Question 1

Brett contracts to purchase a particular Chevrolet from Johnson's car lot.Brett obtains a "special property interest" in the car when:

Accepted Answer

A) the contract is made. 
B) the car is tendered to Brett. 
C) Brett pays for the car. 
D) Brett accepts the car. 
A) the contract is made. 
B) the car is tendered to Brett. 
C) Brett pays for the car. 
D) Brett accepts the car.

Question 2

A sale exists after the buyer takes:

Accepted Answer

A) the title to the goods. 
B) the risk of loss on the goods. 
C) an insurable interest in the goods. 
D) a special property interest in the goods. 
A) the title to the goods. 
B) the risk of loss on the goods. 
C) an insurable interest in the goods. 
D) a special property interest in the goods.

Question 3

The Heinrich v.Titus-Will Sales,Inc.case stands for the principle that:

Accepted Answer

A) the UCC requires proper state licensing for a company claiming to be a merchant to actually have merchant status. 
B) a buyer in the ordinary course of business acquires good title when buying from a merchant seller who was entrusted with possession of the goods. 
C) risk of loss depends on who has title to the goods at the time the goods are damaged or destroyed. 
D) a void title is no title. 
A) the UCC requires proper state licensing for a company claiming to be a merchant to actually have merchant status. 
B) a buyer in the ordinary course of business acquires good title when buying from a merchant seller who was entrusted with possession of the goods. 
C) risk of loss depends on who has title to the goods at the time the goods are damaged or destroyed. 
D) a void title is no title.

Question 4

Kevin delivers to Zach nonconforming goods.Zach accepts,but later discovers the defect and rightfully revokes acceptance.If the goods are destroyed through no fault of Kevin or Zach:

Accepted Answer

A) if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss. 
B) Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance. 
C) Zach will bear the loss, whether he has insurance or not. 
D) Kevin and Zach will equally share the loss. 
A) if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss. 
B) Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance. 
C) Zach will bear the loss, whether he has insurance or not. 
D) Kevin and Zach will equally share the loss.

Question 5

When one party breaches the sales contract,the Code places the risk of loss on that party.

Accepted Answer

A) True 
 B)False

Question 6

A "buyer in the ordinary course of business" is necessarily a "good faith purchaser for value."

Accepted Answer

A) True 
 B)False

Question 7

Tom makes pottery in his spare time.Jackie asks if he'd sell her a covered bowl.Later that day,he telephones her and says she can have it for $50.She agrees,so he tells her he'll wrap it up for her and it will be ready in half an hour.Six days later,Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks the bowl.Who is liable?

Accepted Answer

A) Tom, because Jackie had not yet received the bowl. 
B) Tom, because the bowl was in his possession when the dog broke it. 
C) Jackie, because she had identified the bowl. 
D) Jackie, because Tom had tendered the bowl to her nearly a week earlier. 
A) Tom, because Jackie had not yet received the bowl. 
B) Tom, because the bowl was in his possession when the dog broke it. 
C) Jackie, because she had identified the bowl. 
D) Jackie, because Tom had tendered the bowl to her nearly a week earlier.

Question 8

In a sale on approval:

Accepted Answer

A) possession, but not title, is transferred to the buyer for a stated period of time. 
B) possession and title are transferred to the buyer for a stated period of time. 
C) title, but not possession, is transferred to the buyer for a stated period of time. 
D) neither title nor possession is transferred to the buyer for a stated period of time. 
A) possession, but not title, is transferred to the buyer for a stated period of time. 
B) possession and title are transferred to the buyer for a stated period of time. 
C) title, but not possession, is transferred to the buyer for a stated period of time. 
D) neither title nor possession is transferred to the buyer for a stated period of time.

Question 9

Morris ordered 1,000 sq.ft.of green carpet from RS Company.In error,RS Company shipped 1,000 sq.ft.of gold carpet.In this case,the risk of loss remains with the seller until the seller remedies the defect or until Morris accepts the gold carpet.

Accepted Answer

A) True 
 B)False

Question 10

When goods have been damaged without the fault of either the seller or buyer,if the risk of loss is placed on the seller,the seller has no right to recover the purchase price from the buyer and has no right to the return of the damaged goods.

Accepted Answer

A) True 
 B)False

Question 11

The bulk sales portion (Article 6)of the Code applies only to transfers in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 12

How has the Code affected the rights of good faith purchasers with respect to minors?

Accepted Answer

The Code has expanded the rights of good

Question 13

The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods.

Accepted Answer

A) True 
 B)False

Question 14

Identification may be made by either the seller or the buyer.

Accepted Answer

A) True 
 B)False

Question 15

Duncan Supply has consigned goods to Huffman Hardware.Huffman's creditors may not take possession of the consigned goods to satisfy their claims against Huffman.

Accepted Answer

A) True 
 B)False

Question 16

Growingreen,a gourmet fresh food store that sells only the highest quality fruits,orders 100 lbs.of peaches from Western Fruits "on approval." Growingreen has never dealt with Western before this transaction.The peaches arrived on Saturday,but the owners of Growingreen were too busy to open the crates.Sunday they are closed.Monday at 4 p.m.,they opened the boxes and inspected the peaches.They did not meet the high standards of Growingreen,so they nailed the crates shut and ordered a truck to return them the next day.They arrived at Western on Thursday,totally spoiled,a week after they were sent.This is the first time Western knew they were not being accepted.Who is responsible for the damages to the peaches?

Accepted Answer

A) Growingreen, since it did not inspect and notify Western within a reasonable time. 
B) Growingreen, the risk of loss was on them when the peaches arrived. 
C) Western, since they retained the risk of loss until approval. 
D) Western, because they agreed to take the goods back. 
A) Growingreen, since it did not inspect and notify Western within a reasonable time. 
B) Growingreen, the risk of loss was on them when the peaches arrived. 
C) Western, since they retained the risk of loss until approval. 
D) Western, because they agreed to take the goods back.

Question 17

Article 6 of the Code does not:

Accepted Answer

A) apply to sales of goods in the ordinary course of business. 
B) define "bulk transfer" as any transfer in bulk and not in the ordinary course of business. 
C) apply to merchants whose principal business is the sale of merchandise from stock. 
D) include the transfer of a substantial part of equipment as a bulk transfer under any circumstances. 
E) All of the above. 
A) apply to sales of goods in the ordinary course of business. 
B) define "bulk transfer" as any transfer in bulk and not in the ordinary course of business. 
C) apply to merchants whose principal business is the sale of merchandise from stock. 
D) include the transfer of a substantial part of equipment as a bulk transfer under any circumstances. 
E) All of the above.

Question 18

Alex sees Mona's ring,and he thinks it is very valuable.He uses physical duress to cause her to give him the ring,and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $5,000.A month later,Mona discovers her ring on sale at Hanna's.Can Mona get the ring back?

Accepted Answer

A) Yes, since a true owner can always recover her own property. 
B) Yes, since Alex had voidable title to the ring. 
C) Yes, since Alex had void title to the ring. 
D) No, since Hanna was a good faith purchaser for value. 
A) Yes, since a true owner can always recover her own property. 
B) Yes, since Alex had voidable title to the ring. 
C) Yes, since Alex had void title to the ring. 
D) No, since Hanna was a good faith purchaser for value.

Question 19

Title to goods passes according to rules under the Code if the parties have no explicit agreement as to transfer of title.

Accepted Answer

A) True 
 B)False

Question 20

Goods must be both existing and identified to the contract before any interest in them can pass.

Accepted Answer

A) True 
 B)False

Exam 21: Transfer of Title and Risk of Loss

Brett contracts to purchase a particular Chevrolet from Johnson's car lot.Brett obtains a "special property interest" in the car when:

A sale exists after the buyer takes:

The Heinrich v.Titus-Will Sales,Inc.case stands for the principle that:

Kevin delivers to Zach nonconforming goods.Zach accepts,but later discovers the defect and rightfully revokes acceptance.If the goods are destroyed through no fault of Kevin or Zach:

When one party breaches the sales contract,the Code places the risk of loss on that party.

A "buyer in the ordinary course of business" is necessarily a "good faith purchaser for value."

In a sale on approval:

Morris ordered 1,000 sq.ft.of green carpet from RS Company.In error,RS Company shipped 1,000 sq.ft.of gold carpet.In this case,the risk of loss remains with the seller until the seller remedies the defect or until Morris accepts the gold carpet.

When goods have been damaged without the fault of either the seller or buyer,if the risk of loss is placed on the seller,the seller has no right to recover the purchase price from the buyer and has no right to the return of the damaged goods.

The bulk sales portion (Article 6)of the Code applies only to transfers in the ordinary course of business.

How has the Code affected the rights of good faith purchasers with respect to minors?

The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods.

Identification may be made by either the seller or the buyer.

Duncan Supply has consigned goods to Huffman Hardware.Huffman's creditors may not take possession of the consigned goods to satisfy their claims against Huffman.

Article 6 of the Code does not:

Alex sees Mona's ring,and he thinks it is very valuable.He uses physical duress to cause her to give him the ring,and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $5,000.A month later,Mona discovers her ring on sale at Hanna's.Can Mona get the ring back?

Title to goods passes according to rules under the Code if the parties have no explicit agreement as to transfer of title.

Goods must be both existing and identified to the contract before any interest in them can pass.

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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