Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Under a shipment contract,the risk of loss passes to the buyer when the goods are delivered to the carrier.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Question 4

In a sale or return,title and risk of loss remain with the seller until the buyer ac?cepts the goods.

Accepted Answer

A) True 
 B)False

Question 5

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) B) and C)
F) B) and D) B

Question 6

NuStores accepts a shipment of QuikView-brand 3D HD DVD players from Open-Ur-Eyes,Inc.NuStores later discovers a defect in the players,revokes acceptance,and returns the players via Playback,Inc.During the return,the play?ers are lost.The loss is suffered by

Accepted Answer

A)  NuStores.
B)  Playback.
C)  QuikView.
D)  Open-Ur-Eyes.E) C) and D)
F) A) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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  True

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Wild Alaskan sockeye salmon that fill the hold of Dexter's fishing boat are fungible if the fish are

Accepted Answer

A)  alike naturally,by agreement,or by trade usage.
B)  fundamentally different.
C)  fun,good,and edible.
D)  rotting due to a broken freezer in the hold.E) B) and C)
F) None of the above

Question 11

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) A) and D)
F) All of the above

Question 12

Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC) .CCC mistakenly ships denim jackets,which Town re?jects and returns via Valu Transport,Inc.During the return,the jack?ets are lost.The loss is suffered by

Accepted Answer

A)  Town.
B)  Hidebound.
C)  Valu.
D)  CCC.E) A) and B)
F) A) and C)

Question 13

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 14

Finished Furnishings,Inc. ,agrees to lease an Oak Top-brand desk to Research Resources,Inc.(RRI) ,which agrees to pick it up at Streetside Warehouse.Before RRI retrieves the desk,it is stolen.The loss is suf?fered by

Accepted Answer

A)  Perfect Furnishings.
B)  Oak Top.
C)  Streetside Warehouse.
D)  RRI.E) B) and D)
F) B) and C)

Question 15

Harley's Home Store buys furniture from Relax-a-by Furniture,Inc.The parties agree that the furniture will be shipped "F.O.B.Relax-a-by's ware?house" to Harley's via Jiffy Shipping Corporation.The furniture is lost in transit.The loss is suffered by

Accepted Answer

A)  Jiffy Shipping.
B)  Relax-a-by Furniture.
C)  Harley's Home Store.
D)  F.O.B.E) B) and C)
F) A) and D)

Question 16

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) A) and B)
F) A) and D)

Question 17

Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company.Savory identifies the goods.Before they are shipped to Pie Sales,an insurable interest in the goods exists in

Accepted Answer

A)  Pie Sales and Savory Foods.
B)  ReadyMade and Savory Foods.
C)  Pie Sales and ReadyMade.
D)  all of the parties as tenants in common.E) A) and D)
F) None of the above

Question 18

A seller has an insurable interest in goods as long as the goods are in existence.

Accepted Answer

A) True 
 B)False

Question 19

The UCC has replaced the common law concept of title in part with the concept of risk of loss.

Accepted Answer

A) True 
 B)False

Question 20

Essen Corporation buys from Fallow Farms,Inc. ,a rice crop that Fallow plans to plant and harvest during the next growing season.Essen plans to sell the rice to Gourmet Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex?ists in

Accepted Answer

A)  Essen and Fallow,but not Gourmet Grocery.
B)  Essen,Fallow,and Gourmet Grocery.
C)  Essen only.
D)  Fallow only.E) A) and B)
F) All of the above

Exam 20: B: Title,risk,and Insurable Interest

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

Correct AnswerverifiedShow Answer

Under a shipment contract,the risk of loss passes to the buyer when the goods are delivered to the carrier.

Correct AnswerverifiedTrue

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

In a sale or return,title and risk of loss remain with the seller until the buyer ac?cepts the goods.

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 AnswerverifiedB

NuStores accepts a shipment of QuikView-brand 3D HD DVD players from Open-Ur-Eyes,Inc.NuStores later discovers a defect in the players,revokes acceptance,and returns the players via Playback,Inc.During the return,the play?ers are lost.The loss is suffered by

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Wild Alaskan sockeye salmon that fill the hold of Dexter's fishing boat are fungible if the fish are

Correct AnswerverifiedShow Answer

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

Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC) .CCC mistakenly ships denim jackets,which Town re?jects and returns via Valu Transport,Inc.During the return,the jack?ets are lost.The loss is suffered by

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

Finished Furnishings,Inc. ,agrees to lease an Oak Top-brand desk to Research Resources,Inc.(RRI) ,which agrees to pick it up at Streetside Warehouse.Before RRI retrieves the desk,it is stolen.The loss is suf?fered by

Correct AnswerverifiedShow Answer

Harley's Home Store buys furniture from Relax-a-by Furniture,Inc.The parties agree that the furniture will be shipped "F.O.B.Relax-a-by's ware?house" to Harley's via Jiffy Shipping Corporation.The furniture is lost in transit.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

Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company.Savory identifies the goods.Before they are shipped to Pie Sales,an insurable interest in the goods exists in

Correct AnswerverifiedShow Answer

A seller has an insurable interest in goods as long as the goods are in existence.

Correct AnswerverifiedShow Answer

The UCC has replaced the common law concept of title in part with the concept of risk of loss.

Correct AnswerverifiedShow Answer

Essen Corporation buys from Fallow Farms,Inc. ,a rice crop that Fallow plans to plant and harvest during the next growing season.Essen plans to sell the rice to Gourmet Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex?ists in

Correct AnswerverifiedShow Answer

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