Question 1

In the case Valley Forge Insurance Co.v.Great American Insurance Co.,the court ruled that:

Accepted Answer

A) title had passed to Kennedy as the car had been delivered to him. 
B) both title and risk of loss had passed to Kennedy as the contract was a shipment contract. 
C) title had not passed to Kennedy as the full purchase price had not been paid. 
D) the risk of loss had been transferred to Kennedy. 
A) title had passed to Kennedy as the car had been delivered to him. 
B) both title and risk of loss had passed to Kennedy as the contract was a shipment contract. 
C) title had not passed to Kennedy as the full purchase price had not been paid. 
D) the risk of loss had been transferred to Kennedy. C

Question 2

Which of the following statements about sale on approval is correct? Marco sells goods to Byron for his personal use on the basis that the goods may be returned if Byron is not satisfied with them.

Accepted Answer

A) The buyer has the right to return the goods to the seller provided he intended to use them himself. 
B) The goods are not subject to the buyer's creditors until the buyer accepts them. 
C) There is no sale until the buyer accepts the goods. 
D) All of the above. 
A) The buyer has the right to return the goods to the seller provided he intended to use them himself. 
B) The goods are not subject to the buyer's creditors until the buyer accepts them. 
C) There is no sale until the buyer accepts the goods. 
D) All of the above. D

Question 3

In the case of Lindholm v.Brant,the court ruled:

Accepted Answer

A) Brant could not be a BIOC because he did not act in good faith. 
B) Brant could not be a BIOC since he knew the painting had been stolen. 
C) Brant was a BIOC, entitled to keep the painting in question. 
D) that whether Brant was a BIOC was irrelevant as the title to the painting was void. 
A) Brant could not be a BIOC because he did not act in good faith. 
B) Brant could not be a BIOC since he knew the painting had been stolen. 
C) Brant was a BIOC, entitled to keep the painting in question. 
D) that whether Brant was a BIOC was irrelevant as the title to the painting was void. C

Question 4

Microchip Computers is a retailer,which buys its inventory from Acme Co.on credit,giving Acme a security interest in the inventory.Hubert buys a computer from Microchip in the normal course of business.Hubert's title in the computer is:

Accepted Answer

A) a good title. 
B) a voidable title. 
C) Hubert has no title in the computer.Title does not pass to Microchip and therefore to Hubert until Microchip pays its debt in full to Acme. 
D) Hubert has good title that is subject to Acme's security interest. 
A) a good title. 
B) a voidable title. 
C) Hubert has no title in the computer.Title does not pass to Microchip and therefore to Hubert until Microchip pays its debt in full to Acme. 
D) Hubert has good title that is subject to Acme's security interest.

Question 5

What are the requirements for the doctrine of entrustment to apply?

Accepted Answer

A) The goods must be entrusted to a merchant who deals in goods of the kind. 
B) The entrustee may transfer the rights of the entruster only if the buyer is a purchaser in ordinary course. 
C) The owner must have delivered the goods to a merchant or permitted him to retain them. 
D) All of the above. 
A) The goods must be entrusted to a merchant who deals in goods of the kind. 
B) The entrustee may transfer the rights of the entruster only if the buyer is a purchaser in ordinary course. 
C) The owner must have delivered the goods to a merchant or permitted him to retain them. 
D) All of the above.

Question 6

Oceanside entered into a contract with the seller Old Tennessee,for the purchase of $6,431 worth of plants.The terms were sale and delivery C.O.D.with the express provision of "No Risk to Supplier," and a large logo at the top of papers stating:
"NOTICE: ALL SHIPMENTS TRAVEL AT RISK AND COST OF PURCHASER."
The plants were shipped by an experienced truck common carrier.Upon arrival in New York,it appeared as though some plants were in a poor state because of excessive heat.Although the carrier on its own marked the bill of lading to indicate that the temperature in the truck should be 50 degrees,this was not done for at least a portion of the journey.Oceanside rejected the shipment by writing "rejected" on the back of the trucker's bill of lading.However,the plants were retained "on consignment" at Oceanside's premises.There were no other formal written rejections or official notices of breach or defects given by the buyer to seller at any point prior to trial.Discuss who has the risk of loss.

Accepted Answer

Oceanside has the risk of loss in this c

Question 7

Regardless of the language of the contract,title to goods passes to the buyer at the time and place at which the seller physically delivers the goods.

Accepted Answer

A) True 
 B)False

Question 8

A contract that requires a seller to deliver goods to the carrier is:

Accepted Answer

A) a destination contract. 
B) a shipment contract. 
C) a C.I.F.contract. 
D) a C.O.D.contract. 
A) a destination contract. 
B) a shipment contract. 
C) a C.I.F.contract. 
D) a C.O.D.contract.

Question 9

On impulse,you purchase a travel trailer and ask your acquaintance,Max,if you can leave the trailer at the edge of his restaurant's parking lot until you can have a concrete pad built to store the trailer on your property.Max agrees.When you return for the trailer the next week,it is gone and you find out that Max sold it.You can:

Accepted Answer

A) recover the trailer because Max did not have any ownership interest to pass. 
B) recover, but only if Max bought insurance to cover the trailer while it was on his property. 
C) not recover because you "entrusted" the trailer to Max, who then had a right to sell it. 
D) not recover because Max had only a voidable title to transfer. 
A) recover the trailer because Max did not have any ownership interest to pass. 
B) recover, but only if Max bought insurance to cover the trailer while it was on his property. 
C) not recover because you "entrusted" the trailer to Max, who then had a right to sell it. 
D) not recover because Max had only a voidable title to transfer.

Question 10

Discuss the concept of entrustment.

Accepted Answer

According to UCC Section 2-403(2),any en

Question 11

A purchaser can acquire better title than the seller had.

Accepted Answer

A) True 
 B)False

Question 12

The buyer and seller may not have an insurable interest in the same goods at the same time.

Accepted Answer

A) True 
 B)False

Question 13

Buyer is located in Des Moines,Iowa and seller is located in Sacramento,California.The contract specifies F.O.B.Des Moines.This contract is a:

Accepted Answer

A) destination contract. 
B) sale or return. 
C) shipment contract. 
D) sale on approval. 
A) destination contract. 
B) sale or return. 
C) shipment contract. 
D) sale on approval.

Question 14

If Terrill steals a digital camera and sells it to Samuel,Samuel will get a valid title as long as he can prove he gave value for the camera and acted in good faith.

Accepted Answer

A) True 
 B)False

Question 15

In January,Eddie contracts to sell 100 bushels of soybeans that fall.This contract:

Accepted Answer

A) is void.He cannot contract to sell a crop before it is even planted; the goods must be in existence. 
B) is void.The soybeans must be identified to the contract at the time he contracts to sell them. 
C) can be valid; but title to the soybeans cannot pass until the soybeans exist. 
D) can be valid, and title to the soybeans passes when the contract is signed. 
A) is void.He cannot contract to sell a crop before it is even planted; the goods must be in existence. 
B) is void.The soybeans must be identified to the contract at the time he contracts to sell them. 
C) can be valid; but title to the soybeans cannot pass until the soybeans exist. 
D) can be valid, and title to the soybeans passes when the contract is signed.

Question 16

To determine ownership in goods,the UCC looks at title,insurable interest and identification.

Accepted Answer

A) True 
 B)False

Question 17

Under the UCC,the party who has title to the goods always has the risk of loss.

Accepted Answer

A) True 
 B)False

Question 18

Sanco contracted to sell 1,000 cases of oil to AMF.The oil is located in a public warehouse,which has issued a warehouse receipt for it.Which of the following is correct?

Accepted Answer

A) The risk of loss passes to the buyer when the contract is made. 
B) The risk of loss passes to the buyer when the goods are tendered to him. 
C) The risk of loss passes to the buyer when the warehouse receipt is delivered to the buyer. 
D) The risk of loss passes to the buyer when the buyer gets the oil to its final destination. 
A) The risk of loss passes to the buyer when the contract is made. 
B) The risk of loss passes to the buyer when the goods are tendered to him. 
C) The risk of loss passes to the buyer when the warehouse receipt is delivered to the buyer. 
D) The risk of loss passes to the buyer when the buyer gets the oil to its final destination.

Question 19

More than one party can have an interest in particular goods.

Accepted Answer

A) True 
 B)False

Question 20

The Grand Hotel of Jonesville,Kentucky,purchased 200 chairs from Holton Furniture,whose business is in Minnesota.The purchase order included the following term: "F.O.B.Minneapolis,MN." The contract makes no mention of risk of loss or title.The contract can be described as a:

Accepted Answer

A) shipment contract. 
B) destination contract. 
C) sale or return.. 
D) sale on approval. 
A) shipment contract. 
B) destination contract. 
C) sale or return.. 
D) sale on approval.

Exam 19: Ownership and Risk

In the case Valley Forge Insurance Co.v.Great American Insurance Co.,the court ruled that:

Which of the following statements about sale on approval is correct? Marco sells goods to Byron for his personal use on the basis that the goods may be returned if Byron is not satisfied with them.

In the case of Lindholm v.Brant,the court ruled:

Microchip Computers is a retailer,which buys its inventory from Acme Co.on credit,giving Acme a security interest in the inventory.Hubert buys a computer from Microchip in the normal course of business.Hubert's title in the computer is:

What are the requirements for the doctrine of entrustment to apply?

Regardless of the language of the contract,title to goods passes to the buyer at the time and place at which the seller physically delivers the goods.

A contract that requires a seller to deliver goods to the carrier is:

Discuss the concept of entrustment.

A purchaser can acquire better title than the seller had.

The buyer and seller may not have an insurable interest in the same goods at the same time.

Buyer is located in Des Moines,Iowa and seller is located in Sacramento,California.The contract specifies F.O.B.Des Moines.This contract is a:

If Terrill steals a digital camera and sells it to Samuel,Samuel will get a valid title as long as he can prove he gave value for the camera and acted in good faith.

In January,Eddie contracts to sell 100 bushels of soybeans that fall.This contract:

To determine ownership in goods,the UCC looks at title,insurable interest and identification.

Under the UCC,the party who has title to the goods always has the risk of loss.

Sanco contracted to sell 1,000 cases of oil to AMF.The oil is located in a public warehouse,which has issued a warehouse receipt for it.Which of the following is correct?

More than one party can have an interest in particular goods.

The Grand Hotel of Jonesville,Kentucky,purchased 200 chairs from Holton Furniture,whose business is in Minnesota.The purchase order included the following term: "F.O.B.Minneapolis,MN." The contract makes no mention of risk of loss or title.The contract can be described as a:

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, statutory Law, and Administrative Law

Constitutional Law

Torts

Crime

International Law

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance and Discharge

Remedies

Introduction to Sales

Warranties and Product Liability

Performance and Remedies

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Liability for Negotiable Instruments: Banks and Their Customers

Secured Transactions

Bankruptcy

Agency

Employment Law

Starting a Business: Llcs and Other Options

Corporations

Securities Regulation

Property

Cyberlaw

Intellectual Property

Filters