Question 1

A sale exists after the buyer takes:

Accepted Answer

A)  the title to the goods. 
B)  the risk of loss on the goods. 
C)  an insurable interest in the goods. 
D)  a special property interest in the goods. 
A)  the title to the goods. 
B)  the risk of loss on the goods. 
C)  an insurable interest in the goods. 
D)  a special property interest in the goods.

Question 2

The bulk sales portion (Article 6) of the Code  requires buyers in a bulk sale to provide notice to the seller's creditors and to maintain a list of the seller's creditors and a schedule of property obtained in a bulk sale for six months after the bulk sale takes place.

Accepted Answer

A) True 
 B)False

Question 3

Goods must be both existing and identified to the contract before any interest in them can pass.

Accepted Answer

A) True 
 B)False

Question 4

How has the Code affected the rights of good faith purchasers with respect to minors?

Accepted Answer

The Code has expanded the rights of good

Question 5

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company. After the shirts were specially imprinted, but before they were mailed, Amanda called King Manufacturing to disavow the contract. The next day the sweatshirts were stolen. In this case:

Accepted Answer

A)  Amanda must pay the entire purchase price, because she breached the contract. 
B)  King Manufacturing will have to bear the entire loss, because it had not yet mailed the shirts. 
C)  Amanda must bear the entire loss, because the shirts were identified to the contract. 
D)  King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance. 
A)  Amanda must pay the entire purchase price, because she breached the contract. 
B)  King Manufacturing will have to bear the entire loss, because it had not yet mailed the shirts. 
C)  Amanda must bear the entire loss, because the shirts were identified to the contract. 
D)  King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance.

Question 6

Under the CISG:

Accepted Answer

A)  loss of, but not damage to, the goods after the risk of loss has passed to the buyer discharges the buyer from the obligation to pay the purchase price. 
B)  if the sales contract involves the carriage of the goods and the seller is not obligated to hand them over at a particular destination, risk of loss passes to the buyer when the goods are handed over to the first carrier. 
C)  if the sales contract does not involve carriage of the goods, the risk of loss passes to the buyer when the goods are tendered to him. 
D)  in a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. 
A)  loss of, but not damage to, the goods after the risk of loss has passed to the buyer discharges the buyer from the obligation to pay the purchase price. 
B)  if the sales contract involves the carriage of the goods and the seller is not obligated to hand them over at a particular destination, risk of loss passes to the buyer when the goods are handed over to the first carrier. 
C)  if the sales contract does not involve carriage of the goods, the risk of loss passes to the buyer when the goods are tendered to him. 
D)  in a finance lease, risk of loss is retained by the lessor and does not pass to the lessee.

Question 7

If the owner of goods entrusts them to a merchant, the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

Accepted Answer

A) True 
 B)False

Question 8

In a contract where the buyer is to pick up the goods at the seller's place of business and the seller is a merchant, the risk of loss passes to the buyer when the goods are tendered to the buyer.

Accepted Answer

A) True 
 B)False

Question 9

When one party breaches the sales contract, the Code places the risk of loss on that party.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a requirement of tender?

Accepted Answer

A)  putting conforming goods at the buyer's disposition. 
B)  giving notice to the buyer that the goods are available. 
C)  keeping the goods available for a reasonable period of time. 
D)  delivering the goods to the buyer. 
A)  putting conforming goods at the buyer's disposition. 
B)  giving notice to the buyer that the goods are available. 
C)  keeping the goods available for a reasonable period of time. 
D)  delivering the goods to the buyer.

Question 11

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

Accepted Answer

A)  if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss. 
B)  Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance. 
C)  Zach will bear the loss, whether he has insurance or not. 
D)  Kevin and Zach will equally share the loss. 
A)  if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss. 
B)  Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance. 
C)  Zach will bear the loss, whether he has insurance or not. 
D)  Kevin and Zach will equally share the loss.

Question 12

Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They are sent "F.O.B. Hartford, Connecticut," but they never arrive. What consequence?

Accepted Answer

A)  Inga has to pay anyway since it was a destination contract. 
B)  The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. 
C)  The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. 
D)  It cannot be determined who has the risk of loss from the information given. 
A)  Inga has to pay anyway since it was a destination contract. 
B)  The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. 
C)  The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. 
D)  It cannot be determined who has the risk of loss from the information given.

Question 13

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Accepted Answer

A)  a bailment 
B)  a sale on approval 
C)  a sale or return 
D)  entrusting to a merchant 
A)  a bailment 
B)  a sale on approval 
C)  a sale or return 
D)  entrusting to a merchant

Question 14

Louella purchases a steam cleaner from Alden for $120. She must believe Alden is the owner of or has the authority to sell the cleaner in order to receive the protection of a good faith purchaser.

