Q&A Hero

Q: If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer, which of the following is true regarding the statue of the common carrier? A. The common carrier is the agent of the seller. B. The common carrier is the agent of the buyer. C. The common carrier is the agent of both the seller and the buyer. D. The common carrier is a fiduciary. E. The common carrier is an independent contractor.

Q: When is an insurable interest in the buyer created in a simple delivery contract? A. When money is transferred B. When the items are delivered C. When the buyer takes possession D. When the goods are identified to the contract E. When the goods are tendered for delivery

Q: What type of agreement do the parties have when the sale itself is contingent on approval? A. A transferable contract B. An unapproved contract C. An average delivery contract D. A conditional sales contract E. A goods-in-transfer contract

Q: When does title transfer to the buyer with a simple delivery contract? 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 contract

Q: With a simple delivery contract involving goods sold by a merchant that are to be delivered, when does risk of loss transfer to the buyer? A. When money is transferred B. When the items are tendered C. When goods are delivered to the buyer D. One day after goods are identified to the contract E. When goods are identified to the contract

Q: Which of the following occurs when the 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? A. A voidable delivery contract B. An average delivery contract C. A simple delivery contract D. A complex delivery contract E. An acknowledged sale

Q: What type of agreement do the parties have when the goods are delivered to a buyer via a common carrier, such as a trucking line? A. A simple delivery contract B. A common-carrier delivery contract C. A goods-in-bailment contract D. An average delivery contract E. A delivery-carrier contract

Q: What type of agreement do the parties have when the purchased goods are in some kind of storage under the control of a third party, such as a warehouseman? A. A goods-in-bailment contract B. A simple delivery contract C. An average delivery contract D. A conditional sales contract E. A goods-in-transfer contract

Q: Which of the following is not a true title? A. Void title B. Voidable title C. Good title D. Examined title E. Substantiated title

Q: If a contract between the original parties would be void but the goods have already been sold to a third party, it would be considered _____ title. A. releasable B. voidable C. good D. substantiated E. excised

Q: Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind? A. The merchant can transfer all rights in the goods to a buyer in the ordinary course of business. B. The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner. C. The merchant can only transfer void title until the owner approves the sale. D. The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner. E. The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

Q: What type of interest occurs when there is a right to insure goods against any risk exposure such as damage or destruction? A. An insurable interest B. A compensable interest C. A paid interest D. A collateral interest E. A valid interest

Q: Under the UCC, if a contract or a contract provision is so unfair that a court would be unreasonable if it enforced the agreement, the contract is deemed _____. A. unconscionable B. unreasonable C. voidable D. viable E. ancillary

Q: What actions does the UCC provide that a court can take if it discovers that a contract or lease provision is unconscionable? A. The court must refer the matter to mediation. B. The court must refer the matter to arbitration. C. The court can only refuse to enforce the parts of the contract or lease that are unfair. D. The court either can refuse to enforce the contract or lease, or can enforce the parts of the contract or lease that are fair. E. The court has no power to enforce the lease and must award the innocent party punitive damages.

Q: Which of the following is treaty that provides a legal structure for international sales? A. The International Convention of Contracts for International Sales B. The Federation Convention on the Uniform Commercial Code C. The Worldwide Federation Convention on the Sale of Goods D. The United Nations Convention on Contracts for the International Sale of Goods E. The International Agreement on the Sale of Goods

Q: Under the UCC, contracts for the sale of goods must be in writing in order to be enforceable if they are valued at _____ or more. A. $100 B. $500 C. $1,000 D. $1,500 E. $5,000

Q: Under the UCC, lease contracts that require payments of _____ or more must be in writing in order to be enforceable. A. $100 B. $500 C. $1,000 D. $1,500 E. $5,000

Q: Which of the following is true regarding the mirror-image rule and the UCC? A. The mirror-image rule applies under the UCC the same as it is applies under common law. B. The mirror-image rule that applies under common law does not apply under the UCC. C. The mirror-image rule that applies under the common law applies under the UCC only if a lease is involved. D. The mirror-image rule that applies under the common law applies under the UCC only if a sale of goods is involved. E. The mirror-image rule under the UCC does not apply to common law.

Q: The United Nations Convention on Contracts for the International Sale of Goods governs _____. A. business to consumer sales contracts B. business to business sales contracts C. mixed sale contracts D. leases E. all transactions involving the mirror-image rule

Q: A firm offer must be _____. A. oral and indefinitely revocable B. oral and irrevocable for up to one year C. in writing and indefinitely revocable D. in writing and irrevocable for up to three months E. in writing and irrevocable for up to one year

Q: Under the UCC, how may an acceptance be made? A. Only be writing. B. Only orally or by a writing. C. Only by electronic communication or by writing. D. Only by facsimile or by mail. E. By any reasonable means of communication.

