Question 1

In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser does not acquire title to the goods.

Accepted Answer

A) True 
 B)False

Question 2

A consignment deal would be an example of a(n)  ________.

Accepted Answer

A)   unconditional contract
B)   sale or return contract
C)   sale or approval contract
D)   unequivocal contractE) None of the above
F) C) and D)

Question 3

In a sale or return contract, the risk of loss and title is with the seller even when the buyer takes possession of the goods.

Accepted Answer

A) True 
 B)False

Question 4

Robert steals a truckload of plasma televisions that belong to Karson Electronics Store. He then resells it to Stu-Mart, which is unaware of the stolen nature of the goods. Karson Electronics Store then traces the plasma televisions to Stu-Mart. Robert is also arrested for the theft. Which of the following is true for Karson's legal course for reclaiming the televisions or recovering damages?

Accepted Answer

A)   Stu-Mart is a good-faith purchaser here and as such does not have to hand over the televisions to Karson.
B)   Stu-mart must hand over the televisions to Karson as its title to the goods is void.
C)   Karson's only recourse is against Robert to claim damages.
D)   Karson's cannot reclaim the goods, but can sue Stu-Mart for negligence and damages.E) A) and B)
F) A) and C)

Question 5

Which of the following is true for the shipping term F.O.B. (free on board)  point of shipment?

Accepted Answer

A)   It requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.
B)   It refers to a pricing term that includes the cost of the goods and the costs of insurance and freight.
C)   It requires the seller to bear the expense and risk of loss of the goods until delivery has been tendered.
D)   The buyer bears the shipping expense and risk of loss while the goods are in transit.E) A) and D)
F) B) and C)

Question 6

In which of the following does the title to the goods pass from the seller to the buyer?

Accepted Answer

A)   option contract
B)   rental agreement
C)   lease
D)   sale of goodsE) All of the above
F) A) and B)

Question 7

Which of the following is true for the passage of title in a contract requiring a document of title?

Accepted Answer

A)   The title passes when the shipping arrangements are made.
B)   The title passes at the time and place of contracting.
C)   The title passes when the destination of delivery is first mentioned in the contract.
D)   The title passes when and where the seller delivers the document to the buyer.E) A) and C)
F) All of the above

Question 8

In an F.A.S. port of shipment, the buyer bears the shipping costs and the risk of loss during transport.

Accepted Answer

A) True 
 B)False

Question 9

How are the shipping terms C.I.F. and F.O.B. point of shipment similar to each other?

Accepted Answer

A)   Both require the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.
B)   Both require the seller to bear the expenses and risk of loss when handing the shipment to a carrier.
C)   Both require the seller to deliver and tender the goods alongside the named vessel provided by the buyer.
D)   Both require the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.E) B) and D)
F) B) and C)

Question 10

The delivery term "no-arrival, no-sale" can be added to a shipment contract.

Accepted Answer

A) True 
 B)False

Question 11

When is a buyer in breach of a sales contract?

Accepted Answer

A buyer breaches a sales contract if he ...

Question 12

Which of the following is a difference between a sale or return contract and a sale on approval contract?

Accepted Answer

A)   For sale or return, the risk of loss is borne by the buyer; while in a sale on approval, it is borne by the seller.
B)   For sale or return, the goods are sold to the buyer; while in a sale on approval, the buyer is allowed a time period to test the goods.
C)   For sale or return, failure to notify rejection is not acceptance; while in a sale on approval, failure to notify rejection is acceptance.
D)   For sale or return, goods sold can be returned; while in a sale on approval, goods sold can never be returned.E) A) and B)
F) A) and C)

Question 13

The term "Ex-ship" requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

Accepted Answer

A) True 
 B)False

Question 14

The term ________ refers to the legal, tangible evidence of ownership of goods.

Accepted Answer

A)   tenure
B)   title
C)   possession
D)   pledgeE) A) and D)
F) None of the above

Question 15

Explain in detail the risk of loss in lease contracts.

Accepted Answer

The parties to a lease contract are the ...

Question 16

The UCC allows the title of goods to be passed without its identification.

Accepted Answer

A) True 
 B)False

Question 17

What is a sale or return contract and who bears the risk of loss of goods in a sale or return contract?

Accepted Answer

In a sale or return contract, the seller...

Question 18

A holder of goods who is not a seller or a buyer is referred to as a(n)  ________.

Accepted Answer

A)   consignor
B)   broker
C)   bailee
D)   consigneeE) B) and C)
F) A) and D)

Question 19

Common law places the risk of loss of goods on the party who held title.

