Question 1

Article 2 of the Uniform Commercial Code covers contracts to provide services or to sell real property.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following statements is true of an insurable interest in goods?

Accepted Answer

A)  Buyers have an insurable interest in goods at the moment they pay for the goods. 
B)  Buyers have an insurable interest in goods at the moment they get the title to the goods. 
C)  Sellers have an insurable interest in goods at the moment the goods are identified to the contract. 
D)  Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them. 
A)  Buyers have an insurable interest in goods at the moment they pay for the goods. 
B)  Buyers have an insurable interest in goods at the moment they get the title to the goods. 
C)  Sellers have an insurable interest in goods at the moment the goods are identified to the contract. 
D)  Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them. D

Question 3

Under the Uniform Commercial Code,if a contract is silent about the place of delivery,the goods are to be delivered:

Accepted Answer

A)  at the production site of the goods. 
B)  at the seller's place of business. 
C)  at the buyer's residence. 
D)  at any place the seller deems convenient. 
A)  at the production site of the goods. 
B)  at the seller's place of business. 
C)  at the buyer's residence. 
D)  at any place the seller deems convenient. B

Question 4

Under Article 2 of the Uniform Commercial Code,which of the following statements illustrates a merchant?

Accepted Answer

A)  Theodora, a doctor, sells her phone to her friend. 
B)  Charles, a chef, sells his car to his neighbor. 
C)  Nick, an electronic goods dealer, contracts to sell laptops to another firm. 
D)  Annie, a teacher, contracts to sell her microwave and television to her friend, Iris. 
A)  Theodora, a doctor, sells her phone to her friend. 
B)  Charles, a chef, sells his car to his neighbor. 
C)  Nick, an electronic goods dealer, contracts to sell laptops to another firm. 
D)  Annie, a teacher, contracts to sell her microwave and television to her friend, Iris.

Question 5

In the context of destination contracts,ex-ship specifies a particular ship on which the goods are to be placed but does not place the expense and risk on the seller.

Accepted Answer

A) True 
 B)False

Question 6

_____ means "honesty in fact in the transaction concerned."

Accepted Answer

A)  Good value 
B)  Good faith 
C)  Good risk 
D)  Good title 
A)  Good value 
B)  Good faith 
C)  Good risk 
D)  Good title

Question 7

Ellie took her diamond ring to Portman Jewelers Corp.for routine cleaning.An employee at the store sold the ring to Daniel who was unaware that the ring belonged to Ellie.Which of the following statements is true in this case?

Accepted Answer

A)  Ellie can recover the ring from Daniel. 
B)  Ellie can sue the store for conversion, but cannot recover the ring from Daniel because he was a buyer in the ordinary course of business. 
C)  Ellie can recover the ring from the store under the Uniform Commercial Code's ownership principles because the service element is predominant in this case. 
D)  Ellie cannot sue the store because the store employee acted in good faith. 
A)  Ellie can recover the ring from Daniel. 
B)  Ellie can sue the store for conversion, but cannot recover the ring from Daniel because he was a buyer in the ordinary course of business. 
C)  Ellie can recover the ring from the store under the Uniform Commercial Code's ownership principles because the service element is predominant in this case. 
D)  Ellie cannot sue the store because the store employee acted in good faith.

Question 8

The Uniform Commercial Code requires the original owners of the goods to bear the burden of collecting from their fraudulent buyers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of an FAS (free alongside)contract?

Accepted Answer

A)  The seller must deliver the goods alongside the vessel at his or her own risk and expense. 
B)  The seller must deliver the goods alongside the vessel at the buyer's risk and expense. 
C)  It does not include maritime contracts. 
D)  It is not accompanied by the name of a specific vessel or port. 
A)  The seller must deliver the goods alongside the vessel at his or her own risk and expense. 
B)  The seller must deliver the goods alongside the vessel at the buyer's risk and expense. 
C)  It does not include maritime contracts. 
D)  It is not accompanied by the name of a specific vessel or port.

Question 10

Marking of goods by the seller is a method of identification of goods.

Accepted Answer

A) True 
 B)False

Question 11

According to the Uniform Commercial Code,title to goods passes to the buyer:

Accepted Answer

A)  before the buyer pays for the goods. 
B)  upon selection of the goods by the buyer. 
C)  when the document of title is delivered by the seller. 
D)  only if the seller delivers the goods to the buyer's residence. 
A)  before the buyer pays for the goods. 
B)  upon selection of the goods by the buyer. 
C)  when the document of title is delivered by the seller. 
D)  only if the seller delivers the goods to the buyer's residence.

Question 12

In a shipment contract,"FOB" stands for _____.

Accepted Answer

A)  free on board 
B)  fee on board 
C)  freight on board 
D)  forbidden on board 
A)  free on board 
B)  fee on board 
C)  freight on board 
D)  forbidden on board

Question 13

If a contract is silent about the place for delivery,the goods are to be delivered at the seller's place of business.