Q: Under the UCC, when is an acceptance effective? A. When dispatched B. When received C. When received only if acceptance by electronic means is made, otherwise on dispatch D. When dispatched only if the U.S. mail is used, otherwise on receipt E. When dispatched only when the telephone is used, otherwise on receipt

Q: Under Article 2(A) of the UCC "a transfer of the right to possession and use of goods for a term in return for consideration" is a _____. A. sale of goods B. lease C. transfer D. rental E. consignment

Q: Under Article 2(A) of the UCC, a person who transfers the right to possession and use of goods under a lease is a(n) _____. A. relater B. seller C. lessee D. lessor E. acquirer

Q: Under Article 2(A) of the UCC, a person who acquires the right to possession and use of goods under a lease is a(n) _____. A. buyer B. seller C. lessee D. lessor E. acquirer

Q: A contract that combines a good with a service is a _____ sale. A. combined B. mixed C. service D. goods E. total

Q: Which is not covered under Article 2(A) of the UCC? A. Real property B. Cars C. Equipment D. Machines E. None of these as they are all covered

Q: What did the court rule on appeal in Alfonso Candela v. Port Motors Inc., the case in the text in which the plaintiff sued the defendant for breach of warranty of title claiming that he was sold a stolen car? A. That the defendant passed good title as long as the defendant did not know that the car was stolen. B. That the defendant passed voidable title as long as the defendant did not know that the car was stolen. C. That a defendant selling stolen goods, regardless of good faith, can never pass a voidable or good title to the buyer. D. That a defendant selling stolen goods can pass good title to a buyer so long as the buyer and seller were innocent and not in collusion. E. That a defendant selling stolen goods does not pass good title but that the risk of loss is on the buyer.

Q: Under the UCC, items are _____ if they exist physically. A. merchandise B. real C. tangible D. movable E. saleable

Q: Which of the following do not meet the UCC definition of a good? A. Real estate B. Corporate stocks C. Copyrights

Q: Which of the following are considered goods under the UCC? A. Minerals taken from real estate and sold by the owner. B. Soil taken from real estate and sold by the owner. C. The right, sold by the owner to another party, to remove soil from real estate. D. Minerals taken from real estate and sold by the owner; soil taken from real estate and sold by the owner; and the right, sold by the owner to another party, to remove soil from real estate. E. Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner; but not the right, sold by the owner to another party, to remove soil from the real estate.

Q: Under Article 2 of the UCC, which of the following consists of the passing of title from the seller to the buyer for a price? A. A lease B. A transaction C. A transfer of use D. A sale E. A negotiated transfer

Q: Under Article 2 of the UCC which of the following is defined as tangible things which are movable at the time of identification to the contract for sale? A. Articles B. Merchandise C. Goods D. Attachments E. Saleable things

Q: If Article 2 of the UCC is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, what law applies? A. State statutory law or common law. B. Federal statutory law and the CISG. C. The U. S. Constitution. D. The CISG only. E. Federal statutory law only.

Q: The UCC is divided into sections known as _____. A. divisions B. articles C. subsections D. clauses E. amendments

Q: Which of the following articles of the UCC governs sales contracts? A. 2 B. 2(A) C. 4 D. 4(A) E. 6

Q: Which of the following articles of the UCC governs lease contracts? A. 2 B. 2(A) C. 4 D. 4(A) E. 6

Q: For Free On Board (FOB) and Free Alongside (FAS) the seller carries the risk of loss to the place of destination.

Q: Which laws used to interpret sales contracts? A. State common law B. The Uniform Commercial Code C. State statutory law D. State common law, the Uniform Commercial Code, and state statutory law E. State common law and the Uniform Commercial Code, but not state statutory law

Q: All states, except Louisiana, follow the _____ common law. A. English B. French C. Italian D. Spanish E. Welsh

Q: The UCC was created in _____. A. 1980 B. 1964 C. 1952 D. 1943 E. 1935

Q: An insurable interest is the right to insure the goods against any risk exposure such as damage or destruction.

Q: Tender of delivery is the moment goods are picked up by the buyer.

Q: A common-carrier delivery contract occurs if a buyer and seller execute a contract and the seller subsequently places the goods with an independent contractor for delivery to the buyer.

Q: If a shipment contract is vague or ambiguous on the issue, an origin contract will be presumed.

Q: If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Q: Identification of when the risk of loss attaches is important in regards to the right of indemnification for damaged goods.

Q: Good faith is generally relevant in determining whether someone has a valid title.

Q: According to common law, when a seller transfers goods to a buyer, the buyer gets only voidable title if the buyer is a minor.

Q: Someone who unknowingly purchases stolen goods has good title.

Q: What constitutes a valid writing in the UCC is the same in the statute of frauds.

Q: The UCC does not recognize the concept of unconscionability.

Q: The United Nations Convention on Contracts for the International Sale of Goods was offered as a treaty that countries could sign, indicating their willingness to allow the treaty to govern international business-to-business sales contracts.

