Question 1

Which of the following is the right to insure goods against any risk exposure such as damage or destruction?

Accepted Answer

A)   An insurable interest
B)   A compensable interest
C)   A paid interest
D)   A collateral interest
E)   A valid interestF) A) and E)
G) C) and E)

Question 2

FOB and FAS are different terms with the same meaning.

Accepted Answer

A) True 
 B)False

Question 3

The UCC defines a[n] _____ as the passing of title from the seller to the buyer for a price.

Accepted Answer

A)   Sale
B)   Consignment
C)   Lease
D)   Title swap
E)   OwnershipF) C) and D)
G) B) and E)

Question 4

Assuming the car was stolen without any knowledge of ABC Motors,which of the following is true regarding the manager's statement that Marcy has a good title?

Accepted Answer

A)   The manager is correct.
B)   The manager is correct only if Marcy can establish true consumer status meaning that she had not bought or sold over three cars in the previous six months.
C)   The manager is correct only if Marcy can establish true consumer status meaning that she had not bought or sold over three cars in the previous year.
D)   The manager is incorrect because Marcy has voidable title.
E)   The manager is incorrect because Marcy has void title.F) None of the above
G) A) and E)

Question 5

Which of the following is title that is acquired from someone who already owns the goods free and clear?

Accepted Answer

A)   True title
B)   Voidable title
C)   Good title
D)   Examined title
E)   Substantiated titleF) All of the above
G) B) and C)

Question 6

In a destination contract who bears the risk of loss while the goods are in transit?

Accepted Answer

A)   The seller
B)   The buyer
C)   The loss is proportioned 50% to the buyer and 50% to the seller
D)   The loss is proportioned 75% to the buyer and 25% to the seller
E)   The loss is proportioned 25% to the buyer and 75% to the sellerF) B) and C)
G) A) and B)

Question 7

What type of contract is presumed based upon the fact that the contract was ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home?

Accepted Answer

A)   Transit
B)   Location
C)   Destination
D)   Origin
E)   VoidableF) None of the above
G) D) and E)

Question 8

Good faith is generally relevant in determining whether someone with a void title can pass a good title.

Accepted Answer

A) True 
 B)False

Question 9

The rule originates in common law that when a seller transfers goods to a buyer,the buyer gets only voidable title if the buyer is a minor.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a proper identifying term for Connie?

Accepted Answer

A)   A good-faith purchaser
B)   A valid purchaser
C)   A void purchaser
D)   A voidable purchaser
E)   An interested purchaser for valueF) D) and E)
G) A) and B)

Question 11

In an origin contract,when does title pass to the buyer?

Accepted Answer

A)   When money is transferred to the seller
B)   When the items are delivered to the buyer
C)   At the time and place of shipment
D)   One day after goods are identified to the contract
E)   When goods are identified to the contractF) A) and C)
G) C) and D)

Question 12

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

Accepted Answer

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

Question 13

Set forth the five situations under which a buyer gets only voidable title in a sale.

Accepted Answer

A buyer gets only voidable title if (1)t...

Question 14

Belinda purchases a couch from Good Furniture Store to use in her home.She pays for the couch,and the store agrees to deliver it.Unfortunately,on the way to her house,the vehicle overheats and burns,destroying the truck and the couch inside.Belinda asks for a refund or another couch.The store owner refuses on the basis that risk of loss had passed to Belinda.What would be the result of a lawsuit between Belinda and Good Furniture Store under the UCC?

Accepted Answer

Under the UCC,since the store ...

Question 15

Which of the following would the absence of words "to the order of" indicate in a goods-in-bailment contract?

Accepted Answer

A)   A negotiable document
B)   A nonnegotiable document
C)   A shipment contract
D)   An origin contract
E)   Nothing, there is no such thing as a goods-in-bailment contractF) A) and E)
G) All of the above

Question 16

With a simple delivery contract,when does title transfer to the buyer?

Accepted Answer

A)   When money is transferred
B)   When the items are delivered
C)   When the buyer takes possession
D)   One day after goods are identified to the contract
E)   When goods are identified to the contractF) A) and B)
G) None of the above

Question 17

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

Question 18

Which of the following occurs when purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller's delivery,and the seller has an agent deliver the goods to the buyer?

