Question 1

A(n) ________ involves the seller entrusting possession of goods to a buyer on a trial basis.

Accepted Answer

A)  destination contract
B)  option contract
C)  unequivocal transaction
D)  conditional saleE) All of the above
F) C) and D)

Question 2

The ________ bears the risk of loss during transportation in a destination contract.

Accepted Answer

A)  buyer
B)  seller
C)  carrier
D)  shipperE) All of the above
F) C) and D)

Question 3

When is a buyer in breach of a sales contract?

Accepted Answer

A buyer breaches a sales contract if he ...

Question 4

What is the role of a financing statement in a consignment if the consignor files it?

Accepted Answer

A)  It protects the consignor from bearing a risk of loss for the goods.
B)  It protects the consignor from possible payment revocation by the consignee.
C)  It gives the buyer's creditors claim over the goods.
D)  It gives the seller's creditors claim over the goods.E) All of the above
F) A) and B)

Question 5

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 6

Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knells' until it is repaired.The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch.
-Who can legally claim ownership over the watch in court?

Accepted Answer

A)  Jonathan
B)  Steve
C)  Knell Watches
D)  KevinE) A) and D)
F) C) and D)

Question 7

Article 2 of the UCC adopts rules for risk of loss that are closely tied to title.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a good faith purchaser?

Accepted Answer

A)  a person who buys goods from a person with a voidable title
B)  a person who buys stolen goods without being aware of it
C)  a buyer who agrees to hold goods for a person till the delivery of the goods is made
D)  a buyer to whom goods are delivered by a seller to sell on the seller's behalfE) None of the above
F) C) and D)

Question 9

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 10

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 11

A document of title requires the seller to deliver the goods at the buyer's destination.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The bailee acquires the title to the goods when the goods are in his or her possession.

Accepted Answer

A) True 
 B)False

Question 14

A title for goods obtained by a seller through fraud, impersonation, or a dishonored check is referred to as a ________.

Accepted Answer

A)  unenforceable title
B)  voidable title
C)  conditional title
D)  unequivocal titleE) B) and C)
F) A) and D)

Question 15

An undeveloped real estate property is an example of future goods.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

Accepted Answer

A)  The seller is required to bear the expense and risk during transportation.
B)  The seller is required to replace any goods lost in transit.
C)  The buyer does not have to pay for destroyed goods.
D)  The risk of loss passes once the shipping has been arranged.E) A) and B)
F) A) and C)

Question 17

In a sale on approval, the risk of loss and title to the goods remain with seller till the buyer's acceptance.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would contain the term "no-arrival, no-sale" in their contract?

Accepted Answer

A)  shipment contract
B)  destination contract
C)  a contract to sell real estate
D)  consignment contractE) All of the above
F) A) and D)

Question 19

Which of the following is an example of delivery of goods without moving them?

Accepted Answer

A)  a contract requiring a document of title
B)  a shipment contract
C)  a destination contract
D)  a contract with the term ex-shipE) A) and D)
F) A) and C)

Question 20

An entrusted merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Exam 19: Title to Goods and Risk of Loss

Which of the following is an example of delivery of goods without moving them?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

Correct Answer
verified

A document of title requires the seller to deliver the goods at the buyer's destination.

Correct Answer
verified

What is the role of a financing statement in a consignment if the consignor files it?

Correct Answer
verified

A(n) ________ involves the seller entrusting possession of goods to a buyer on a trial basis.

Correct Answer
verified

Article 2 of the UCC adopts rules for risk of loss that are closely tied to title.

Correct Answer
verified

An undeveloped real estate property is an example of future goods.

Correct Answer
verified

In a sale on approval, the risk of loss and title to the goods remain with seller till the buyer's acceptance.

Correct Answer
verified

The bailee acquires the title to the goods when the goods are in his or her possession.

Correct Answer
verified

Correct Answer
verified

Which of the following would contain the term "no-arrival, no-sale" in their contract?

Correct Answer
verified

Which of the following is a good faith purchaser?

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

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

A title for goods obtained by a seller through fraud, impersonation, or a dishonored check is referred to as a ________.

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

An entrusted merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business.

Correct Answer
verified

The ________ bears the risk of loss during transportation in a destination contract.

Correct Answer
verified

Exam 19: Title to Goods and Risk of Loss

Which of the following is an example of delivery of goods without moving them?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

Correct AnswerverifiedShow Answer

A document of title requires the seller to deliver the goods at the buyer's destination.

Correct AnswerverifiedShow Answer

What is the role of a financing statement in a consignment if the consignor files it?

Correct AnswerverifiedShow Answer

A(n) ________ involves the seller entrusting possession of goods to a buyer on a trial basis.

Correct AnswerverifiedShow Answer

Article 2 of the UCC adopts rules for risk of loss that are closely tied to title.

Correct AnswerverifiedShow Answer

An undeveloped real estate property is an example of future goods.

Correct AnswerverifiedShow Answer

In a sale on approval, the risk of loss and title to the goods remain with seller till the buyer's acceptance.

Correct AnswerverifiedShow Answer

The bailee acquires the title to the goods when the goods are in his or her possession.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would contain the term "no-arrival, no-sale" in their contract?

Correct AnswerverifiedShow Answer

Which of the following is a good faith purchaser?

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

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

A title for goods obtained by a seller through fraud, impersonation, or a dishonored check is referred to as a ________.

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

An entrusted merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business.

Correct AnswerverifiedShow Answer

The ________ bears the risk of loss during transportation in a destination contract.

Correct AnswerverifiedShow Answer

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A buyer breaches a sales contract if he ...
View 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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