Question 1

Title to existing,identified goods can pass whenever the parties agree it will pass.

Accepted Answer

A) True 
 B)False  True

Question 2

In a contract where the buyer is to pick up the goods at the seller's place of business and the seller is a merchant,the risk of loss passes to the buyer when the goods are tendered to the buyer.

Accepted Answer

A) True 
 B)False  False

Question 3

When delivery is to be made without moving the goods,unless otherwise agreed,title passes:

Accepted Answer

A) at the time and place of contracting under all circumstances. 
B) when a document of title is created if a negotiable document of title is involved. 
C) when the goods are identified if they were not identified at the time of contracting. 
D) at the time the seller completes performance. 
A) at the time and place of contracting under all circumstances. 
B) when a document of title is created if a negotiable document of title is involved. 
C) when the goods are identified if they were not identified at the time of contracting. 
D) at the time the seller completes performance. C

Question 4

In Robinson v.Durham,the court found:

Accepted Answer

A) the Robinsons were good faith purchasers for value when they bought the car for their business, and they had good title which they passed to Durham. 
B) the Robinsons had a voidable title, and they passed good title to Durham, who was a good faith purchaser for value. 
C) there was a breach of warranty of title between the Robinsons and Durham. 
D) the Robinsons obtained no title from the thief, but they passed good title to Durham since he was a good faith purchaser for value. 
A) the Robinsons were good faith purchasers for value when they bought the car for their business, and they had good title which they passed to Durham. 
B) the Robinsons had a voidable title, and they passed good title to Durham, who was a good faith purchaser for value. 
C) there was a breach of warranty of title between the Robinsons and Durham. 
D) the Robinsons obtained no title from the thief, but they passed good title to Durham since he was a good faith purchaser for value.

Question 5

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

Accepted Answer

A) True 
 B)False

Question 6

Jerry bought a stereo from SX Company "on approval." The risk of loss passed to Jerry when he took possession of the stereo.

Accepted Answer

A) True 
 B)False

Question 7

The Code has enlarged the common law voidable title doctrine by providing that a good faith purchaser for value obtains title from one possessing voidable title even if that person obtained voidable title by:
a.criminal fraud punishable as larceny.
b.fraud as to her identify.
c.exchange for a subsequently dishonored check.
d.an agreement that the transaction was to be a cash sale, and the sales price has not been paid.
e.All of the above.

Accepted Answer

a.Under the Code,Arthur has "entrusted"

Question 8

Goods that have been entrusted to a merchant may be sold by that merchant even when the merchant has been told not to sell the goods,and when a merchant sells such goods to a buyer in the ordinary course of business,that buyer has title that is superior to the title of the original owner who entrusted them to the merchant.

Accepted Answer

A) True 
 B)False

Question 9

Security interests,defined by the Code as interests in personal property or fixtures that ensure payment or performance of obligations,are governed by Article 6 of the UCC.

Accepted Answer

A) True 
 B)False

Question 10

The risk of loss for "sale or return" is the same as for a sale "on approval."

Accepted Answer

A) True 
 B)False

Question 11

Mary orders a dress for $1,000.The designer sends the wrong size.Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State Engineering.She calls the designer and sends the dress back,but it is lost in the mail.Mary's insurance would cover $400 of the loss.The designer's insurance would cover $900.Who is liable?

Accepted Answer

A) Mary will bear the whole loss because she accepted the goods. 
B) The designer will bear the whole loss because Mary returned the nonconforming goods. 
C) Mary will owe $100, the designer $900. 
D) The risk is Mary's to the extent of $400. 
A) Mary will bear the whole loss because she accepted the goods. 
B) The designer will bear the whole loss because Mary returned the nonconforming goods. 
C) Mary will owe $100, the designer $900. 
D) The risk is Mary's to the extent of $400.

Question 12

A void title may allow good title to pass in special circumstances.

Accepted Answer

A) True 
 B)False

Question 13

Future goods can be the subject of a present sale.

Accepted Answer

A) True 
 B)False

Question 14

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

Accepted Answer

A) True 
 B)False

Question 15

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved,when does the risk of loss pass to the buyer?

Accepted Answer

A) At such time as the contract of sale was entered. 
B) At such time as the buyer receives the negotiable document of title. 
C) When the seller tenders a nonnegotiable document of title to the bailee. 
D) When the bailee is orally notified of the sale. 
A) At such time as the contract of sale was entered. 
B) At such time as the buyer receives the negotiable document of title. 
C) When the seller tenders a nonnegotiable document of title to the bailee. 
D) When the bailee is orally notified of the sale.

Question 16

Z,a seller in Miami,enters into a contract which states that goods are to be delivered to X,a buyer in New York.Title is to remain with Z until delivery.This is:

Accepted Answer

A) a shipment contract. 
B) an FOB Miami contract. 
C) a destination contract. 
D) a consignment. 
A) a shipment contract. 
B) an FOB Miami contract. 
C) a destination contract. 
D) a consignment.

Question 17

If goods are sold and delivered to buyer with an option to return them,the risk is on the buyer until they are returned.

Accepted Answer

A) True 
 B)False

Question 18

Under a shipment contract,the seller passes title to the buyer when the goods arrive.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding identification of the goods under Article 2?

Accepted Answer

A) Only the buyer can identify the goods. 
B) Identification of existing goods gives the buyer a special property right. 
C) Identification of fungible goods occurs when the seller separates the contracted units from the whole. 
D) All of the above are correct. 
A) Only the buyer can identify the goods. 
B) Identification of existing goods gives the buyer a special property right. 
C) Identification of fungible goods occurs when the seller separates the contracted units from the whole. 
D) All of the above are correct.

Question 20

Explain what a trial sale is.Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types.Discuss transfer of title and risk or loss with each type of trial sale.

Accepted Answer

Some sales are made with the understandi

Exam 21: Transfer of Title and Risk of Loss

Title to existing,identified goods can pass whenever the parties agree it will pass.

In a contract where the buyer is to pick up the goods at the seller's place of business and the seller is a merchant,the risk of loss passes to the buyer when the goods are tendered to the buyer.

When delivery is to be made without moving the goods,unless otherwise agreed,title passes:

In Robinson v.Durham,the court found:

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

Jerry bought a stereo from SX Company "on approval." The risk of loss passed to Jerry when he took possession of the stereo.

Security interests,defined by the Code as interests in personal property or fixtures that ensure payment or performance of obligations,are governed by Article 6 of the UCC.

The risk of loss for "sale or return" is the same as for a sale "on approval."

A void title may allow good title to pass in special circumstances.

Future goods can be the subject of a present sale.

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved,when does the risk of loss pass to the buyer?

Z,a seller in Miami,enters into a contract which states that goods are to be delivered to X,a buyer in New York.Title is to remain with Z until delivery.This is:

If goods are sold and delivered to buyer with an option to return them,the risk is on the buyer until they are returned.

Under a shipment contract,the seller passes title to the buyer when the goods arrive.

Which of the following is true regarding identification of the goods under Article 2?

Explain what a trial sale is.Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types.Discuss transfer of title and risk or loss with each type of trial sale.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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