Question 1

A negotiable warehouse receipt states that the goods received will be "delivered to the bearer."

Accepted Answer

A) True 
 B)False  True

Question 2

A common carrier is absolutely liable for loss or damage to goods in all of the following situations except:

Accepted Answer

A)  incidents arising from the inherent nature of the goods. 
B)  incidents involving a public enemy. 
C)  incidents involving acts of God 
D)  incidents involving mechanical breakdown of the vehicle. 
A)  incidents arising from the inherent nature of the goods. 
B)  incidents involving a public enemy. 
C)  incidents involving acts of God 
D)  incidents involving mechanical breakdown of the vehicle. D

Question 3

The Willett Seed Company stored its goods with the Augusta Warehouse Company and received a negotiable warehouse receipt. The Willett Seed Company then borrowed money from the Georgia Railroad Bank and pledged the warehouse receipt as security. The seed company defaulted, and the bank demanded the goods from the warehouse. The warehouse stated that it already had delivered the goods to the seed company on the strength of that company's promise that it would surrender the receipt shortly thereafter. The bank sued the warehouse for the value of the goods. Will the bank win?

Accepted Answer

Yes, judgment will be for the bank. When a negotiable warehouse receipt is issued for goods, the warehouser is liable to the holder of the receipt if the warehouser delivers the goods to anyone else. The bank, as pledgee, was the holder of the receipt, and it could demand the goods and sue for failure to deliver them.

Question 4

Hal was a merchant who deposited 2,000 barrels of olive oil in a public warehouse operated by Welcome Warehouse. Hal was issued a warehouse receipt for the 2,000 barrels that by its terms was deliverable "to bearer." Hal had engaged in many other transactions with Welcome and was in arrears for quite a bit of money to Welcome. Hal duly negotiated the warehouse receipt to Esmeralda Enterprises in payment of cash. Hal's financial affairs continued to deteriorate and Welcome never was paid the debt. When Esmeralda's agent requested the oil and offered to remit the warehouse receipt, Welcome refused to release the oil, claiming a lien on the oil for Hal's debt. Esmeralda sued. Decide the case.

Accepted Answer

The holder of a negotiable warehouse rec

Question 5

The major purpose of field warehousing is to:

Accepted Answer

A)  create warehouse receipts that the owner can pledge as security for loans. 
B)  create additional space in the firm's own warehouse. 
C)  allow warehousers an opportunity to service common carriers. 
D)  transfer title to buyers without requiring them to pick up merchandise at the plant's location. 
A)  create warehouse receipts that the owner can pledge as security for loans. 
B)  create additional space in the firm's own warehouse. 
C)  allow warehousers an opportunity to service common carriers. 
D)  transfer title to buyers without requiring them to pick up merchandise at the plant's location.

Question 6

The rights and duties of a warehouse are for the most part the same as those of a(n):

Accepted Answer

A)  bailee under a bailment for the sole benefit of the bailee. 
B)  bailee under an ordinary mutual-benefit bailment. 
C)  bailor under a bailment for the sole benefit of the bailor. 
D)  bailee under a bailment for the sole benefit of the bailor. 
A)  bailee under a bailment for the sole benefit of the bailee. 
B)  bailee under an ordinary mutual-benefit bailment. 
C)  bailor under a bailment for the sole benefit of the bailor. 
D)  bailee under a bailment for the sole benefit of the bailor.

Question 7

A transferor of a bill of lading makes all of the following implied warranties to the transferee, except:

Accepted Answer

A)  the transferor has no knowledge of defects. 
B)  the transfer is rightful. 
C)  the bill of lading is genuine 
D)  the goods are market value. 
A)  the transferor has no knowledge of defects. 
B)  the transfer is rightful. 
C)  the bill of lading is genuine 
D)  the goods are market value.

Question 8

When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a(n):

Accepted Answer

A)  bill of lading. 
B)  intent to transport memorandum. 
C)  warehouse receipt. 
D)  trust receipt. 
A)  bill of lading. 
B)  intent to transport memorandum. 
C)  warehouse receipt. 
D)  trust receipt.

Question 9

Bob Brown entered the Hotel Lux to attend a conference being held within the hotel. Sam Smith arrived to attend the same conference, registered at the front desk, and obtained a room. Sally Jones also intended to participate in the conference and was in essence living at the hotel at the time. What relationship exists between the hotel and each of these individuals? What can be said of the hotel's obligations to each individual under these circumstances?

