Question 1

Both the buyer and the seller can have an insurable interest in identical goods at the same time.

Accepted Answer

A) True 
 B)False

Question 2

According to the UCC, one open term will cause a sales contract to fail for indefiniteness.

Accepted Answer

A) True 
 B)False

Question 3

If a sale involves crops that are to be harvested within twelve months, identification takes place when the crops are harvested.

Accepted Answer

A) True 
 B)False

Question 4

Under the UCC, an offeror must be notified within a reasonable time that the offeree has accepted.

Accepted Answer

A) True 
 B)False

Question 5

Swiftline Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by​

Accepted Answer

A)  ​mutually agreeing not to commit fraud. 
B)  ​repeating the terms in a phone call. 
C)  ​setting out the terms in a memo. 
D)  ​shaking hands on the deal.

Question 6

Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in​

Accepted Answer

A)  ​Spuds and Tater, but not Tasty Foods. 
B)  ​Spuds, Tater, and Tasty Foods. 
C)  ​Tater only. 
D)  ​none of the choices.

Question 7

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

Accepted Answer

A) True 
 B)False

Question 8

Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are lost. The loss is suffered by​

Accepted Answer

A)  Consumers Choice. 
B)  ​Digital Devices. 
C)  ​GoBack. 
D)  ​Consumers Choice's customers by an increase in prices of other goods.

Question 9

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when​

Accepted Answer

A)  ​Quality stores the drives. 
B)  ​Pipes & Culverts orders the drives. 
C)  ​Pipes & Culverts picks up the drives. 
D)  ​Quality gives Pipes & Culverts a warehouse receipt for the drives.

Question 10

Lexi pays Mobile Edge Electronics $600 and receives a new phone. Under the UCC, this is

Accepted Answer

A) a merchant's firm offer. 
B) a lease. 
C) a sale. 
D) a requirements contract.

Question 11

Safety Supply Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic Recovery, Inc., in Connecticut, "F.O.B. New York." Safety Supply arranges with US Truckline to transport the goods. The cost of the transport will be paid by​

Accepted Answer

A)  ​Safety Supply. 
B)  ​Toxic Recovery. 
C)  ​US Truckline. 
D)  ​Toxic Recovery's clients by an increase in the price of loss control services.

Question 12

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. Reynaldo ships the oranges "F.O.B. Quaff n' Quench" via Sham Shipping Company. The oranges rot in transit. The loss is suffered by​

Accepted Answer

A)  ​Quaff n' Quench. 
B)  Sham. 
C)  ​F.O.B. 
D)  ​Reynaldo.

Question 13

A seller with voidable title has the power to transfer good title to a good faith purchaser for value.

Accepted Answer

A) True 
 B)False

Question 14

Candy Corporation orders Delicioso-brand chocolate from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in​

Accepted Answer

A)  ​Candy Corporation and Edibles Distribution. 
B)  ​Delicioso and Edibles Distribution. 
C)  ​Candy Corporation and Delicioso. 
D)  ​all of the parties as tenants in common.

Question 15

Bert sells his car to Conrad for $5,000 and his bike to Del for $600. Bert sells his vinyl collection to Elena for $1,000 and his stock in Altogether Now, Inc.—a firm that markets an app for organizing digital music files—to Franz for $4,000. UCC Article 2 covers all of these transactions except the sale of

Accepted Answer

A) the car. 
B) the bike. 
C) the vinyl. 
D) the stock.

Question 16

If the goods are so nonconforming that the buyer has the right to reject them, the risk of loss does not pass to the buyer.
​

Accepted Answer

A) True 
 B)False

Question 17

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is​

Accepted Answer

A)  ​a bill of lading. 
B)  ​a destination contract. 
C)  ​a shipment contract. 
D)  ​a warehouse receipt.

Question 18

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by​

Accepted Answer

A)  ​Quest. 
B)  ​Trans-State. 
C)  ​RiverRun. 
D)  ​Sports Merchandise.

Question 19

Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.

Accepted Answer

A) True 
 B)False

Question 20

Ursula buys a Verismooth boat from a Watercraft store, which agrees to keep the boat for Ursula until she picks it up. Before Ursula gets the boat, an unforeseen tornado destroys the store and the boat. The loss of the boat is suffered by​

Accepted Answer

A)  ​Ursula. 
B)  ​Verismooth. 
C)  ​Watercraft. 
D)  ​the government agency that failed to foresee the tornado.

Exam 17: The Formation of Sales and Lease Contracts

Both the buyer and the seller can have an insurable interest in identical goods at the same time.

According to the UCC, one open term will cause a sales contract to fail for indefiniteness.

If a sale involves crops that are to be harvested within twelve months, identification takes place when the crops are harvested.

Under the UCC, an offeror must be notified within a reasonable time that the offeree has accepted.

Swiftline Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by​

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are lost. The loss is suffered by​

Lexi pays Mobile Edge Electronics $600 and receives a new phone. Under the UCC, this is

Safety Supply Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic Recovery, Inc., in Connecticut, "F.O.B. New York." Safety Supply arranges with US Truckline to transport the goods. The cost of the transport will be paid by​

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. Reynaldo ships the oranges "F.O.B. Quaff n' Quench" via Sham Shipping Company. The oranges rot in transit. The loss is suffered by​

A seller with voidable title has the power to transfer good title to a good faith purchaser for value.

Candy Corporation orders Delicioso-brand chocolate from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in​

If the goods are so nonconforming that the buyer has the right to reject them, the risk of loss does not pass to the buyer. ​

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is​

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by​

Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.

Ursula buys a Verismooth boat from a Watercraft store, which agrees to keep the boat for Ursula until she picks it up. Before Ursula gets the boat, an unforeseen tornado destroys the store and the boat. The loss of the boat is suffered by​

Swiftline Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are lost. The loss is suffered by

Safety Supply Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic Recovery, Inc., in Connecticut, "F.O.B. New York." Safety Supply arranges with US Truckline to transport the goods. The cost of the transport will be paid by

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. Reynaldo ships the oranges "F.O.B. Quaff n' Quench" via Sham Shipping Company. The oranges rot in transit. The loss is suffered by

Candy Corporation orders Delicioso-brand chocolate from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in

If the goods are so nonconforming that the buyer has the right to reject them, the risk of loss does not pass to the buyer.

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by

Ursula buys a Verismooth boat from a Watercraft store, which agrees to keep the boat for Ursula until she picks it up. Before Ursula gets the boat, an unforeseen tornado destroys the store and the boat. The loss of the boat is suffered by