Accepted Answer

A) True 
 B)False

Question 20

In a no-arrival, no-sale contract, the seller is not required to deliver replacement goods to the buyer.

Accepted Answer

A) True 
 B)False

Exam 19: Title to Goods and Risk of Loss

When is a buyer in breach of a sales contract?

Correct Answer
verified
A buyer breaches a sales contract if he ...
View Answer

In a sale or return contract, the risk of loss and title is with the seller even when the buyer takes possession of the goods.

Correct Answer
verified

The term "Ex-ship" requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

Correct Answer
verified

In a no-arrival, no-sale contract, the seller is not required to deliver replacement goods to the buyer.

Correct Answer
verified

Which of the following is true for the passage of title in a contract requiring a document of title?

Correct Answer
verified

A consignment deal would be an example of a(n) ________.

Correct Answer
verified

A holder of goods who is not a seller or a buyer is referred to as a(n) ________.

Correct Answer
verified

What is a sale or return contract and who bears the risk of loss of goods in a sale or return contract?

Correct Answer
verified
In a sale or return contract, the seller...
View Answer

In an F.A.S. port of shipment, the buyer bears the shipping costs and the risk of loss during transport.

Correct Answer
verified

The delivery term "no-arrival, no-sale" can be added to a shipment contract.

Correct Answer
verified

Which of the following is true for the shipping term F.O.B. (free on board) point of shipment?

Correct Answer
verified

How are the shipping terms C.I.F. and F.O.B. point of shipment similar to each other?

Correct Answer
verified

Common law places the risk of loss of goods on the party who held title.

Correct Answer
verified

In which of the following does the title to the goods pass from the seller to the buyer?

Correct Answer
verified

Explain in detail the risk of loss in lease contracts.

Correct Answer
verified
The parties to a lease contract are the ...
View Answer

The UCC allows the title of goods to be passed without its identification.

Correct Answer
verified

In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser does not acquire title to the goods.

Correct Answer
verified

The term ________ refers to the legal, tangible evidence of ownership of goods.

Correct Answer
verified

Which of the following is a difference between a sale or return contract and a sale on approval contract?

Correct Answer
verified

Correct Answer
verified

Exam 19: Title to Goods and Risk of Loss

When is a buyer in breach of a sales contract?

Correct AnswerverifiedA buyer breaches a sales contract if he ...View AnswerShow Answer

In a sale or return contract, the risk of loss and title is with the seller even when the buyer takes possession of the goods.

Correct AnswerverifiedShow Answer

The term "Ex-ship" requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

Correct AnswerverifiedShow Answer

In a no-arrival, no-sale contract, the seller is not required to deliver replacement goods to the buyer.

Correct AnswerverifiedShow Answer

Which of the following is true for the passage of title in a contract requiring a document of title?

Correct AnswerverifiedShow Answer

A consignment deal would be an example of a(n) ________.

Correct AnswerverifiedShow Answer

A holder of goods who is not a seller or a buyer is referred to as a(n) ________.

Correct AnswerverifiedShow Answer

What is a sale or return contract and who bears the risk of loss of goods in a sale or return contract?

Correct AnswerverifiedIn a sale or return contract, the seller...View AnswerShow Answer

In an F.A.S. port of shipment, the buyer bears the shipping costs and the risk of loss during transport.

Correct AnswerverifiedShow Answer

The delivery term "no-arrival, no-sale" can be added to a shipment contract.

Correct AnswerverifiedShow Answer

Which of the following is true for the shipping term F.O.B. (free on board) point of shipment?

Correct AnswerverifiedShow Answer

How are the shipping terms C.I.F. and F.O.B. point of shipment similar to each other?

Correct AnswerverifiedShow Answer

Common law places the risk of loss of goods on the party who held title.

Correct AnswerverifiedShow Answer

In which of the following does the title to the goods pass from the seller to the buyer?

Correct AnswerverifiedShow Answer

Explain in detail the risk of loss in lease contracts.

Correct AnswerverifiedThe parties to a lease contract are the ...View AnswerShow Answer

The UCC allows the title of goods to be passed without its identification.

Correct AnswerverifiedShow Answer

In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser does not acquire title to the goods.

Correct AnswerverifiedShow Answer

The term ________ refers to the legal, tangible evidence of ownership of goods.

Correct AnswerverifiedShow Answer

Which of the following is a difference between a sale or return contract and a sale on approval contract?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
A buyer breaches a sales contract if he ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a sale or return contract, the seller...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The parties to a lease contract are the ...
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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