Question 1

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

Accepted Answer

A)   present sale.
B)   COD sale.
C)   contract to sell.
D)   sale on approval. C

Question 2

Minor saw an advertisement in a local newspaper that read: "Try a new X-Acto Electric Knife in your own home on approval for five days. No obligation to buy. Fill out the coupon and mail it in today." Minor mailed in the coupon and received the knife. She liked the knife and kept it past the approval period. Title and risk of loss legally passed to Minor

Accepted Answer

A)   when she mailed the coupon to the seller.
B)   when the knife was delivered to her home.
C)   when she kept the knife beyond the five-day period.
D)   at no time, because approval was never given.

Question 3

When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Accepted Answer

A) True 
 B)False

Question 4

A contract to sell involves ____________________.

Accepted Answer

The answer of A contract to sell involves ____________________....

Question 5

A merchant who has temporary possession of a customer's goods can pass on a(n) ____________________ title to a buyer of goods who purchases them without knowing that the goods do not belong to the merchant.

Accepted Answer

The answer of A merchant who has temporary possession of...

Question 6

Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

Accepted Answer

A) True 
 B)False

Question 7

Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?

Accepted Answer

A)   The Arco Corporation will not suffer the loss because risk of loss passed to Rosco when the agreement was made.
B)   Rosco will suffer the loss because risk of loss passed to him when the goods were delivered to the common carrier at Buffalo.
C)   The Arco Corporation will suffer the loss because risk of loss did not pass to Rosco until the goods arrived at Salem.
D)   Rosco will not suffer the loss because risk of loss did not pass to him until the goods were delivered to his door.

Question 8

A contract to sell is a sale of identified goods.

Accepted Answer

A) True 
 B)False

Question 9

Title determines whether goods are the subject of a present sale or a contract to sell.

Accepted Answer

A) True 
 B)False

Question 10

Goods that are not in existence and not yet identified are called

Accepted Answer

A)   personal goods.
B)   unidentified goods.
C)   future goods.
D)   unsatisfactory goods.

Question 11

A sale on approval is a present sale.

Accepted Answer

A) True 
 B)False

Question 12

Under what circumstances can a person in possession of personal property transfer a better title than he/she has?

Accepted Answer

(a) a buyer with a voidable title can tr...

Question 13

Under the UCC,

Accepted Answer

A)   risk of loss is placed on the party who has title.
B)   risk of loss is always placed on the buyer.
C)   risk of loss is always placed on the seller.
D)   none of these.

Question 14

Roscoe, of Cleveland, Ohio, ordered twenty computers from the Rand Computer Corporation in St. Louis, Missouri, terms FOB St. Louis. The computers were damaged in transit from St. Louis to Cleveland. The loss is borne

Accepted Answer

A)   by Roscoe.
B)   by Roscoe and Rand Computer Corporation.
C)   50 percent by Roscoe and 50 percent by Rand Computer Corporation.
D)   by Rand Computer Corporation.

Question 15

Kim purchased a portable TV from Edgar without realizing that the TV was stolen. Kim received

Accepted Answer

A)   no title.
B)   a valid title.
C)   a voidable title.
D)   formal title.

Question 16

A(n) ____________________ sale occurs when a merchant sells all or a major part of the business assets.

Accepted Answer

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Question 17

Jackson bought a typewriter from Kline for $100. Larson proved that the typewriter was stolen from him and demanded its return. Must Jackson do so?

Accepted Answer

Yes. A person in possession of...

Question 18

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

Accepted Answer

A)   both buyer and seller must be merchants.
B)   the buyer must be purchasing the goods for resale.
C)   risk of loss for the goods passes after the trial period is up.
D)   title to goods passes to the buyer on the delivery of the goods to the buyer for trial purposes.

Question 19

Jones, a merchant does not deliver merchandise to customers but instead requires customers to pick up the merchandise at his place of business. When does risk of loss pass?

Accepted Answer

A)   When the customer takes physical possession of the merchandise
B)   When the contract is made
C)   A reasonable time after the purchase is made but before delivery to the customer
D)   When the buyer receives a negotiable document of title A

Question 20

Under Article 2 of the UCC which of the following factors is the most important in determining which party bears the risk of loss in a contract for the sale of goods

Accepted Answer

A)   how the goods were lost.
B)   who has title to the goods.
C)   the shipping terms in a sales contract.
D)   the method of shipping the goods.

Exam 16: The Sales Contract: Transfer of Title and Risk of Loss

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

Correct Answer
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C

Correct Answer
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When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Correct Answer
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A contract to sell involves ____________________.

Correct Answer
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A merchant who has temporary possession of a customer's goods can pass on a(n) ____________________ title to a buyer of goods who purchases them without knowing that the goods do not belong to the merchant.

Correct Answer
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Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

Correct Answer
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Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?

Correct Answer
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A contract to sell is a sale of identified goods.

Correct Answer
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Title determines whether goods are the subject of a present sale or a contract to sell.

Correct Answer
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Goods that are not in existence and not yet identified are called

Correct Answer
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A sale on approval is a present sale.

Correct Answer
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Under what circumstances can a person in possession of personal property transfer a better title than he/she has?

Correct Answer
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(a) a buyer with a voidable title can tr...
View Answer

Under the UCC,

Correct Answer
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Roscoe, of Cleveland, Ohio, ordered twenty computers from the Rand Computer Corporation in St. Louis, Missouri, terms FOB St. Louis. The computers were damaged in transit from St. Louis to Cleveland. The loss is borne

Correct Answer
verified

Kim purchased a portable TV from Edgar without realizing that the TV was stolen. Kim received

Correct Answer
verified

A(n) ____________________ sale occurs when a merchant sells all or a major part of the business assets.

Correct Answer
verified
bulk

Jackson bought a typewriter from Kline for $100. Larson proved that the typewriter was stolen from him and demanded its return. Must Jackson do so?

Correct Answer
verified
Yes. A person in possession of...
View Answer

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

Correct Answer
verified

Jones, a merchant does not deliver merchandise to customers but instead requires customers to pick up the merchandise at his place of business. When does risk of loss pass?

Correct Answer
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A

Under Article 2 of the UCC which of the following factors is the most important in determining which party bears the risk of loss in a contract for the sale of goods

Correct Answer
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Exam 16: The Sales Contract: Transfer of Title and Risk of Loss

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Correct AnswerverifiedShow Answer

A contract to sell involves ____________________.

Correct AnswerverifiedShow Answer

A merchant who has temporary possession of a customer's goods can pass on a(n) ____________________ title to a buyer of goods who purchases them without knowing that the goods do not belong to the merchant.

Correct AnswerverifiedShow Answer

Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

Correct AnswerverifiedShow Answer

Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?

Correct AnswerverifiedShow Answer

A contract to sell is a sale of identified goods.

Correct AnswerverifiedShow Answer

Title determines whether goods are the subject of a present sale or a contract to sell.

Correct AnswerverifiedShow Answer

Goods that are not in existence and not yet identified are called

Correct AnswerverifiedShow Answer

A sale on approval is a present sale.

Correct AnswerverifiedShow Answer

Under what circumstances can a person in possession of personal property transfer a better title than he/she has?

Correct Answerverified(a) a buyer with a voidable title can tr...View AnswerShow Answer

Under the UCC,

Correct AnswerverifiedShow Answer

Roscoe, of Cleveland, Ohio, ordered twenty computers from the Rand Computer Corporation in St. Louis, Missouri, terms FOB St. Louis. The computers were damaged in transit from St. Louis to Cleveland. The loss is borne

Correct AnswerverifiedShow Answer

Kim purchased a portable TV from Edgar without realizing that the TV was stolen. Kim received

Correct AnswerverifiedShow Answer

A(n) ____________________ sale occurs when a merchant sells all or a major part of the business assets.

Correct Answerverifiedbulk

Jackson bought a typewriter from Kline for $100. Larson proved that the typewriter was stolen from him and demanded its return. Must Jackson do so?

Correct AnswerverifiedYes. A person in possession of...View AnswerShow Answer

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

Correct AnswerverifiedShow Answer

Jones, a merchant does not deliver merchandise to customers but instead requires customers to pick up the merchandise at his place of business. When does risk of loss pass?

Correct AnswerverifiedA

Under Article 2 of the UCC which of the following factors is the most important in determining which party bears the risk of loss in a contract for the sale of goods

Correct AnswerverifiedShow Answer

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(a) a buyer with a voidable title can tr...
View Answer

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Yes. A person in possession of...
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