Question 1

The Windows,Inc.v.Jordan Panel Systems Corp.case illustrated the concept that:

Accepted Answer

A) unless the parties expressly specify that the contract requires the seller to deliver to a particular destination, the contract is generally considered to be a shipment contract. 
B) unless the parties expressly designate the type of contract, it will be interpreted to be a destination contract. 
C) goods in the possession of a bailee which are to be delivered without being moved will have the risk of loss pass to the buyer when the buyer receives a negotiable document of title. 
D) express, specific provisions in a contract control as long as they are not unconscionable or grossly unfair to one of the parties. 
A) unless the parties expressly specify that the contract requires the seller to deliver to a particular destination, the contract is generally considered to be a shipment contract. 
B) unless the parties expressly designate the type of contract, it will be interpreted to be a destination contract. 
C) goods in the possession of a bailee which are to be delivered without being moved will have the risk of loss pass to the buyer when the buyer receives a negotiable document of title. 
D) express, specific provisions in a contract control as long as they are not unconscionable or grossly unfair to one of the parties.

Question 2

Which of the following is correct with regard to risk of loss,where the goods are in the possession of a bailee and are covered by a negotiable document of title?

Accepted Answer

A) Risk of loss passes when the buyer receives the document. 
B) Risk of loss passes when the document is tendered to the buyer. 
C) Risk of loss passes when notification of the arrival of the goods is given to the buyer. 
D) If the buyer is a merchant, risk of loss passes to the buyer when the goods are delivered. 
A) Risk of loss passes when the buyer receives the document. 
B) Risk of loss passes when the document is tendered to the buyer. 
C) Risk of loss passes when notification of the arrival of the goods is given to the buyer. 
D) If the buyer is a merchant, risk of loss passes to the buyer when the goods are delivered.

Question 3

Everett bought a washer and dryer for $1,200 from Neely Appliances,which was to deliver the set in two days,on its regular delivery date for Everett's area.However,on the night of the sale,Neely's suffered an accidental fire and the washer and dryer were destroyed.Who has the risk of loss? Who would have the risk of loss if Everett had instead bought a used washer and dryer from his neighbor who was having a moving sale,and the washer and dryer were destroyed after Everett had paid for them and after the neighbor made them available to Everett but before he picked them up?

Accepted Answer

a.A bulk transfer is a merchant's transf

Question 4

Mark,a college student,agreed to sell his horse to Henry for $1,000.The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse.Henry paid Mark the money,patted the horse and said,"I'm glad you're mine,you beauty," and drove off.Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild.Has there been a sale?

Accepted Answer

A) No, not until delivery to Idlewild. 
B) No, not until Henry sees the horse again. 
C) Yes, since Henry already paid for it. 
D) Yes, since the contract was made earlier in the day. 
A) No, not until delivery to Idlewild. 
B) No, not until Henry sees the horse again. 
C) Yes, since Henry already paid for it. 
D) Yes, since the contract was made earlier in the day.

Question 5

Wayne sells James a forklift,but retains a security interest in the equipment.Wayne no longer has an insurable interest in the forklift since title has passed to James.

Accepted Answer

A) True 
 B)False

Question 6

A(n)__________ is a delivery of possession of personal property to an agent for sale by the agent.

Accepted Answer

A) sale on approval 
B) consignment 
C) sale or return 
D) None of the above. 
A) sale on approval 
B) consignment 
C) sale or return 
D) None of the above.

Question 7

The buyer and seller of goods may not simultaneously hold insurable interests in the goods.

Accepted Answer

A) True 
 B)False

Question 8

Louella purchases a steam cleaner from Alden for $120.She must believe Alden is the owner of or has the authority to sell the cleaner in order to receive the protection of a good faith purchaser.

Accepted Answer

A) True 
 B)False

Question 9

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

Accepted Answer

A) True 
 B)False

Question 10

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods,title passes at the time and place at which the seller completes performance.

Accepted Answer

A) True 
 B)False

Question 11

The parties,by agreement,may divide the risk and shift the allocation of risk.

Accepted Answer

A) True 
 B)False

Question 12

Fungible goods are goods for which one unit is the equivalent of any other unit.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is necessary to be considered a good faith purchaser?

Accepted Answer

A) The purchaser must act honestly. 
B) The purchaser must give value for the item. 
C) The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor. 
D) All of the above are necessary. 
A) The purchaser must act honestly. 
B) The purchaser must give value for the item. 
C) The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor. 
D) All of the above are necessary.

Question 14

If the owner of goods entrusts them to a merchant,the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

Accepted Answer

A) True 
 B)False

Question 15

Jack is a guest at Harry's home.While there,he goes into the library and picks up a music box that is part of Harry's collection.Jack overwinds the stem and it breaks.Hoping Harry won't notice,Jack takes the music box for repair to a jeweler who sells similar ones.The jeweler fixes it,but forgets to tag it and an unsuspecting clerk sells it to Robert.Jack is frantic.Can Harry get the music box from Robert?

Accepted Answer

A) No, the jeweler gives good title to a bona fide purchaser for value. 
B) No, the jeweler was not a merchant with regard to music boxes. 
C) Yes, Robert was not a buyer in the ordinary course of business. 
D) Yes, Robert has assumed only Jack's title, which is no title at all. 
A) No, the jeweler gives good title to a bona fide purchaser for value. 
B) No, the jeweler was not a merchant with regard to music boxes. 
C) Yes, Robert was not a buyer in the ordinary course of business. 
D) Yes, Robert has assumed only Jack's title, which is no title at all.

Question 16

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.After the shirts were specially imprinted,but before they were mailed,Amanda called King Manufacturing to disavow the contract.The next day the sweatshirts were stolen.In this case:

Accepted Answer

A) Amanda must pay the entire purchase price, because she breached the contract. 
B) King Manufacturing will have to bear the entire loss, because it had not yet mailed the shirts. 
C) Amanda must bear the entire loss, because the shirts were identified to the contract. 
D) King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance. 
A) Amanda must pay the entire purchase price, because she breached the contract. 
B) King Manufacturing will have to bear the entire loss, because it had not yet mailed the shirts. 
C) Amanda must bear the entire loss, because the shirts were identified to the contract. 
D) King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance.

Question 17

A voidable title is no title.

Accepted Answer

A) True 
 B)False

Question 18

With regard to Article 6 of the Uniform Commercial Code,which of the following is accurate?

Accepted Answer

A) The National Conference of Commissioners on Uniform State Laws and the American Law Institute jointly issued a recommendation stating "that changes in the business and legal contexts in which sales are conducted have made regulation of bulk sales necessary." 
B) Nearly all of the states have repealed Article 6 of the UCC. 
C) Article 60 is a revision of Article 6. 
D) All of the above. 
E) None of the above. 
A) The National Conference of Commissioners on Uniform State Laws and the American Law Institute jointly issued a recommendation stating "that changes in the business and legal contexts in which sales are conducted have made regulation of bulk sales necessary." 
B) Nearly all of the states have repealed Article 6 of the UCC. 
C) Article 60 is a revision of Article 6. 
D) All of the above. 
E) None of the above.

Question 19

Howard stole a computer and then sold it to his friend Ivan for $100.Ivan has:

Accepted Answer

A) good title to the computer, because he paid for it. 
B) a voidable title to the computer. 
C) a void title to the computer. 
D) good title to the computer, because he is a good faith purchaser for value. 
A) good title to the computer, because he paid for it. 
B) a voidable title to the computer. 
C) a void title to the computer. 
D) good title to the computer, because he is a good faith purchaser for value.

Question 20

Under a shipment contract,title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

Accepted Answer

A) True 
 B)False

Exam 21: Transfer of Title and Risk of Loss

The Windows,Inc.v.Jordan Panel Systems Corp.case illustrated the concept that:

Which of the following is correct with regard to risk of loss,where the goods are in the possession of a bailee and are covered by a negotiable document of title?

Wayne sells James a forklift,but retains a security interest in the equipment.Wayne no longer has an insurable interest in the forklift since title has passed to James.

A(n)__________ is a delivery of possession of personal property to an agent for sale by the agent.

The buyer and seller of goods may not simultaneously hold insurable interests in the goods.

Louella purchases a steam cleaner from Alden for $120.She must believe Alden is the owner of or has the authority to sell the cleaner in order to receive the protection of a good faith purchaser.

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods,title passes at the time and place at which the seller completes performance.

The parties,by agreement,may divide the risk and shift the allocation of risk.

Fungible goods are goods for which one unit is the equivalent of any other unit.

Which of the following is necessary to be considered a good faith purchaser?

If the owner of goods entrusts them to a merchant,the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.After the shirts were specially imprinted,but before they were mailed,Amanda called King Manufacturing to disavow the contract.The next day the sweatshirts were stolen.In this case:

A voidable title is no title.

With regard to Article 6 of the Uniform Commercial Code,which of the following is accurate?

Howard stole a computer and then sold it to his friend Ivan for $100.Ivan has:

Under a shipment contract,title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

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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