Question 1

Fungible goods are goods that can be delivered only by transport.

Accepted Answer

A) True 
 B)False

Question 2

Marine Recreation,Inc.,allows Nels to take a Marine Recreation boat for a "test run." Nels tries the boat for a few hours,returns,and buys it.This is

Accepted Answer

A)  a bailment.
B)  a consignment.
C)  a sale on approval.
D)  a sale or return.E) A) and B)
F) B) and D)

Question 3

If a sale involves crops that are to be harvested within twelve months,iden?tification takes place when the crops are planted.

Accepted Answer

A) True 
 B)False

Question 4

Laraby,a representative for Merchandise Shipping Company,delivers a bill of lading to Caitlin,the owner of Dockside Warehouse.A bill of lading is

Accepted Answer

A)  an invoice for payment for loading and carting verified by a seller.
B)  an order to ship goods signed by a buyer.
C)  a receipt for goods signed by a carrier.
D)  a receipt issued by a warehouser for goods in a warehouse.E) C) and D)
F) B) and C)

Question 5

Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics,Inc.The hard drives,which Retail Electronics ex?pressly requires to have certain amounts of memory,are to be shipped "F.O.B.Retail Electronics distribution center in Memphis,TN." When the drives arrive,Retail Electronics rejects them and informs Quality Computer,claiming that the drives do not conform to Retail Electronics' memory re?quirement.A few hours later,the drives are destroyed in a fire at Retail Electronics' distribution center.Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?

Accepted Answer

No,because the goods were nonconforming,...

Question 6

Catchy Gadgets Corporation and Discount Outlets,Inc.,enter into a contract for a sale of kitchenware.The contract requires Catchy to deliver the goods to Rapido Carrier Company for transport to Discount's warehouse.Risk of loss passes to Discount when

Accepted Answer

A)  Catchy delivers the goods to Rapido.
B)  Catchy and Discount enter into their contract.
C)  Rapido transports the goods to Discount's warehouse.
D)  Discount sells the goods to its customers.E) None of the above
F) A) and D)

Question 7

If a buyer accepts a shipment of goods and later discovers a defect,acceptance can be revoked.

Accepted Answer

A) True 
 B)False

Question 8

Matrix Material Corporation in New Jersey sells fifty tons of fabric to Natural Fit Clothing,Inc.,in Ohio,"F.O.B.New Jersey." Matrix arranges with Outbound Truckline to transport the goods.The cost of the transport will be paid by

Accepted Answer

A)  Matrix.
B)  Natural Fit.
C)  New Jersey.
D)  Outbound.E) A) and B)
F) A) and C)

Question 9

Delicioso Tea Company and Savory Stores,Inc.,enter into a contract for a sale of organic tea.The contract includes the term "F.O.B.River City," which is Savory's location.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.E) None of the above
F) All of the above

Question 10

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Accepted Answer

A) True 
 B)False

Question 11

Uri sells 100 cases of vitamins to Wanda,but before she takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Accepted Answer

A)  identification.
B)  insurable interest.
C)  risk of loss.
D)  title.E) All of the above
F) None of the above

Question 12

In a sale on approval,a buyer takes goods primarily for resale,with a right to return any goods that fail to sell.

Accepted Answer

A) True 
 B)False

Question 13

If a sale involves unborn animals to be born within twelve months after contracting,identification takes place when the animals are born.

Accepted Answer

A) True 
 B)False

Question 14

In the following situations,two parties claim the same goods.Who is most likely to prevail in each circumstance? Explain.
(a)Olan steals Phil's television set and sells it to Quincy,an innocent purchaser,for value.Phil learns Quincy has the set and demands its return.
(b)Riley takes his television set for repair to Silky,a merchant who sells new and used television sets.By accident,one of Silky's employees sells the set to Tuna,an innocent purchaser-customer,who takes possession.Riley wants his set back from Tuna.

Accepted Answer

(a)A buyer acquires whatever title the s...

Question 15

If a lessor is a merchant,the risk of loss passes to a lessee on the lessee's receipt of the goods.

Accepted Answer

A) True 
 B)False

Question 16

Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by

Accepted Answer

A)  Mitchell.
B)  New Grain Fields.
C)  Farm County Trucking.
D)  all of the parties as tenants in common in equal measure.E) A) and D)
F) B) and C)

Question 17

If an owner holds fungible goods as a tenant in common,he or she cannot pass title to the goods without the other owners' acquiescence.

Accepted Answer

A) True 
 B)False

Question 18

Leasing Equipment Corporation (LEC) agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be

Accepted Answer

A)  in existence and identified as the goods in the contract.
B)  in LEC's physical possession.
C)  in Mapmakers's physical possession.
D)  listed in a document of title and filed in the appropriate state office.E) B) and C)
F) C) and D)

Question 19

A consignment is treated as a sale or return and governed by Article 2.

Accepted Answer

A) True 
 B)False

Question 20

When a seller keeps the goods for pickup,if the seller is a merchant,the risk of loss passes to a buyer on tender of delivery.

Accepted Answer

A) True 
 B)False

Exam 20: Title, risk, and Insurable Interest

Leasing Equipment Corporation (LEC) agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be

Correct Answer
verified

Correct Answer
verified
(a)A buyer acquires whatever title the s...
View Answer

If a sale involves unborn animals to be born within twelve months after contracting,identification takes place when the animals are born.

Correct Answer
verified

Fungible goods are goods that can be delivered only by transport.

Correct Answer
verified

Marine Recreation,Inc.,allows Nels to take a Marine Recreation boat for a "test run." Nels tries the boat for a few hours,returns,and buys it.This is

Correct Answer
verified

When a seller keeps the goods for pickup,if the seller is a merchant,the risk of loss passes to a buyer on tender of delivery.

Correct Answer
verified

Correct Answer
verified
No,because the goods were nonconforming,...
View Answer

Laraby,a representative for Merchandise Shipping Company,delivers a bill of lading to Caitlin,the owner of Dockside Warehouse.A bill of lading is

Correct Answer
verified

Delicioso Tea Company and Savory Stores,Inc.,enter into a contract for a sale of organic tea.The contract includes the term "F.O.B.River City," which is Savory's location.This means that the contract is

Correct Answer
verified

If a sale involves crops that are to be harvested within twelve months,iden?tification takes place when the crops are planted.

Correct Answer
verified

In a sale on approval,a buyer takes goods primarily for resale,with a right to return any goods that fail to sell.

Correct Answer
verified

Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by

Correct Answer
verified

Catchy Gadgets Corporation and Discount Outlets,Inc.,enter into a contract for a sale of kitchenware.The contract requires Catchy to deliver the goods to Rapido Carrier Company for transport to Discount's warehouse.Risk of loss passes to Discount when

Correct Answer
verified

A consignment is treated as a sale or return and governed by Article 2.

Correct Answer
verified

If a lessor is a merchant,the risk of loss passes to a lessee on the lessee's receipt of the goods.

Correct Answer
verified

Uri sells 100 cases of vitamins to Wanda,but before she takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Correct Answer
verified

If an owner holds fungible goods as a tenant in common,he or she cannot pass title to the goods without the other owners' acquiescence.

Correct Answer
verified

If a buyer accepts a shipment of goods and later discovers a defect,acceptance can be revoked.

Correct Answer
verified

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Correct Answer
verified

Matrix Material Corporation in New Jersey sells fifty tons of fabric to Natural Fit Clothing,Inc.,in Ohio,"F.O.B.New Jersey." Matrix arranges with Outbound Truckline to transport the goods.The cost of the transport will be paid by

Correct Answer
verified

Exam 20: Title, risk, and Insurable Interest

Leasing Equipment Corporation (LEC) agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be

Correct AnswerverifiedShow Answer

Correct Answerverified(a)A buyer acquires whatever title the s...View AnswerShow Answer

If a sale involves unborn animals to be born within twelve months after contracting,identification takes place when the animals are born.

Correct AnswerverifiedShow Answer

Fungible goods are goods that can be delivered only by transport.

Correct AnswerverifiedShow Answer

Marine Recreation,Inc.,allows Nels to take a Marine Recreation boat for a "test run." Nels tries the boat for a few hours,returns,and buys it.This is

Correct AnswerverifiedShow Answer

When a seller keeps the goods for pickup,if the seller is a merchant,the risk of loss passes to a buyer on tender of delivery.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNo,because the goods were nonconforming,...View AnswerShow Answer

Laraby,a representative for Merchandise Shipping Company,delivers a bill of lading to Caitlin,the owner of Dockside Warehouse.A bill of lading is

Correct AnswerverifiedShow Answer

Delicioso Tea Company and Savory Stores,Inc.,enter into a contract for a sale of organic tea.The contract includes the term "F.O.B.River City," which is Savory's location.This means that the contract is

Correct AnswerverifiedShow Answer

If a sale involves crops that are to be harvested within twelve months,iden?tification takes place when the crops are planted.

Correct AnswerverifiedShow Answer

In a sale on approval,a buyer takes goods primarily for resale,with a right to return any goods that fail to sell.

Correct AnswerverifiedShow Answer

Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by

Correct AnswerverifiedShow Answer

Catchy Gadgets Corporation and Discount Outlets,Inc.,enter into a contract for a sale of kitchenware.The contract requires Catchy to deliver the goods to Rapido Carrier Company for transport to Discount's warehouse.Risk of loss passes to Discount when

Correct AnswerverifiedShow Answer

A consignment is treated as a sale or return and governed by Article 2.

Correct AnswerverifiedShow Answer

If a lessor is a merchant,the risk of loss passes to a lessee on the lessee's receipt of the goods.

Correct AnswerverifiedShow Answer

Uri sells 100 cases of vitamins to Wanda,but before she takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Correct AnswerverifiedShow Answer

If an owner holds fungible goods as a tenant in common,he or she cannot pass title to the goods without the other owners' acquiescence.

Correct AnswerverifiedShow Answer

If a buyer accepts a shipment of goods and later discovers a defect,acceptance can be revoked.

Correct AnswerverifiedShow Answer

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Correct AnswerverifiedShow Answer

Matrix Material Corporation in New Jersey sells fifty tons of fabric to Natural Fit Clothing,Inc.,in Ohio,"F.O.B.New Jersey." Matrix arranges with Outbound Truckline to transport the goods.The cost of the transport will be paid by

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
(a)A buyer acquires whatever title the s...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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No,because the goods were nonconforming,...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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