Exam 19: Formation and Terms of Sales Contracts

A department store sells a TV set to Wilson,who pays with a bad check.Wilson immediately sells the TV to Davis for $500.Davis knew nothing about how Wilson acquired the TV from the store.Davis has good title to the TV and will prevail against the store if it sues Davis for the TV or its value.

Auto Mart sells new and used vehicles and finances its inventory through ABC Bank.Finn purchases a new car from Auto Mart and receives good title free and clear of ABC's security interest.Which of the following is false?

Which of the following is the reason why the UCC distinguishes between merchants and nonmerchants?

Which of the following is a transfer of the right to possess and use goods belonging to another?

Which of the following statements about sale on approval is false?

A ________ takes goods free of any security interest in the goods that their seller may have given to a third party.

Which section of the UCC addresses sale or return contracts and sale on approval contracts?

Joe went to a music store and misrepresented himself as James to the store attendant.He buys a plasma television set on credit,charging it to James's account.He then sells that set to Mike.Mike buys the set in good faith.Which of the following is true?

Megan has purchased two tickets for a lucky draw at the local supermarket,which are with the store's cashier.Tracy,her friend,who knows about this,convinces the cashier that she is Megan and takes the tickets.She then goes and sells the tickets to Anya,who has no knowledge of the case.Which of the following statements is true?

In determining the quantity of goods to be produced or taken pursuant to an output or needs contract,the rule of ________ applies.

Which of the following is most important in determining who bears the risk of loss in a sale of goods contract?

Which of the following is true of price terms in a contract?

The Code requires that parties to sales contracts act in good faith and:

For which of the following sale contracts does title and risk of loss remain with the seller until the buyer accepts the goods?

Which of the following statements regarding when a person with voidable title sells a good to a good-faith purchase is false?

A seller who has a ________ has the power to pass good title to a good faith purchaser for value.

The Benson Bearing Company sells Textron,Inc.a quantity of baseball bats that were stored in an independent warehouse at the time of the sale.The contract says that Textron is to pick up the bats at the warehouse.The risk of loss passes to Textron:

In a "mixed" contract for the sale of both goods and services,the court will apply the contract rules of the UCC or of the common law,depending on whether:

Press Publishers sold 100 copies of a new hardback book entitled "Business Law to Boardwalk Books." The contract between Press and Boardwalk Books provides,in relevant part,that Boardwalk may return to Press any unused copies of the book within six months.During the six-month period,Boardwalk sold only five copies of these books.However,twenty copies were damaged from sitting on the bookshelf for six months and having customers rip pages and spill coffee on them.Boardwalk wants to return all ninety-five copies to Press.Does Boardwalk have the right to return the remaining copies?

If the delivery term of the contract is ________,the place at which the goods originate,the seller is obligated to deliver to the carrier goods that conform to the contract and are properly prepared for shipment to the buyer,and the seller must make a reasonable contract for transportation of the goods on behalf of the buyer.