Question 1

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

Accepted Answer

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

Question 2

With regard to the damaged suits,who bears the risk of loss?

Accepted Answer

A)  Kool Klothes,because Cleo is sending the goods back to the seller and had not purchased them
B)  Cleo,because she is the buyer in a sale-or-return contract and only if there is no agreement to the contrary
C)  Kool Klothes,because under a sale-or-return contract,title to the suits never passed to Cleo
D)  Cleo,because the dresses are goods in bailment
E)  Cleo,because under a sale-or-return contract,she can return the dresses.F) A) and D)
G) A) and E)

Question 3

If the seller does not provide the goods described in the contract,one option the seller has is to accept the nonconforming goods as is.

Accepted Answer

A) True 
 B)False

Question 4

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 5

What does the term CIF when used as a shipping term represent?

Accepted Answer

A)  Cost,insurance,and freight
B)  Cost,indemnity,and freight
C)  Commerce,insurance,and freight
D)  Collateral,insurance,and freight
E)  Cost,insurance,and flightF) None of the above
G) C) and E)

Question 6

Title is the legal ownership of a good,but it does not require possession.

Accepted Answer

A) True 
 B)False

Question 7

Jonas sold his motorcycle to his co-worker's brother,Byron,who gave Jonas a check and took the motorcycle home.When Jonas goes to cash Byron's check he discovers the check is denied for insufficient funds.What recourse does Jonas have?

Accepted Answer

A)  Jonas has the right to cancel the contract and reclaim his motorcycle because Byron's title is voidable.
B)  Jonas can do nothing
C)  Jonas has the right to demand the payment due him under the contract.However,title passed to Byron because Jonas was not aware of the bad check at the time of delivery.
D)  If Byron re-sells the motorcycle to a third party,then Byron can reclaim the motorcycle from the third-party.
E)  Jonas has the right to reclaim his motorcycle because Byron's title is void.F) None of the above
G) C) and E)

Question 8

With a simple delivery contract,when is an insurable interest in the buyer created?

Accepted Answer

A)  When the goods are identified to the contract
B)  When goods are identified to the buyer
C)  When money is transferred
D)  When the items are delivered
E)  When the buyer takes possessionF) B) and D)
G) All of the above

Question 9

Which statement about the risk of loss at the time the goods were damaged is correct?

Accepted Answer

A)  The risk of loss was split 50-50 between Ivan and Smith-Napa.
B)  The risk of loss was with Ivan only if the driver is determined to be an agent of Smith-Napa.
C)  The risk of loss was with Ivan.
D)  The risk of loss was with Smith-Napa only if the driver is determined to be an agent of Smith-Napa.
E)  The risk of loss was with Smith-Napa.F) A) and C)
G) A) and E)

Question 10

A title acquired from someone who already owns the goods free and clear is known as a ________.

Accepted Answer

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

Question 11

What is the term used for the goods while they are in storage on board the ship?

Accepted Answer

A)  Goods on board
B)  Free on board
C)  Goods in storage
D)  Free on bailment
E)  Goods in bailmentF) D) and E)
G) A) and D)

Question 12

With goods in bailment,when is an insurable interest created?

Accepted Answer

A)  When either party has title,risk of loss,or other economic interest attached to the goods
B)  Two days after either party has title to the goods
C)  When either party has title or a risk of loss,but not under any other circumstances
D)  Only when either party has title to the goods
E)  Never.There is no such thing as an insurable interest in a goods-in-bailment contractF) A) and D)
G) A) and B)

Question 13

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

Accepted Answer

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

Question 14

Renée goes to Great Deal and buys a plasma TV.She pays for it,and the store agrees to deliver it.Unfortunately,on the way to her house,the vehicle overheats and burns,destroying the truck and the TV inside.Renée asks for a refund or another TV.The store owner refuses on the basis that risk of loss had passed to Renée.What would be the result of a lawsuit between Renée and Great Deal under the UCC?

Accepted Answer

Under the UCC,since the store ...

Question 15

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

Accepted Answer

A)  Freedom Alongside
B)  Fee as Selected
C)  Found as Selected
D)  Found as Seen
E)  Free AlongsideF) B) and C)
G) A) and C)

Question 16

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

Accepted Answer

A)  Lease
B)  Ownership
C)  Sale
D)  Consignment
E)  Title swapF) A) and C)
G) None of the above

Question 17

Which statement is true regarding the manager's assertion that Jamila has a good title,assuming the car was in fact stolen?

