Question 1

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Accepted Answer

A)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, reject the goods subject to the seller's curing the deficiency in the goods, or reject the goods if no cure is possible. 
B)  If a seller does not provide goods as described in a contract, the buyer may reject the goods subject to the seller's curing the deficiency in the goods, but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible. 
C)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages, but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible. 
D)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods, but the buyer may not reject the goods subject to the seller's curing the deficiency. 
E)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, or the buyer may reject the goods subject to the seller's curing the deficiency in the goods; but the buyer may not simply reject the goods. 
A)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, reject the goods subject to the seller's curing the deficiency in the goods, or reject the goods if no cure is possible. 
B)  If a seller does not provide goods as described in a contract, the buyer may reject the goods subject to the seller's curing the deficiency in the goods, but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible. 
C)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages, but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible. 
D)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods, but the buyer may not reject the goods subject to the seller's curing the deficiency. 
E)  If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, or the buyer may reject the goods subject to the seller's curing the deficiency in the goods; but the buyer may not simply reject the goods.

Question 2

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Accepted Answer

A)  Void 
B)  Voidable 
C)  Good 
D)  Substantiated 
E)  Excised 
A)  Void 
B)  Voidable 
C)  Good 
D)  Substantiated 
E)  Excised

Question 3

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

Accepted Answer

A)  The purchaser gets good title. 
B)  The purchaser gets voidable title. 
C)  The purchaser gets void title. 
D)  The purchaser gets reclaimable title. 
E)  The purchaser gets good-faith title. 
A)  The purchaser gets good title. 
B)  The purchaser gets voidable title. 
C)  The purchaser gets void title. 
D)  The purchaser gets reclaimable title. 
E)  The purchaser gets good-faith title.

Question 4

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 5

In an origin contract, when does title pass to the buyer?

Accepted Answer

A)  When money is transferred to the seller 
B)  When the items are delivered to the buyer 
C)  At the time and place of shipment 
D)  One day after goods are identified to the contract 
E)  When goods are identified to the contract 
A)  When money is transferred to the seller 
B)  When the items are delivered to the buyer 
C)  At the time and place of shipment 
D)  One day after goods are identified to the contract 
E)  When goods are identified to the contract

Exam 22: Title, Risk of Loss, and Insurable Interest

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

In an origin contract, when does title pass to the buyer?

An Introduction to Dynamic Business Law

Business Ethics

The US Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters