Accepted Answer

A)  without terms 
B)  without reserve 
C)  with terms 
D)  with reserve 
A)  without terms 
B)  without reserve 
C)  with terms 
D)  with reserve

Question 6

No writing is required in the case of nonresellable goods.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following descriptions best fits the term "receipt"?

Accepted Answer

A)  It is the acknowledgement of a purchase order by the seller. 
B)  It is the acknowledgement of an industry standard by the buyer and seller. 
C)  It is taking possession of the purchased goods by the buyer. 
D)  It is the assent of the seller to provide specific goods. 
A)  It is the acknowledgement of a purchase order by the seller. 
B)  It is the acknowledgement of an industry standard by the buyer and seller. 
C)  It is taking possession of the purchased goods by the buyer. 
D)  It is the assent of the seller to provide specific goods.

Question 8

Which of the following best describes the term "acceptance"?

Accepted Answer

A)  It is the assent of a buyer to become the owner of specific goods. 
B)  It is the assent of a seller to provide specific goods. 
C)  It is taking repossession of goods by the seller once they have been sold. 
D)  It is the acknowledgement of a fact during the course of the sale. 
A)  It is the assent of a buyer to become the owner of specific goods. 
B)  It is the assent of a seller to provide specific goods. 
C)  It is taking repossession of goods by the seller once they have been sold. 
D)  It is the acknowledgement of a fact during the course of the sale.

Question 9

Goods that are specifically made for the buyer and are of such an unusual nature that they are not suitable for trade in the ordinary course of the seller's business are called _____.

Accepted Answer

A)  auction goods 
B)  nonresellable goods 
C)  resellable goods 
D)  speciality goods 
A)  auction goods 
B)  nonresellable goods 
C)  resellable goods 
D)  speciality goods

Question 10

When a person makes a bid to start the sale, the auctioneer cannot refuse to accept this as a starting bid.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of an auction sale?

Accepted Answer

A)  A sale by auction for any amount is not valid if it is made orally. 
B)  When an auctioneer makes and signs a memorandum of the sale, it binds only the bidder. 
C)  Goods can only be offered for sale without reserve. 
D)  There is no contract until and unless an auctioneer accepts a bidder's offer. 
A)  A sale by auction for any amount is not valid if it is made orally. 
B)  When an auctioneer makes and signs a memorandum of the sale, it binds only the bidder. 
C)  Goods can only be offered for sale without reserve. 
D)  There is no contract until and unless an auctioneer accepts a bidder's offer.

Question 12

A signature can be electronic as on an e-mail, as well as be written or stamped.

Accepted Answer

A) True 
 B)False

Question 13

In an auction, the auctioneer is the one who makes the offer.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of the nature of writing required to satisfy the Statute of Frauds?

Accepted Answer

A)  The writing need not state the quantity of the goods involved. 
B)  The writing can be made before the making of the sale. 
C)  The writing can be in the form of letters, e-mails, and telegrams. 
D)  The writing cannot include typewritten signatures. 
A)  The writing need not state the quantity of the goods involved. 
B)  The writing can be made before the making of the sale. 
C)  The writing can be in the form of letters, e-mails, and telegrams. 
D)  The writing cannot include typewritten signatures.

Question 15

Purchase orders, cash register receipts, sales tickets, invoices, and similar papers satisfy the requirements as to a signature.

Accepted Answer

A) True 
 B)False

Question 16

Goods may be offered for sale in an auction with reserve or without reserve.

Accepted Answer

A) True 
 B)False

Question 17

Explain nonresellable goods.

Accepted Answer

Goods that are specifically made for the

Question 18

Writing is required when the person against whom enforcement of a sales contract is sought voluntarily admits, in the course of legal proceedings, to having made the sales contract.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of oral contract payments?

Accepted Answer

A)  In the case of part payment, an oral contract may be enforced for goods, for which payment has not been made and accepted. 
B)  An oral contract can be enforced if the buyer has made full payment on the contract. 
C)  Under the law of commercial paper, a check, or draft is an unconditional payment when delivered. 
D)  A check or promissory note tendered as payment, but refused by the seller, constitutes as an oral contract payment. 
A)  In the case of part payment, an oral contract may be enforced for goods, for which payment has not been made and accepted. 
B)  An oral contract can be enforced if the buyer has made full payment on the contract. 
C)  Under the law of commercial paper, a check, or draft is an unconditional payment when delivered. 
D)  A check or promissory note tendered as payment, but refused by the seller, constitutes as an oral contract payment.

Question 20

To satisfy the Statute of Frauds, a writing can be made only before the making of the sale.

Accepted Answer

A) True 
 B)False

Exam 17: Formalities of a Sale

An oral contract can be enforced if the buyer has made a partial payment on the contract.

A(n) _____ is a sale in which a seller or an agent of the seller orally asks for bids on goods and orally accepts the highest bid.

If a bid is made while the hammer is falling in acceptance of a prior bid, the auctioneer has the option to reopen the bid.

The terms of writing states that the writing need not indicate that a sale or contract to sell has been made.

No writing is required in the case of nonresellable goods.

Which of the following descriptions best fits the term "receipt"?

Which of the following best describes the term "acceptance"?

Goods that are specifically made for the buyer and are of such an unusual nature that they are not suitable for trade in the ordinary course of the seller's business are called _____.

When a person makes a bid to start the sale, the auctioneer cannot refuse to accept this as a starting bid.

Which of the following is true of an auction sale?

A signature can be electronic as on an e-mail, as well as be written or stamped.

In an auction, the auctioneer is the one who makes the offer.

Which of the following is true of the nature of writing required to satisfy the Statute of Frauds?

Purchase orders, cash register receipts, sales tickets, invoices, and similar papers satisfy the requirements as to a signature.

Goods may be offered for sale in an auction with reserve or without reserve.

Explain nonresellable goods.

Writing is required when the person against whom enforcement of a sales contract is sought voluntarily admits, in the course of legal proceedings, to having made the sales contract.

Which of the following is true of oral contract payments?

To satisfy the Statute of Frauds, a writing can be made only before the making of the sale.

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

Sales of Personal Property

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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