Question 1

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 to sell involves the immediate transfer of cash to 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 to sell involves the immediate transfer of cash to the seller while a sale does not. A

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Title transfers at the same time in a sale and in a contract to sell.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

Sara 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 6

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 7

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

Question 8

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 9

Land is generally considered as intangible personal property.

Accepted Answer

A) True 
 B)False

Question 10

The term "movable personal property" as used in the Uniform Commercial Code (UCC), does not apply to real property or intangible property.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) A sublets an apartment for the summer from B. 
B) A pays B to repair his car. 
C) A buys a spare USB charger for his phone. 
D) A purchases the digital license to new software for his computer. 
A) A sublets an apartment for the summer from B. 
B) A pays B to repair his car. 
C) A buys a spare USB charger for his phone. 
D) A purchases the digital license to new software for his computer.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The consideration in a sales contract is must always be expressly stated as money or money's worth.

Accepted Answer

A) True 
 B)False

Question 14

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) They are not yet existing. 
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) They are not yet existing. 
D) Identified goods refer to goods that are yet to be manufactured by their seller. ​

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) The convention applies to contracts where the buyer and seller have places of business in different states of the same country. 
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 only covers contracts between two parties if their operations are in different countries that have adopted the convention. 
A) The convention applies to contracts where the buyer and seller have places of business in different states of the same country. 
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 only covers contracts between two parties if their operations are in different countries that have adopted the convention.

Question 17

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

Accepted Answer

A bill of saleprovides written evidence

Question 18

How are sales contracts handled when terms are missing?

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) If the price term is not expressly stated, it will be held to be the reasonable price for the same goods in the market. 
C) When a contract includes the supply of both services and goods, the contract is considered to be a contract for the sale of goods only if the terms expressly state it is subject to the UCC. 
D) If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the goods must be supplied at whatever price the seller sets. 
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) If the price term is not expressly stated, it will be held to be the reasonable price for the same goods in the market. 
C) When a contract includes the supply of both services and goods, the contract is considered to be a contract for the sale of goods only if the terms expressly state it is subject to the UCC. 
D) If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the goods must be supplied at whatever price the seller sets.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The United Nations Convention on Contracts for the International Sale of Goods (CISG)does not apply to personal consumer transactions.

Accepted Answer

A) True 
 B)False

Exam 16: Sales of Personal Property

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

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

Title transfers at the same time in a sale and in a contract to sell.

Which of the following statements is true of illegal sales?

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

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

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

Land is generally considered as intangible personal property.

The term "movable personal property" as used in the Uniform Commercial Code (UCC), does not apply to real property or intangible property.

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

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

The consideration in a sales contract is must always be expressly stated as money or money's worth.

Which of the following is true of identified goods?

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

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

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

How are sales contracts handled when terms are missing?

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

The United Nations Convention on Contracts for the International Sale of Goods (CISG)does not apply to personal consumer transactions.

Introduction to Law

Courts and Court Procedures

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 Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

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 Trust

Filters

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

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

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