Q: Good title is title that is acquired from someone who already owns the goods free and clear.

Q: The UCC requires that consideration be provided for the modification of a contract.

Q: Under the mirror-image rule, the terms of an acceptance must be the exact same terms as the offer.

Q: The mirror-image rule has been adopted by the UCC.

Q: The National Conference of Commissioners on Uniform State Laws adopted the Uniform Internet Act to answer questions pertaining to electronic transactions such as airline tickets purchased online.

Q: Contracts for the sale or lease of goods may be formed even if some terms of the contract or lease are left open.

Q: A firm offer may be oral or written.

Q: Items taken from real estate, such as minerals, clay, and soil may be treated as goods under UCC sales contracts.

Q: Under the UCC, all merchants are buyers and sellers.

Q: Article 2(A) includes leases for real property.

Q: Contract law is based upon federal statutes.

Q: Article 2 of the UCC governs sales contracts while Article 3 governs lease contracts.

Q: The passing of title from a seller to a buyer for a price is known as a sale under UCC law.

Q: The UCC pertains to all business transactions.

Q: Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause into the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The responsibility of Maurice to make arrangements to give the window installer access to the home is referred to as which of the following? A. A condition subsequent B. A condition precedent C. An implied condition D. An express condition E. Both a condition precedent and an express condition

Q: The UCC is a statutory source of contract law that is applicable to transactions involving the sale of goods.

Q: If the plaintiff wants a court order that requires the defendant to fulfill the terms of the contract, the plaintiff is seeking _______________________. A. specific performance B. directive C. instructional edict D. demand E. injunction

Q: Which of the following was the result in Thrifty Rent-A-Car System v. South Florida Transport, the case in the text in which in response to a claim for amounts due on a franchise agreement involving the rental of vehicles, the defendant claimed that hurricanes had rendered its rental car business commercially impracticable? A. That a jury question existed as to whether the hurricanes made the business commercially impracticable. B. That as a matter of law, the defense of commercial impracticability was unavailable to the defendant for reasons including that the absence of hurricanes was not a basic assumption of the agreement. C. That as a matter of law, the defense of commercial impracticability was available to the defendant because the defendant established that it was current on its payments until the advent of the hurricane season. D. That as a matter of law, the defense of commercial impracticability was available to the defendant because the defendant established that the hurricanes made the cost of performance of the terms of the agreement unduly burdensome. E. That as a matter of law, the defense of commercial impracticability was available to the defendant because the plaintiff failed to establish that the defendant had been given sufficient opportunity to recover from its business interruption due to several hurricanes.

Q: Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause into the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The provision that Maurice did not have to buy the house unless he was able to get a loan is referred to as which of the following? A. A condition subsequent B. A condition precedent C. An implied condition D. An express condition E. Both a condition precedent and an express condition

Q: Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause into the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The provision that the seller will repurchase the home if Maurice loses his job within one year of the sale is referred to as which of the following? A. A condition subsequent B. A condition precedent C. An implied condition D. An express condition E. Both a condition precedent and an express condition

Q: College president Wally contracts with Alice to teach business law. Alice does a fine job teaching but gets mad at Wally and will not turn in grades. What type of order would Wally seek to require Alice to abide by her contract? A. An order of specific performance B. A compensatory order C. A nominal order D. A consequential order E. A demand order

Q: Which of the following was the result on appeal in the Case Opener, the case in which Sara Creek Property Company argued that an award of damages, rather than an injunction, was the appropriate remedy in response to its alleged breach of contract by allowing a new pharmacy to move into a shopping mall in competition with Walgreen's? A. That specific performance, but not an injunction, was the appropriate remedy. B. That an injunction, as well as damages, were appropriate remedies. C. That damages, rather than an injunction, was the appropriate remedy because damages could be calculated. D. That an injunction, rather than damages, was the appropriate remedy. E. That the contract had not been breached and that neither an injunction nor damages were appropriate.

Q: If the plaintiff wants a court order requiring the defendant to stop doing something, the plaintiff is seeking a(n) _______________. A. specification B. directive C. instructional edict D. demand E. injunction

Q: The termination of the contract is known as __________. A. rescission B. reformation C. restitution D. injunction E. compensation

Q: _________ is the return of any property given up under the contract. A. Rescission B. Reformation C. Restitution D. Injunction E. Compensation

Q: Under the UCC, when may orders for specific performance of a contract for the sale of goods be awarded? A. Only when the goods are unique. B. Only when the goods are in excess of 500 in quantity. C. Only when the goods have been ordered at least six months in advance. D. When the goods are unique and when the goods are in excess of 500 in quantity. E. When the goods are unique or in other proper circumstances.

Q: From what country did equitable remedies as applied in the U.S. grow out? A. France B. Italy C. England D. Spain E. Portugal