Question 1

Mark, a college student, agreed to sell his horse to Henry for $1,000. The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse. Henry paid Mark the money, patted the horse and said, "I'm glad you're mine, you beauty," and drove off. Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild. Has there been a sale?

Accepted Answer

A)   No, not until delivery to Idlewild.
B)   No, not until Henry sees the horse again.
C)   Yes, since Henry already paid for it.
D)   Yes, since the contract was made earlier in the day.E) C) and D)
F) B) and D)

Question 2

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

Accepted Answer

A)   if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss.
B)   Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance.
C)   Zach will bear the loss, whether he has insurance or not.
D)   Kevin and Zach will equally share the loss.E) A) and D)
F) B) and C)

Question 3

Everett bought a washer and dryer for $1,200 from Neely Appliances, which was to deliver the set in two days, on its regular delivery date for Everett's area. However, on the night of the sale, Neely's suffered an accidental fire and the washer and dryer were destroyed. Who has the risk of loss? Who would have the risk of loss if Everett had instead bought a used washer and dryer from his neighbor who was having a moving sale, and the washer and dryer were destroyed after Everett had paid for them and after the neighbor made them available to Everett but before he picked them up?

Accepted Answer

In the first situation, the risk of loss...

Question 4

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

Accepted Answer

A) True 
 B)False

Question 5

a. What is a bulk transfer? 
b. What is the purpose of bulk sales law? 
c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

Accepted Answer

a. A bulk transfer is a merchant's trans...

Question 6

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

Accepted Answer

A)   at the time and place of contracting under all circumstances.
B)   when a document of title is created if a negotiable document of title is involved.
C)   when the goods are identified if they were not identified at the time of contracting.
D)   at the time the seller completes performance.E) B) and D)
F) A) and D)

Question 7

With regard to Article 6 of the Uniform Commercial Code, which of the following is accurate?

Accepted Answer

A)   The National Conference of Commissioners on Uniform State Laws and the American Law Institute jointly issued a recommendation stating "that changes in the business and legal contexts in which sales are conducted have made regulation of bulk sales necessary."
B)   Nearly all of the states have repealed Article 6 of the UCC.
C)   Article 60 is a revision of Article 6.
D)   All of these are accurate.
E)   None of these are accurate.F) A) and C)
G) None of the above

Question 8

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

Accepted Answer

A) True 
 B)False

Question 9

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer?

Accepted Answer

A)   At such time as the contract of sale was entered.
B)   At such time as the buyer receives the negotiable document of title.
C)   When the seller tenders a nonnegotiable document of title to the bailee.
D)   When the bailee is orally notified of the sale.E) None of the above
F) C) and D)

Question 10

Under a shipment contract, title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

Accepted Answer

A) True 
 B)False

Question 11

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is necessary to be considered a good faith purchaser?

Accepted Answer

A)   The purchaser must act honestly.
B)   The purchaser must give value for the item.
C)   The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor.
D)   All of these are necessary.E) A) and C)
F) B) and D)

Question 13

A void title may allow good title to pass in special circumstances.

Accepted Answer

A) True 
 B)False

Question 14

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

Accepted Answer

A)   unless the parties expressly specify that the contract requires the seller to deliver to a particular destination, the contract is generally considered to be a shipment contract.
B)   unless the parties expressly designate the type of contract, it will be interpreted to be a destination contract.
C)   goods in the possession of a bailee which are to be delivered without being moved will have the risk of loss pass to the buyer when the buyer receives a negotiable document of title.
D)   express, specific provisions in a contract control as long as they are not unconscionable or grossly unfair to one of the parties.E) A) and C)
F) B) and D)

Question 15

Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:

Accepted Answer

A)   good title to the computer, because he paid for it.
B)   a voidable title to the computer.
C)   a void title to the computer.
D)   good title to the computer, because he is a good faith purchaser for value.E) A) and B)
F) B) and D)

Question 16

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Accepted Answer

A)   a bailment
B)   a sale on approval
C)   a sale or return
D)   entrusting to a merchantE) A) and C)
F) B) and C)

Question 17

Under the CISG:

Accepted Answer

A)   loss of, but not damage to, the goods after the risk of loss has passed to the buyer discharges the buyer from the obligation to pay the purchase price.
B)   if the sales contract involves the carriage of the goods and the seller is not obligated to hand them over at a particular destination, risk of loss passes to the buyer when the goods are handed over to the first carrier.
C)   if the sales contract does not involve carriage of the goods, the risk of loss passes to the buyer when the goods are tendered to him.
D)   All of the answers are correct.E) A) and C)
F) A) and B)

Question 18

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods, title passes at the time and place at which the seller completes performance.

