Question 1

Parties to a contract cannot change the UCC's rules regarding when title passes and when risk of loss passes.

Accepted Answer

A) True 
 B)False

Question 2

Frieda purchased a large desk at a garage sale.She asked the seller if she could leave the desk at the side of the road so she could go home and get her pickup truck.When she returned,she found that the desk had been struck by a car and demolished.Can Frieda get her money back?

Accepted Answer

A)  Yes,because the seller allowed Frieda to leave the goods until she takes possession.
B)  No,because the desk was available for Frieda to take when she purchased it and thus she bore the risk of loss.
C)  No,because,even though the desk was available for Frieda to take when she purchased it,the risk of loss does not transfer until delivery.
D)  Yes,because the risk of loss does not transfer until she takes possession.
E)  Yes,because the goods were not tendered until she takes possession.F) None of the above
G) C) and E)

Question 3

[Singapore Sculptures] Mavis purchased a sculpture for her home in Hawaii from Juno,who owns an art gallery in Singapore.Mavis tells Juno she is concerned about shipping because there is no agreement between Singapore and Indonesia regarding piracy and she wants to ensure that Juno will be responsible for any damage to the sculpture until Mavis can pick it up on the dock when the ship arrives in Hawaii.Juno tells Mavis there are no longer any piracy concerns in the area and that he will be responsible for the sculpture until it is removed from the ship in Hawaii.Another customer,Adler,also purchases a sculpture.Juno delivers both sculptures to the dock.Mavis' sculpture is accompanied by their contract and Adler's sculpture is accompanied by a document containing the words "Deliver to the Order of Juno",and is endorsed by Juno.The ship travels through a storm,capsizes,and the sculptures are destroyed.
-What shipping term should Mavis include in the contract to ensure Juno carries the risk of loss until the sculpture leaves the ship?

Accepted Answer

A)  Delivery ex ship
B)  C&F
C)  FAS
D)  FOB
E)  CIFF) None of the above
G) A) and B)

Question 4

Which of the following is true regarding the status of a common carrier in relation to the seller?

Accepted Answer

A)  The common carrier is an employee of the seller.
B)  The common carrier is an agent of the seller.
C)  The common carrier is a true carrier of the seller.
D)  The common carrier is an independent contractor.
E)  The common carrier is both an employee and an agent of the seller.F) B) and D)
G) B) and E)

Question 5

When a seller transfers a void title to a good-faith buyer,the title is considered ________.

Accepted Answer

A)  Voidable
B)  Good
C)  Substantiated
D)  Excised
E)  VoidF) B) and E)
G) A) and E)

Question 6

Which type of contract requires that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier,but not guarantee the safety of goods to their destination?

Accepted Answer

A)  Risk contracts
B)  Common-carrier contracts
C)  Origin contracts
D)  Transfer contracts
E)  Destination contractsF) B) and D)
G) B) and E)

Question 7

In a conditional sales contract,a contract is a ________ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Accepted Answer

A)  Sale-on-approval contract
B)  Condition-or-sale contract
C)  Return-or-purchase
D)  Sale-or-return contract
E)  Return-or-saleF) B) and E)
G) A) and B)

Question 8

A contract is a sale-or-return contract if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Accepted Answer

A) True 
 B)False

Question 9

Is the manager correct in saying that Julio's only recourse is against Ramona?

Accepted Answer

A)  The manager is incorrect,and Julio can sue Slick Sid's.
B)  The manager is correct.
C)  The manager is incorrect only if Julio has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
D)  The manager is correct only if Ramona's deal was for less than 10% of the fair market value of the car.
E)  The manager is correct only if Ramona can be found.F) B) and E)
G) C) and D)

Question 10

Who has the risk of loss for the sculpture purchased by Adler?

Accepted Answer

A)  Adler,because Juno endorsed a negotiable instrument to him.
B)  The ship,because it had possession of the sculpture at the time of the loss.
C)  Juno,because the document contained the words "deliver to the order of Adler".
D)  Adler,because the contract was silent as to who bore the risk of loss.
E)  Juno,because the contract was silent as to who bore the risk of loss.F) A) and E)
G) B) and C)

Question 11

Which of the following statements is true about an insurable interest?

Accepted Answer

A)  It is not relevant when an insurable interest is created.
B)  Both the buyer and seller can insure themselves for potential damage to goods
C)  Only the seller can insure itself for potential damage to goods.
D)  An insurable interest is the right to insure goods in one's possession.
E)  Only the buyer can insure itself for potential damage to goods.F) C) and D)
G) A) and E)

Question 12

When a sale itself is contingent on approval,which of the following occurs?

Accepted Answer

A)  A transferable contract
B)  A conditional sales contract
C)  An unapproved contract
D)  An average delivery contract
E)  A goods-in-transfer contractF) A) and B)
G) B) and C)

Question 13

What is the term for the kind of title Doris had?

Accepted Answer

A)  Void
B)  Absolute
C)  Good
D)  Illegal
E)  VoidableF) D) and E)
G) A) and E)

Question 14

Which of the following is held when someone unknowingly purchases stolen goods?

Accepted Answer

A)  Substantiated title
B)  Voidable title
C)  Void title
D)  Examined title
E)  Good titleF) A) and B)
G) C) and D)

Question 15

What type of document is the one containing the words "Deliver to the Order of JunoAdler",which accompanies Adler's sculpture?

Accepted Answer

A)  A good in bailment
B)  A non-negotiable document of title
C)  A contract
D)  A negotiable document of title.
E)  Another type of instrument showing ownership that is not a negotiable or nonnegotiable document of title.F) A) and E)
G) D) and E)

Question 16

Which of the following statements accurately describes conditional contracts?

