Question 1

When consigned goods are sold by a factor:

Accepted Answer

A)  title passes when the consignor approves the sale. 
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)  title passes when the consignor approves the sale. 
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 2

If a warehouse receipt provides for the delivery of the goods "to the bearer," the receipt may be negotiated by transfer of the document.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The rights and duties of warehousers are regulated by the UCC.

Accepted Answer

A) True 
 B)False

Question 5

A factor is a consignee.

Accepted Answer

A) True 
 B)False

Question 6

A carrier owned and operated by the shipper is:

Accepted Answer

A)  a common carrier. 
B)  a contract carrier. 
C)  a private carrier. 
D)  a consignor. 
A)  a common carrier. 
B)  a contract carrier. 
C)  a private carrier. 
D)  a consignor.

Question 7

General contract law determines whether a limitation clause is a part of the contract between the warehouser and the customer.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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 11

A common carrier of goods has the right to:

Accepted Answer

A)  make reasonable and necessary rules for the conduct of its business. 
B)  charge a rate that enables a fair return. 
C)  charge demurrage. 
D)  all of the above. 
A)  make reasonable and necessary rules for the conduct of its business. 
B)  charge a rate that enables a fair return. 
C)  charge demurrage. 
D)  all of the above.

Question 12

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 13

The common law rights and duties of a warehouser,in the absence of modifying statutes,are for the most part those of a bailee in:

Accepted Answer

A)  a bailment for the sole benefit of the bailee. 
B)  an ordinary mutual-benefit bailment. 
C)  a bailment for the sole benefit of the bailor. 
D)  none of the above. 
A)  a bailment for the sole benefit of the bailee. 
B)  an ordinary mutual-benefit bailment. 
C)  a bailment for the sole benefit of the bailor. 
D)  none of the above.

Exam 22: Legal Aspects of Supply Chain Management

When consigned goods are sold by a factor:

If a warehouse receipt provides for the delivery of the goods "to the bearer," the receipt may be negotiated by transfer of the document.

The rights and duties of warehousers are regulated by the UCC.

A factor is a consignee.

A carrier owned and operated by the shipper is:

General contract law determines whether a limitation clause is a part of the contract between the warehouser and the customer.

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

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

A common carrier of goods has the right to:

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

The common law rights and duties of a warehouser,in the absence of modifying statutes,are for the most part those of a bailee in:

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

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

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 Instruments, parties, 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