Accepted Answer

a hotelkeeper is in the business of prov

Question 10

The legal definition of a guest of a hotel requires that the person:

Accepted Answer

A)  live at least five miles from the hotel. 
B)  is a guest of a registered occupant of the hotel. 
C)  is a transient. 
D)  stay at the hotel for at least 24 hours. 
A)  live at least five miles from the hotel. 
B)  is a guest of a registered occupant of the hotel. 
C)  is a transient. 
D)  stay at the hotel for at least 24 hours.

Question 11

Jeff purchased in good faith a warehouse receipt for 1,000 pairs of running shoes without notice of any defense to it, for value, and in the regular course of his business. Unknown to Jeff, the goods had been stolen from Jane and delivered to the warehouse that issued the receipt purchased by Jeff. Which of the following statements is true?

Accepted Answer

A)  Jeff holds a duly negotiated document of title and is not subject to Jane's title. 
B)  Jane is entitled to the goods and will prevail over Jeff. 
C)  Jeff is not a holder of a duly negotiated document. 
D)  Jane cannot recover the goods but can sue the warehouse for conversion. 
A)  Jeff holds a duly negotiated document of title and is not subject to Jane's title. 
B)  Jane is entitled to the goods and will prevail over Jeff. 
C)  Jeff is not a holder of a duly negotiated document. 
D)  Jane cannot recover the goods but can sue the warehouse for conversion.

Question 12

The rights of a transferee of a negotiable bill of lading are defeated if the goods have been stopped in transit.

Accepted Answer

A) True 
 B)False

Question 13

The purchase of a warehouse receipt by due negotiation eliminates all prior claims.

Accepted Answer

A) True 
 B)False

Question 14

When consigned goods are sold by a factor:

Accepted Answer

A)  When consigned goods are sold by a factor: 
B)  title passes even if the goods have been stolen, provided the factor is ignorant of this fact. 
C)  the sale passes the title of the owner to the buyer. 
D)  strict compliance with the Federal Factors Act is required to pass title. 
A)  When consigned goods are sold by a factor: 
B)  title passes even if the goods have been stolen, provided the factor is ignorant of this fact. 
C)  the sale passes the title of the owner to the buyer. 
D)  strict compliance with the Federal Factors Act is required to pass title.

Question 15

A building is essential to warehousing.

Accepted Answer

A) True 
 B)False

Question 16

A contract carrier holds itself out as willing to furnish transportation for compensation without discrimination to all members of the public who apply.

Accepted Answer

A) True 
 B)False

Question 17

The relationship of guest and hotelkeeper ends when the guest:

Accepted Answer

A)  pays his or her bill. 
B)  advises the hotelkeeper of his or her departure. 
C)  leaves or ceases to be a transient. 
D)  has stayed for 30 days and becomes a boarder. 
A)  pays his or her bill. 
B)  advises the hotelkeeper of his or her departure. 
C)  leaves or ceases to be a transient. 
D)  has stayed for 30 days and becomes a boarder.

Question 18

Warehouse receipts and bills of lading are both considered documents of title.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are true statements about warehousers except:

Accepted Answer

A)  A warehouser is a bailee. 
B)  A warehouser may issue a negotiable or nonnegotiable receipt. 
C)  A warehouser is an insurer of the goods. 
D)  A warehouser is liable for damaged goods if damage is caused by the warehouser's negligence. 
A)  A warehouser is a bailee. 
B)  A warehouser may issue a negotiable or nonnegotiable receipt. 
C)  A warehouser is an insurer of the goods. 
D)  A warehouser is liable for damaged goods if damage is caused by the warehouser's negligence.

Question 20

A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.

Accepted Answer

A) True 
 B)False

Exam 21: Legal Aspects of Supply Chain Management

A negotiable warehouse receipt states that the goods received will be "delivered to the bearer."

A common carrier is absolutely liable for loss or damage to goods in all of the following situations except:

The major purpose of field warehousing is to:

The rights and duties of a warehouse are for the most part the same as those of a(n):

A transferor of a bill of lading makes all of the following implied warranties to the transferee, except:

When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a(n):

The legal definition of a guest of a hotel requires that the person:

The rights of a transferee of a negotiable bill of lading are defeated if the goods have been stopped in transit.

The purchase of a warehouse receipt by due negotiation eliminates all prior claims.

When consigned goods are sold by a factor:

A building is essential to warehousing.

A contract carrier holds itself out as willing to furnish transportation for compensation without discrimination to all members of the public who apply.

The relationship of guest and hotelkeeper ends when the guest:

Warehouse receipts and bills of lading are both considered documents of title.

All of the following are true statements about warehousers except:

A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters