Question 1

​Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable interest in the players as long as

Accepted Answer

A)  ​Household Appliance remains in business. 
B)  ​Household Appliance retains title to the goods. 
C)  ​the goods are in existence. 
D)  ​there is no risk of loss.

Question 2

Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora Company. Hybrid mistakenly ships a selection of annuals, which Garden & Field rejects and returns via Intra-state Transport, Inc. During the return, the annuals are lost. The loss is suffered by

Accepted Answer

A)  ​Garden & Field. 
B)  ​Hybrid Flora. 
C)  ​Intra-state Transport. 
D)  ​Garden & Field's customers by an increase in the prices of other goods.

Question 3

A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Accepted Answer

A)  ​a bill of lading. 
B)  ​a destination contract. 
C)  ​a shipment contract. 
D)  ​a warehouse receipt.

Question 4

Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

Accepted Answer

A) True 
 B)False

Question 5

In a destination contract, the seller is required or authorized to ship goods by carrier.

Accepted Answer

A) True 
 B)False

Question 6

​Pam buys from Midtown Motors a used sport utility vehicle (SUV). The SUV was manufactured by GEM Vehicles, Inc., and previously owned by Ron. Regarding title to the SUV, Pam acquires

Accepted Answer

A)  ​whatever title Midtown had. 
B)  ​whatever title Gem had. 
C)  ​whatever title Ron had. 
D)  ​no title.

Question 7

Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists the five carts as GC001, GC002, GC003, GC004, GC005. Identification

Accepted Answer

A)  ​will take place only when Jason pays for the golf carts. 
B)  ​requires that Jason verify his identity to take possession of the carts. 
C)  ​cannot take place until the contract is reviewed by a court. 
D)  ​has taken place.

Question 8

​Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from

Accepted Answer

A)  ​no one. 
B)  ​CSR. 
C)  ​Doris. 
D)  ​Apple, Inc., the maker of the iPod.

Question 9

Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is

Accepted Answer

A)  ​a bill of lading. 
B)  ​a destination contract. 
C)  ​a shipment contract. 
D)  ​a warehouse receipt.

Question 10

A seller has an insurable interest in goods as long as the goods are in existence.

Accepted Answer

A) True 
 B)False

Question 11

Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

Accepted Answer

A)  ​Spuds and Tater, but not Tasty Foods. 
B)  ​Spuds, Tater, and Tasty Foods. 
C)  ​Tater only. 
D)  ​none of the choices.

Question 12

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when

Accepted Answer

A)  ​Quality stores the drives. 
B)  ​Pipes & Culverts orders the drives. 
C)  ​Pipes & Culverts picks up the drives. 
D)  ​Quality gives Pipes & Culverts a warehouse receipt for the drives.

Question 13

Equipment Rentals Corporation (ERC) agrees to lease two backhoes to Dig & Fill Construction, Inc. Before any interest in the backhoes can pass from ERC to Dig & Fill, they must be

Accepted Answer

A)  ​in ERC's physical possession. 
B)  ​in Dig & Fill's physical possession. 
C)  ​listed in a document of title and filed in the appropriate state office. 
D)  ​in existence and identified as the goods in the contract.

Question 14

The risk of loss in a shipment contract passes to the buyer when the goods are delivered to the buyer at the specified destination.

Accepted Answer

A) True 
 B)False

Question 15

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in

Accepted Answer

A)  ​January, when the contract is signed. 
B)  ​April, when the calves are conceived. 
C)  ​February, when the calves are born. 
D)  ​a reasonable period of time.

Question 16

In contracts involving a sale of unborn animals to be born within twelve months, identification takes place when the animals are born.

Accepted Answer

A) True 
 B)False

Question 17

Effortless Workouts, Inc., offers to sell a treadmill to Farouk and sends it to him on a trial basis. This is

Accepted Answer

A)  ​a bailment. 
B)  ​a delivery ex-ship. 
C)  ​a sale on approval. 
D)  ​a sale or return.

Question 18

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Accepted Answer

A) True 
 B)False

Question 19

Both the buyer and the seller can have an insurable interest in identical goods at the same time.

Accepted Answer

A) True 
 B)False

Question 20

NutriRich, Inc., sells fifty cases of Omega 3 capsules to Good Health stores, but before Good Health takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of

Accepted Answer

A)  ​identification. 
B)  ​insurable interest. 
C)  ​risk of loss. 
D)  ​title.

Exam 21: Title, Risk, and Insurable Interest

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable interest in the players as long as

Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora Company. Hybrid mistakenly ships a selection of annuals, which Garden & Field rejects and returns via Intra-state Transport, Inc. During the return, the annuals are lost. The loss is suffered by

A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

In a destination contract, the seller is required or authorized to ship goods by carrier.

Pam buys from Midtown Motors a used sport utility vehicle (SUV) . The SUV was manufactured by GEM Vehicles, Inc., and previously owned by Ron. Regarding title to the SUV, Pam acquires

Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists the five carts as GC001, GC002, GC003, GC004, GC005. Identification

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from

Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is

A seller has an insurable interest in goods as long as the goods are in existence.

Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

Equipment Rentals Corporation (ERC) agrees to lease two backhoes to Dig & Fill Construction, Inc. Before any interest in the backhoes can pass from ERC to Dig & Fill, they must be

The risk of loss in a shipment contract passes to the buyer when the goods are delivered to the buyer at the specified destination.

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in

In contracts involving a sale of unborn animals to be born within twelve months, identification takes place when the animals are born.

Effortless Workouts, Inc., offers to sell a treadmill to Farouk and sends it to him on a trial basis. This is

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Both the buyer and the seller can have an insurable interest in identical goods at the same time.

NutriRich, Inc., sells fifty cases of Omega 3 capsules to Good Health stores, but before Good Health takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of

Exam 21: Title, Risk, and Insurable Interest

​Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable interest in the players as long as

Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora Company. Hybrid mistakenly ships a selection of annuals, which Garden & Field rejects and returns via Intra-state Transport, Inc. During the return, the annuals are lost. The loss is suffered by

A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

In a destination contract, the seller is required or authorized to ship goods by carrier.

​Pam buys from Midtown Motors a used sport utility vehicle (SUV) . The SUV was manufactured by GEM Vehicles, Inc., and previously owned by Ron. Regarding title to the SUV, Pam acquires

Jason contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists the five carts as GC001, GC002, GC003, GC004, GC005. Identification

​Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from

Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is

A seller has an insurable interest in goods as long as the goods are in existence.

Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

Equipment Rentals Corporation (ERC) agrees to lease two backhoes to Dig & Fill Construction, Inc. Before any interest in the backhoes can pass from ERC to Dig & Fill, they must be

The risk of loss in a shipment contract passes to the buyer when the goods are delivered to the buyer at the specified destination.

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in

In contracts involving a sale of unborn animals to be born within twelve months, identification takes place when the animals are born.

Effortless Workouts, Inc., offers to sell a treadmill to Farouk and sends it to him on a trial basis. This is

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Both the buyer and the seller can have an insurable interest in identical goods at the same time.

NutriRich, Inc., sells fifty cases of Omega 3 capsules to Good Health stores, but before Good Health takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable interest in the players as long as

Pam buys from Midtown Motors a used sport utility vehicle (SUV) . The SUV was manufactured by GEM Vehicles, Inc., and previously owned by Ron. Regarding title to the SUV, Pam acquires

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from