Question 1

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

Accepted Answer

A)   a bill of lading.
B)   a destination contract.
C)   a shipment contract.
D)   a warehouse receipt.E) A) and C)
F) A) and B)

Question 2

Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when

Accepted Answer

A)   Roasters delivers the goods to Speedy.
B)   Roasters and Outdoor enter into their contract.
C)   Speedy transports the goods to Outdoor.
D)   Outdoor begins to use the grill.E) A) and C)
F) A) and D)

Question 3

Identification is not significant for the buyer or lessee because it does not impact their ability to insure the goods.

Accepted Answer

A) True 
 B)False

Question 4

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by

Accepted Answer

A)   Grocers.
B)   Hilltop.
C)   Refrigerated.
D)   all of the parties as owners in common in equal measure.E) B) and C)
F) A) and B)

Question 5

The parties can agree in their contract when identification will take place.

Accepted Answer

A) True 
 B)False

Question 6

EZ Workouts, Inc., offers to sell a treadmill to Fred and sends it to him on a trial basis. This is

Accepted Answer

A)   a bailment.
B)   a delivery ex-ship.
C)   a sale on approval.
D)   a sale or return.E) A) and B)
F) All of the above

Question 7

Beef, Inc. raises calves to sell. Beef breeds its cows in April, and the cows calve in February of the following year. In January, Cold Cuts Inc. contracts with Beef to buy fifty calves. Identification takes place in

Accepted Answer

A)   January, when the contract is signed.
B)   April, when the calves are conceived.
C)   February, when the calves are born.
D)   when Cold takes possession of the calves.E) A) and C)
F) B) and D)

Question 8

If the contract calls for the sale or lease of specific goods that are already in existence, identification takes place when the goods are shipped.

Accepted Answer

A) True 
 B)False

Question 9

When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer until the buyer takes actual possession of the goods.

Accepted Answer

A) True 
 B)False

Question 10

In a destination contract, risk of loss passes to the buyer or lessee when the goods are delivered to the carrier.

Accepted Answer

A) True 
 B)False

Question 11

In a sale on approval, a buyer takes goods primarily for resale, with a right to return any goods that fail to sell.

Accepted Answer

A) True 
 B)False

Question 12

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is

Accepted Answer

A)   a bill of lading.
B)   a destination contract.
C)   a shipment contract.
D)   a warehouse receipt.E) C) and D)
F) All of the above

Exam 18: Title and Risk of Loss

Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when

Correct Answer
verified

When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer until the buyer takes actual possession of the goods.

Correct Answer
verified

Beef, Inc. raises calves to sell. Beef breeds its cows in April, and the cows calve in February of the following year. In January, Cold Cuts Inc. contracts with Beef to buy fifty calves. Identification takes place in

Correct Answer
verified

In a destination contract, risk of loss passes to the buyer or lessee when the goods are delivered to the carrier.

Correct Answer
verified

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by

Correct Answer
verified

EZ Workouts, Inc., offers to sell a treadmill to Fred and sends it to him on a trial basis. This is

Correct Answer
verified

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is

Correct Answer
verified

The parties can agree in their contract when identification will take place.

Correct Answer
verified

Identification is not significant for the buyer or lessee because it does not impact their ability to insure the goods.

Correct Answer
verified

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

Correct Answer
verified

In a sale on approval, a buyer takes goods primarily for resale, with a right to return any goods that fail to sell.

Correct Answer
verified

If the contract calls for the sale or lease of specific goods that are already in existence, identification takes place when the goods are shipped.

Correct Answer
verified

Exam 18: Title and Risk of Loss

Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when

Correct AnswerverifiedShow Answer

When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer until the buyer takes actual possession of the goods.

Correct AnswerverifiedShow Answer

Beef, Inc. raises calves to sell. Beef breeds its cows in April, and the cows calve in February of the following year. In January, Cold Cuts Inc. contracts with Beef to buy fifty calves. Identification takes place in

Correct AnswerverifiedShow Answer

In a destination contract, risk of loss passes to the buyer or lessee when the goods are delivered to the carrier.

Correct AnswerverifiedShow Answer

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by

Correct AnswerverifiedShow Answer

EZ Workouts, Inc., offers to sell a treadmill to Fred and sends it to him on a trial basis. This is

Correct AnswerverifiedShow Answer

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is

Correct AnswerverifiedShow Answer

The parties can agree in their contract when identification will take place.

Correct AnswerverifiedShow Answer

Identification is not significant for the buyer or lessee because it does not impact their ability to insure the goods.

Correct AnswerverifiedShow Answer

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

Correct AnswerverifiedShow Answer

In a sale on approval, a buyer takes goods primarily for resale, with a right to return any goods that fail to sell.

Correct AnswerverifiedShow Answer

If the contract calls for the sale or lease of specific goods that are already in existence, identification takes place when the goods are shipped.

Correct AnswerverifiedShow Answer

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