Question 1

Which of the following statements is true of a lease?

Accepted Answer

A)  It is a transfer of the ownership of goods from one merchant to another. 
B)  It is a transfer of the right to possess and use goods belonging to another. 
C)  It is governed exclusively by Article 2 and Article 9 of the Uniform Commercial Code. 
D)  It is governed by the same principles of common law that predominantly govern the sale of goods. 
A)  It is a transfer of the ownership of goods from one merchant to another. 
B)  It is a transfer of the right to possess and use goods belonging to another. 
C)  It is governed exclusively by Article 2 and Article 9 of the Uniform Commercial Code. 
D)  It is governed by the same principles of common law that predominantly govern the sale of goods.

Question 2

A lease of goods is a transfer of the right to possess and use goods belonging to another.

Accepted Answer

A) True 
 B)False

Question 3

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 4

When a contract is silent about the time for performance:

Accepted Answer

A)  the Uniform Commercial Code takes the same position as the common law. 
B)  it cannot be terminated at any time by either party. 
C)  the payment for the goods is due at the time and place at which the seller deems convenient. 
D)  it can be terminated by either party without giving any notice. 
A)  the Uniform Commercial Code takes the same position as the common law. 
B)  it cannot be terminated at any time by either party. 
C)  the payment for the goods is due at the time and place at which the seller deems convenient. 
D)  it can be terminated by either party without giving any notice.

Question 5

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 6

A fixed price is essential to the creation of a binding sales contract.

Accepted Answer

A) True 
 B)False

Question 7

Discuss whether a fixed price is essential to the creation of a binding sales contract.

Accepted Answer

A fixed price is not essential to the cr

Question 8

Distinguish between "FOB" and "FOB destination" contracts.

Accepted Answer

If the contract requires the seller to s

Question 9

Jessica went to Angel Beauty Salon to get a facial. The cosmetic products used by the beautician contained certain harmful chemicals that reacted with Jessica's face. This resulted in several rashes and spots on her face. Which of the following statements is true of Article 2 of the Uniform Commercial Code in determining the rights and responsibilities of the parties?

Accepted Answer

A)  Article 2 of the Uniform Commercial Code would not apply because Jessica entered into a contract which was predominantly a service contract. 
B)  Article 2 of the Uniform Commercial Code would not apply because Jessica is not a merchant. 
C)  Article 2 of the Uniform Commercial Code would apply because any contract involving the use of cosmetic products is governed by the Code. 
D)  Article 2 of the Uniform Commercial Code would apply because the cosmetic products are not Jessica's tangible personal property. 
A)  Article 2 of the Uniform Commercial Code would not apply because Jessica entered into a contract which was predominantly a service contract. 
B)  Article 2 of the Uniform Commercial Code would not apply because Jessica is not a merchant. 
C)  Article 2 of the Uniform Commercial Code would apply because any contract involving the use of cosmetic products is governed by the Code. 
D)  Article 2 of the Uniform Commercial Code would apply because the cosmetic products are not Jessica's tangible personal property.

Question 10

Sales on approval are primarily _____ transactions.

Accepted Answer

A)  seller 
B)  merchant 
C)  consumer 
D)  nonmerchant 
A)  seller 
B)  merchant 
C)  consumer 
D)  nonmerchant

Exam 19: Formation and Terms of Sales Contracts

Which of the following statements is true of a lease?

A lease of goods is a transfer of the right to possess and use goods belonging to another.

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

When a contract is silent about the time for performance:

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

A fixed price is essential to the creation of a binding sales contract.

Discuss whether a fixed price is essential to the creation of a binding sales contract.

Distinguish between "FOB" and "FOB destination" contracts.

Sales on approval are primarily _____ transactions.

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 Property

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 Remedies

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

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 Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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