Accepted Answer

A) True 
 B)False

Question 14

Under the Uniform Commercial Code,which of the following statements is true for the identification of goods to the contract?

Accepted Answer

A)  It is applicable if delivery is to be made without moving the goods. 
B)  It occurs when the parties use a negotiable document of title when the goods are being shipped. 
C)  It does not result from the actions of the seller, such as setting aside or marking the goods. 
D)  It does not result from the contract description of the goods. 
A)  It is applicable if delivery is to be made without moving the goods. 
B)  It occurs when the parties use a negotiable document of title when the goods are being shipped. 
C)  It does not result from the actions of the seller, such as setting aside or marking the goods. 
D)  It does not result from the contract description of the goods.

Question 15

If a buyer rejects tender of the goods:

Accepted Answer

A)  title will be retained with the buyer. 
B)  title can be retained if the contract does not describe the goods. 
C)  title will automatically be revested in the seller. 
D)  title can be retained only for a limited period of time. 
A)  title will be retained with the buyer. 
B)  title can be retained if the contract does not describe the goods. 
C)  title will automatically be revested in the seller. 
D)  title can be retained only for a limited period of time.

Question 16

If a contract is for the sale of goods,the principles of common law are applicable.

Accepted Answer

A) True 
 B)False

Question 17

Ed entered into a contract to buy a motorcycle from Hot Rod Motorcycles Inc.He paid the purchase price of $1,200 and was given the papers necessary to register the motorcycle and get insurance on it.Ed registered the motorcycle but had not attached the license plates to it.He left on vacation and told the Hot Rod salesperson that he would pick up the motorcycle on his return.While Ed was on vacation,there was an electric power blackout in New York City and the motorcycle was stolen.Ed sued Hot Rod to get back his money.Will Hot Rod have to bear the risk of loss of the motorcycle?

Accepted Answer

Yes,Hot Rod Motorcycles Inc.will have to

Question 18

In exclusive dealing contracts,the Uniform Commercial Code says that sellers have a duty to use their best efforts to supply their buyers,who in turn have a duty to use their best efforts to sell the goods.

Accepted Answer

A) True 
 B)False

Question 19

The rights of one who leases goods (a lessee)constitute ownership of the goods.

Accepted Answer

A) True 
 B)False

Question 20

If a buyer repudiates a contract for identified,conforming goods before risk of loss has passed to him/her,_____.

Accepted Answer

A)  the buyer is liable for a commercially reasonable time for any loss or damage to the goods that is not covered by the seller's insurance 
B)  the seller is liable for a commercially reasonable time for any loss or damage to the goods 
C)  the buyer and the seller must share the loss equally 
D)  the buyer is not liable for any loss or damage to the goods 
A)  the buyer is liable for a commercially reasonable time for any loss or damage to the goods that is not covered by the seller's insurance 
B)  the seller is liable for a commercially reasonable time for any loss or damage to the goods 
C)  the buyer and the seller must share the loss equally 
D)  the buyer is not liable for any loss or damage to the goods

Exam 19: Formation and Terms of Sales Contracts

Article 2 of the Uniform Commercial Code covers contracts to provide services or to sell real property.

Which of the following statements is true of an insurable interest in goods?

Under the Uniform Commercial Code,if a contract is silent about the place of delivery,the goods are to be delivered:

Under Article 2 of the Uniform Commercial Code,which of the following statements illustrates a merchant?

In the context of destination contracts,ex-ship specifies a particular ship on which the goods are to be placed but does not place the expense and risk on the seller.

_____ means "honesty in fact in the transaction concerned."

Ellie took her diamond ring to Portman Jewelers Corp.for routine cleaning.An employee at the store sold the ring to Daniel who was unaware that the ring belonged to Ellie.Which of the following statements is true in this case?

The Uniform Commercial Code requires the original owners of the goods to bear the burden of collecting from their fraudulent buyers.

Which of the following is true of an FAS (free alongside)contract?

Marking of goods by the seller is a method of identification of goods.

According to the Uniform Commercial Code,title to goods passes to the buyer:

In a shipment contract,"FOB" stands for _____.

If a contract is silent about the place for delivery,the goods are to be delivered at the seller's place of business.

Under the Uniform Commercial Code,which of the following statements is true for the identification of goods to the contract?

If a buyer rejects tender of the goods:

If a contract is for the sale of goods,the principles of common law are applicable.

In exclusive dealing contracts,the Uniform Commercial Code says that sellers have a duty to use their best efforts to supply their buyers,who in turn have a duty to use their best efforts to sell the goods.

The rights of one who leases goods (a lessee)constitute ownership of the goods.

If a buyer repudiates a contract for identified,conforming goods before risk of loss has passed to him/her,_____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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