Accepted Answer

A) True 
 B)False

Question 19

a. Arthur brings his new computer to the Quick Fix Repair Shop to be fixed. Two days later, a buyer comes into the shop, and Quick Fix inadvertently sells Arthur's computer. Arthur now wants his computer back. Can Arthur get his computer back? Explain. 
b. Why do you think the Code follows this rule in situations such as the one above? Explain.

Accepted Answer

a. Under the Code, Arthur has "entrusted...

Question 20

Article 6 of the Code does not:

Accepted Answer

A)   apply to sales of goods in the ordinary course of business.
B)   define "bulk transfer" as any transfer in bulk and not in the ordinary course of business.
C)   apply to merchants whose principal business is the sale of merchandise from stock.
D)   include the transfer of a substantial part of equipment as a bulk transfer under any circumstances.
E)   All of the answers are correct.F) D) and E)
G) A) and E)

Exam 21: Transfer of Title and Risk of Loss

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

Correct Answer
verified

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

Correct Answer
verified

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Correct Answer
verified

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

Correct Answer
verified

Under the CISG:

Correct Answer
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With regard to Article 6 of the Uniform Commercial Code, which of the following is accurate?

Correct Answer
verified

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

Correct Answer
verified

A void title may allow good title to pass in special circumstances.

Correct Answer
verified

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer?

Correct Answer
verified

Which of the following is necessary to be considered a good faith purchaser?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the first situation, the risk of loss...
View Answer

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

Correct Answer
verified

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods, title passes at the time and place at which the seller completes performance.

Correct Answer
verified

Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:

Correct Answer
verified

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

Correct Answer
verified

Correct Answer
verified
a. Under the Code, Arthur has "entrusted...
View Answer

a. What is a bulk transfer? b. What is the purpose of bulk sales law? c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

Correct Answer
verified
a. A bulk transfer is a merchant's trans...
View Answer

Article 6 of the Code does not:

Correct Answer
verified

Under a shipment contract, title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

Correct Answer
verified

Exam 21: Transfer of Title and Risk of Loss

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

Correct AnswerverifiedShow Answer

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

Correct AnswerverifiedShow Answer

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Correct AnswerverifiedShow Answer

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

Correct AnswerverifiedShow Answer

Under the CISG:

Correct AnswerverifiedShow Answer

With regard to Article 6 of the Uniform Commercial Code, which of the following is accurate?

Correct AnswerverifiedShow Answer

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

Correct AnswerverifiedShow Answer

A void title may allow good title to pass in special circumstances.

Correct AnswerverifiedShow Answer

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer?

Correct AnswerverifiedShow Answer

Which of the following is necessary to be considered a good faith purchaser?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn the first situation, the risk of loss...View AnswerShow Answer

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

Correct AnswerverifiedShow Answer

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods, title passes at the time and place at which the seller completes performance.

Correct AnswerverifiedShow Answer

Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:

Correct AnswerverifiedShow Answer

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Under the Code, Arthur has "entrusted...View AnswerShow Answer

a. What is a bulk transfer? b. What is the purpose of bulk sales law? c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

Correct Answerverifieda. A bulk transfer is a merchant's trans...View AnswerShow Answer

Article 6 of the Code does not:

Correct AnswerverifiedShow Answer

Under a shipment contract, title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

Correct AnswerverifiedShow 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In the first situation, the risk of loss...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Under the Code, Arthur has "entrusted...
View Answer

Correct Answer
verified
a. A bulk transfer is a merchant's trans...
View Answer

Correct Answer
verified

Correct Answer
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