Accepted Answer

A)  Sale-on-approval contracts and sale-or-return contracts,but not condition-or-sale contracts
B)  Sale-on-approval contracts,sale-or-return contracts,and condition-or-sale contracts
C)  Sale-on-approval contracts,but not sale-or-return or condition-or-sale contracts
D)  Sale-or-return contracts and condition-or-sale contracts,but not sale-on-approval contracts
E)  Condition-or-sale contracts and sale-on-approval contracts,but not sale-or-return contractsF) A) and D)
G) C) and D)

Question 17

What does "FOB" mean,when used as a shipping term?

Accepted Answer

A)  Freedom of Board
B)  Free on Board
C)  Free of Basis
D)  Fee on Basis
E)  Fee on BoardF) None of the above
G) A) and C)

Question 18

Delivering a car to a merchant for repair cannot qualify as an entrustment.

Accepted Answer

A) True 
 B)False

Question 19

With regard to the damage to the formal ball gowns,who bears the risk of loss?

Accepted Answer

A)  Cleo,because she is the buyer in a sale-or-return contract
B)  Cleo,because under a sale-or-return contract,she can return the dresses.
C)  Cleo,because the dresses are goods in bailment
D)  Kool Klothes,because it is the seller in a sale-or-return contract
E)  Kool Klothes,because it is a merchant and in a simple delivery contract,risk of loss transfers on delivery of the goods to the buyerF) None of the above
G) C) and D)

Question 20

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Accepted Answer

A)  An average delivery contract
B)  A conditional sales contract
C)  A goods-in-transfer contract
D)  A simple delivery contract
E)  A goods-in-bailment contractF) None of the above
G) A) and D)

Exam 22: Title,risk of Loss,and Insurable Interest

What type of document is the one containing the words "Deliver to the Order of JunoAdler",which accompanies Adler's sculpture?

Correct Answer
verified

What does "FOB" mean,when used as a shipping term?

Correct Answer
verified

Which of the following is true regarding the status of a common carrier in relation to the seller?

Correct Answer
verified

With regard to the damage to the formal ball gowns,who bears the risk of loss?

Correct Answer
verified

A contract is a sale-or-return contract if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Correct Answer
verified

Which type of contract requires that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier,but not guarantee the safety of goods to their destination?

Correct Answer
verified

Which of the following statements is true about an insurable interest?

Correct Answer
verified

Delivering a car to a merchant for repair cannot qualify as an entrustment.

Correct Answer
verified

What is the term for the kind of title Doris had?

Correct Answer
verified

Who has the risk of loss for the sculpture purchased by Adler?

Correct Answer
verified

When a seller transfers a void title to a good-faith buyer,the title is considered ________.

Correct Answer
verified

When a sale itself is contingent on approval,which of the following occurs?

Correct Answer
verified

Is the manager correct in saying that Julio's only recourse is against Ramona?

Correct Answer
verified

Parties to a contract cannot change the UCC's rules regarding when title passes and when risk of loss passes.

Correct Answer
verified

Which of the following statements accurately describes conditional contracts?

Correct Answer
verified

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Correct Answer
verified

Which of the following is held when someone unknowingly purchases stolen goods?

Correct Answer
verified

Frieda purchased a large desk at a garage sale.She asked the seller if she could leave the desk at the side of the road so she could go home and get her pickup truck.When she returned,she found that the desk had been struck by a car and demolished.Can Frieda get her money back?

Correct Answer
verified

In a conditional sales contract,a contract is a ________ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Correct Answer
verified

Correct Answer
verified

Exam 22: Title,risk of Loss,and Insurable Interest

What type of document is the one containing the words "Deliver to the Order of JunoAdler",which accompanies Adler's sculpture?

Correct AnswerverifiedShow Answer

What does "FOB" mean,when used as a shipping term?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the status of a common carrier in relation to the seller?

Correct AnswerverifiedShow Answer

With regard to the damage to the formal ball gowns,who bears the risk of loss?

Correct AnswerverifiedShow Answer

A contract is a sale-or-return contract if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Correct AnswerverifiedShow Answer

Which type of contract requires that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier,but not guarantee the safety of goods to their destination?

Correct AnswerverifiedShow Answer

Which of the following statements is true about an insurable interest?

Correct AnswerverifiedShow Answer

Delivering a car to a merchant for repair cannot qualify as an entrustment.

Correct AnswerverifiedShow Answer

What is the term for the kind of title Doris had?

Correct AnswerverifiedShow Answer

Who has the risk of loss for the sculpture purchased by Adler?

Correct AnswerverifiedShow Answer

When a seller transfers a void title to a good-faith buyer,the title is considered ________.

Correct AnswerverifiedShow Answer

When a sale itself is contingent on approval,which of the following occurs?

Correct AnswerverifiedShow Answer

Is the manager correct in saying that Julio's only recourse is against Ramona?

Correct AnswerverifiedShow Answer

Parties to a contract cannot change the UCC's rules regarding when title passes and when risk of loss passes.

Correct AnswerverifiedShow Answer

Which of the following statements accurately describes conditional contracts?

Correct AnswerverifiedShow Answer

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Correct AnswerverifiedShow Answer

Which of the following is held when someone unknowingly purchases stolen goods?

Correct AnswerverifiedShow Answer

Frieda purchased a large desk at a garage sale.She asked the seller if she could leave the desk at the side of the road so she could go home and get her pickup truck.When she returned,she found that the desk had been struck by a car and demolished.Can Frieda get her money back?

Correct AnswerverifiedShow Answer

In a conditional sales contract,a contract is a ________ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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