Accepted Answer

A)   A voidable delivery contract
B)   An average delivery contract
C)   A simple delivery contract
D)   A complex delivery contract
E)   An acknowledged saleF) D) and E)
G) None of the above

Question 19

Which of the following occurs when the sale itself is contingent on approval?

Accepted Answer

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

Question 20

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is not a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

Accepted Answer

A)   The seller
B)   The buyer
C)   Loss is proportioned 50% to the buyer and 50% to the seller
D)   Loss is proportioned 75% to the buyer and 25% to the seller
E)   Loss is proportioned 25% to the buyer and 75% to the sellerF) B) and E)
G) A) and D)

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

Correct Answer
verified

Set forth the five situations under which a buyer gets only voidable title in a sale.

Correct Answer
verified
A buyer gets only voidable title if (1)t...
View Answer

Which of the following occurs when the sale itself is contingent on approval?

Correct Answer
verified

The rule originates in common law that when a seller transfers goods to a buyer,the buyer gets only voidable title if the buyer is a minor.

Correct Answer
verified

Which of the following is a proper identifying term for Connie?

Correct Answer
verified

Which of the following occurs when purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller's delivery,and the seller has an agent deliver the goods to the buyer?

Correct Answer
verified

Correct Answer
verified
Under the UCC,since the store ...
View Answer

What type of contract is presumed based upon the fact that the contract was ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home?

Correct Answer
verified

Which of the following 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

In an origin contract,when does title pass to the buyer?

Correct Answer
verified

Which of the following is the right to insure goods against any risk exposure such as damage or destruction?

Correct Answer
verified

Which of the following would the absence of words "to the order of" indicate in a goods-in-bailment contract?

Correct Answer
verified

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

Correct Answer
verified

Good faith is generally relevant in determining whether someone with a void title can pass a good title.

Correct Answer
verified

In a destination contract who bears the risk of loss while the goods are in transit?

Correct Answer
verified

Assuming the car was stolen without any knowledge of ABC Motors,which of the following is true regarding the manager's statement that Marcy has a good title?

Correct Answer
verified

The UCC defines a[n] _____ as the passing of title from the seller to the buyer for a price.

Correct Answer
verified

FOB and FAS are different terms with the same meaning.

Correct Answer
verified

With a simple delivery contract,when does title transfer to the buyer?

Correct Answer
verified

Which of the following is title that is acquired from someone who already owns the goods free and clear?

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

Set forth the five situations under which a buyer gets only voidable title in a sale.

Correct AnswerverifiedA buyer gets only voidable title if (1)t...View AnswerShow Answer

Which of the following occurs when the sale itself is contingent on approval?

Correct AnswerverifiedShow Answer

The rule originates in common law that when a seller transfers goods to a buyer,the buyer gets only voidable title if the buyer is a minor.

Correct AnswerverifiedShow Answer

Which of the following is a proper identifying term for Connie?

Correct AnswerverifiedShow Answer

Which of the following occurs when purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller's delivery,and the seller has an agent deliver the goods to the buyer?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUnder the UCC,since the store ...View AnswerShow Answer

What type of contract is presumed based upon the fact that the contract was ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home?

Correct AnswerverifiedShow Answer

Which of the following 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

In an origin contract,when does title pass to the buyer?

Correct AnswerverifiedShow Answer

Which of the following is the right to insure goods against any risk exposure such as damage or destruction?

Correct AnswerverifiedShow Answer

Which of the following would the absence of words "to the order of" indicate in a goods-in-bailment contract?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Good faith is generally relevant in determining whether someone with a void title can pass a good title.

Correct AnswerverifiedShow Answer

In a destination contract who bears the risk of loss while the goods are in transit?

Correct AnswerverifiedShow Answer

Assuming the car was stolen without any knowledge of ABC Motors,which of the following is true regarding the manager's statement that Marcy has a good title?

Correct AnswerverifiedShow Answer

The UCC defines a[n] _____ as the passing of title from the seller to the buyer for a price.

Correct AnswerverifiedShow Answer

FOB and FAS are different terms with the same meaning.

Correct AnswerverifiedShow Answer

With a simple delivery contract,when does title transfer to the buyer?

Correct AnswerverifiedShow Answer

Which of the following is title that is acquired from someone who already owns the goods free and clear?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A buyer gets only voidable title if (1)t...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
Under the UCC,since the store ...
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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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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