Accepted Answer

A)  The manager is incorrect because Jamila has voidable title.
B)  The manager is correct only if Jamila can establish true consumer status meaning that she had not bought or sold over three cars in the previous year.
C)  The manager is correct only if Jamila can establish true consumer status meaning that she had not bought or sold over three cars in the previous six months.
D)  The manager is correct.
E)  The manager is incorrect because Jamila has void title.F) A) and E)
G) D) and E)

Question 18

If the contract between the parties had been an origin contract,who would bear the risk of loss for the second delivery?

Accepted Answer

A)  ScubaCo,because the risk of loss remains with the seller
B)  The Dive Shop but only to the extent of its insurance,the remainder transfers to ScubaCo
C)  The Dive Shop,because the risk of loss transferred to the buyer on delivery,but only the remainder of the loss not covered by ScubaCo's insurance
D)  Both parties share the risk of loss equally
E)  ScubaCo,because they had no right to refuse delivery of conforming goodsF) All of the above
G) C) and E)

Question 19

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  Void
B)  Illegal
C)  Absolute
D)  Good
E)  VoidableF) None of the above
G) B) and D)

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

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

What does the term CIF when used as a shipping term represent?

Correct Answer
verified

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

Correct Answer
verified

Which statement about the risk of loss at the time the goods were damaged is correct?

Correct Answer
verified

With goods in bailment,when is an insurable interest created?

Correct Answer
verified

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

Correct Answer
verified

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Correct Answer
verified

With a simple delivery contract,when is an insurable interest in the buyer created?

Correct Answer
verified

If the seller does not provide the goods described in the contract,one option the seller has is to accept the nonconforming goods as is.

Correct Answer
verified

What is the term used for the goods while they are in storage on board the ship?

Correct Answer
verified

Which statement is true regarding the manager's assertion that Jamila has a good title,assuming the car was in fact stolen?

Correct Answer
verified

Jonas sold his motorcycle to his co-worker's brother,Byron,who gave Jonas a check and took the motorcycle home.When Jonas goes to cash Byron's check he discovers the check is denied for insufficient funds.What recourse does Jonas have?

Correct Answer
verified

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

Correct Answer
verified

With regard to the damaged suits,who bears the risk of loss?

Correct Answer
verified

Title is the legal ownership of a good,but it does not require possession.

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

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

Correct Answer
verified

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

A title acquired from someone who already owns the goods free and clear is known as a ________.

Correct Answer
verified

If the contract between the parties had been an origin contract,who would bear the risk of loss for the second delivery?

Correct Answer
verified

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

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

What does the term CIF when used as a shipping term represent?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which statement about the risk of loss at the time the goods were damaged is correct?

Correct AnswerverifiedShow Answer

With goods in bailment,when is an insurable interest created?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Correct AnswerverifiedShow Answer

With a simple delivery contract,when is an insurable interest in the buyer created?

Correct AnswerverifiedShow Answer

If the seller does not provide the goods described in the contract,one option the seller has is to accept the nonconforming goods as is.

Correct AnswerverifiedShow Answer

What is the term used for the goods while they are in storage on board the ship?

Correct AnswerverifiedShow Answer

Which statement is true regarding the manager's assertion that Jamila has a good title,assuming the car was in fact stolen?

Correct AnswerverifiedShow Answer

Jonas sold his motorcycle to his co-worker's brother,Byron,who gave Jonas a check and took the motorcycle home.When Jonas goes to cash Byron's check he discovers the check is denied for insufficient funds.What recourse does Jonas have?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

With regard to the damaged suits,who bears the risk of loss?

Correct AnswerverifiedShow Answer

Title is the legal ownership of a good,but it does not require possession.

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

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

Correct AnswerverifiedShow Answer

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

A title acquired from someone who already owns the goods free and clear is known as a ________.

Correct AnswerverifiedShow Answer

If the contract between the parties had been an origin contract,who would bear the risk of loss for the second delivery?

Correct AnswerverifiedShow Answer

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

Correct Answer
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Correct Answer
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