Accepted Answer

A) True 
 B)False

Question 15

In Robinson v. Durham , the court found:

Accepted Answer

A)  the Robinsons were good faith purchasers for value when they bought the car for their business, and they had good title which they passed to Durham. 
B)  the Robinsons had a voidable title, and they passed good title to Durham, who was a good faith purchaser for value. 
C)  there was a breach of warranty of title between the Robinsons and Durham. 
D)  the Robinsons obtained no title from the thief, but they passed good title to Durham since he was a good faith purchaser for value. 
A)  the Robinsons were good faith purchasers for value when they bought the car for their business, and they had good title which they passed to Durham. 
B)  the Robinsons had a voidable title, and they passed good title to Durham, who was a good faith purchaser for value. 
C)  there was a breach of warranty of title between the Robinsons and Durham. 
D)  the Robinsons obtained no title from the thief, but they passed good title to Durham since he was a good faith purchaser for value.

Question 16

Article 6 of the Code does not:

Accepted Answer

A)  apply to sales of goods in the ordinary course of business. 
B)  define "bulk transfer" as any transfer in bulk and not in the ordinary course of business. 
C)  apply to merchants whose principal business is the sale of merchandise from stock. 
D)  include the transfer of a substantial part of equipment as a bulk transfer under any circumstances. 
A)  apply to sales of goods in the ordinary course of business. 
B)  define "bulk transfer" as any transfer in bulk and not in the ordinary course of business. 
C)  apply to merchants whose principal business is the sale of merchandise from stock. 
D)  include the transfer of a substantial part of equipment as a bulk transfer under any circumstances.

Question 17

If goods are sold and delivered to buyer with an option to return them, the risk is on the buyer until they are returned.

Accepted Answer

A) True 
 B)False

Question 18

In a sale on approval:

Accepted Answer

A)  possession, but not title, is transferred to the buyer for a stated period of time. 
B)  possession and title are transferred to the buyer for a stated period of time. 
C)  title, but not possession, is transferred to the buyer for a stated period of time. 
D)  neither title nor possession is transferred to the buyer for a stated period of time. 
A)  possession, but not title, is transferred to the buyer for a stated period of time. 
B)  possession and title are transferred to the buyer for a stated period of time. 
C)  title, but not possession, is transferred to the buyer for a stated period of time. 
D)  neither title nor possession is transferred to the buyer for a stated period of time.

Question 19

Explain what a trial sale is. Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types. Discuss transfer of title and risk or loss with each type of trial sale.

Accepted Answer

Some sales are made with the understandi

Question 20

A __________ is a delivery of possession of personal property to an agent for sale by the agent.

Accepted Answer

A)  sale on approval 
B)  consignment 
C)  sale or return 
D)  lease. 
A)  sale on approval 
B)  consignment 
C)  sale or return 
D)  lease.

Exam 21: Transfer of Title and Risk of Loss

A sale exists after the buyer takes:

The bulk sales portion (Article 6) of the Code requires buyers in a bulk sale to provide notice to the seller's creditors and to maintain a list of the seller's creditors and a schedule of property obtained in a bulk sale for six months after the bulk sale takes place.

Goods must be both existing and identified to the contract before any interest in them can pass.

How has the Code affected the rights of good faith purchasers with respect to minors?

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company. After the shirts were specially imprinted, but before they were mailed, Amanda called King Manufacturing to disavow the contract. The next day the sweatshirts were stolen. In this case:

Under the CISG:

If the owner of goods entrusts them to a merchant, the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

In a contract where the buyer is to pick up the goods at the seller's place of business and the seller is a merchant, the risk of loss passes to the buyer when the goods are tendered to the buyer.

When one party breaches the sales contract, the Code places the risk of loss on that party.

Which of the following is not a requirement of tender?

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They are sent "F.O.B. Hartford, Connecticut," but they never arrive. What consequence?

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Louella purchases a steam cleaner from Alden for $120. She must believe Alden is the owner of or has the authority to sell the cleaner in order to receive the protection of a good faith purchaser.

In Robinson v. Durham , the court found:

Article 6 of the Code does not:

If goods are sold and delivered to buyer with an option to return them, the risk is on the buyer until they are returned.

In a sale on approval:

Explain what a trial sale is. Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types. Discuss transfer of title and risk or loss with each type of trial sale.

A __________ is a delivery of possession of personal property to an agent for sale by the agent.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters