ch 20 to ch 30
Margaret had tickets to a sold-out concert and saw that she was going to be unable to attend. She asked Bill if he would like the tickets and he said yes. On the day before the concert, Bill went by her house to pick up the tickets but Margaret said she had changed her mind and that Bill could not have the tickets. What element of a gift is missing that keeps Bill from being able to seek damages for the tickets?
Delivery
Howey stole a laptop from Jessica and then sold it to a pawn shop where Monica bought it for $50. Who has good title to the laptop?
Jessica
__________ property means land and things embedded in the land.
Real
When goods are delivered to a common carrier for immediate shipment and while they are in transit, what are the exceptions to the normal liability for any loss or damage to the goods?
a. An act of God. b. An act of a public enemy. c. An act of public authority. d. All of these are correct.
On Monday, Middleton Concession Stands, contracted with Easy Express to deliver a truckload boxed pretzels and popcorn to be sold at a county fair. According to the contract, the goods were to be delivered by Friday at 8am so that Middleton could set up their stand for the fair which ran on Saturday and Sunday. The truck driver got lost and did not arrive until Sunday at noon preventing Middleton from selling those products for the majority of the event. Middleton refused the shipment saying that the fair was almost over and they didn't have time to set up to sell the pretzels and popcorn. Easy Express is suing Middleton for the delivery amount. Is Easy Express entitled to payment?
a. No, because they did not make the delivery as specified in the contract.
Under the UCC, for a contract or policy of insurance to be valid, the insured must have:
a. an insurable interest.
A gift causa mortis is revoked if:
a. the donor does not die. b. the donor revokes the gift before dying c. the donee dies before the donor. d. All of these are correct.
As security for unpaid transportation and service charges, a common carrier has:
a. the right to a lien on goods that it transports. b. a lien that includes the cost of preservation of the goods. c. a lien that secures demurrage. d. All of these are correct.
If appropriate assurance is not given in response to a demand for assurance of performance, the demanding party may:
a. treat the contract as repudiated.
Under the UCC an illegal contract is:
a. void.
The relationship of guest and hotelkeeper does not automatically end when the hotel bill is paid. It ends:
a. when the guest's bill is paid. b. when the guest leaves or ceases to be a transient. c. when the guest advises the hotelkeeper that the guest is leaving. d. when the guest asks to take on the more permanent status of an employee.
A bailee's __________ gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid.
b. lien
Acceptance of goods is not shown by:
b. payment for the goods if they are sent COD.
Which of the following is required for delivery of goods?
c. That the goods be delivered according to the terms of the contract.
In which of the following situations does the seller have the right to cure?
c. Where the buyer has revoked acceptance of nonconforming goods.
Larry leaves his car in a public parking garage. Is this a bailment?
c. Yes, because he has left his car in the possession of the parking garage owner.
RTC International located in Miami, enters into a contract that states that goods are to be delivered by Fast Fright, a commercial carrier, to Dayton Unlimited, a buyer in New York. If RTC wants to retain title until delivery, which of the following is the best option?
c. a destination contract.
A party to a sales contract who is afraid that the other party will not perform may seek to gain additional confidence by demanding some form of:
c. assurance.
A common carrier must deliver goods:
c. at the usual place of delivery at the specified destination.
Goods that are not yet in existence or are not yet owned by the seller are __________ goods.
c. future
In a __________, no sale takes place (meaning there is no transfer of title) until the buyer approves, or accepts, the goods.
d. sale on approval
Delamar Farms grows green beans. Green Hills Products contracts with Delmar to provide 3 tons of beans for their cannery for $75,000. Before the beans can be harvested, a reservoir near Delamar Farms breaks and the area floods, destroying the entire bean crop. Green Hills says that Delamar has to provide them with beans at the contract price, even if Delamar has to purchase them from a neighboring farm. What grounds, if any, can Delamar use as a defense to non-performance?
d. there is no defense in this case. Delamar farms would be required to provide green beans.
When goods are sold at an auction in separate lots, the title to each lot passes:
d. when the auctioneer announces that the lot in question has been sold to the bidder.
Which of the following is NOT a classification of ordinary bailments?
For the sole benefit of the third party beneficiary.
Sam, a buyer in Atlanta enters into a sales contract with JP Manufacturing, a seller in Chicago. If the contract does not mention the place for delivery of the goods, where will Uniform Commercial Code (UCC) likely require the delivery to be made?
a. At JP Manufacturing's place of business in Chicago.
Zoe is going on vacation for 3 weeks and leaves her dog at the kennels during her trip. The kennel chargers her $100 per week. What type of bailment arrangement is this?
a. Bailment for mutual benefit
__________ represents a pattern of performance between the parties to a contract.
a. Course of dealing
When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?
a. If he fails to reject the goods after he has had a reasonable opportunity to inspect them.
Tablets Plus, Ltd. enters into a contract with Electronics Mfg, Inc. to manufacturer one million tablets to be delivered by September 30th, in time for the holiday season. Electronics Mtg. notifies Tablets Plus that it will not perform the contract on August 1st. In this situation, the notice is
a. an anticipatory repudiation.
When delivery is to be made without moving the goods, unless otherwise agreed, title passes:
a. at the time the contract is entered into by the buyer and seller.
Office Mate, Inc manufactures up-scale leather office chairs primarily used by executives or in board rooms. They make approximately 50 items per day that are then stored on-site at the manufacturing facility until an order is placed and the items are tagged for delivery. Office Mate had approximately 100 black chairs and 100 brown chairs on hand when Jenpro Corp ordered 20 brown chairs for their new office building. Before the Jenpro order was pulled from storage, part of the facility caught fire destroying all the chairs that were stored. Why doesn't Jenpro have to pay for the chairs?
a. because they were not identified goods
When a carrier accepts goods for air transportation, it ordinarily issues to the shipper a(n):
airbill
Sand and Surfboards in Anaheim, California has entered into an "FOB place of shipment: Anaheim" contract to sell 250 surf boards to Big Buy Stores in Miami, Florida. The boards will be transported by Tandem Trucks, a commercial carrier. When the truck, loaded with the surf boards, gets to Texas, it is involved in a multi-car accident and the surfboards are all damaged and unusable by Big Buy stores. What is the likely outcome of this situation?
b. Big Buy Stores must still pay for the goods according to the contract price and terms.
Dylan ordered 5 cases of plastic cups to use in his catering business from Plastics Worldwide, Inc. No shipment or delivery provision was made in the contract. Under the Uniform Commercial Code (UCC) how or where will the delivery take place?
b. Dylan will be required to take delivery at Plastics Worldwide's place of business.
If a contract contains a delivery term of __________, the seller's responsibility is to get the goods to the buyer.
b. FOB
Which of the following is not a remedy of the buyer?
b. The buyer has the right to stop delivery of the goods.
Which of the following forms of co-tenancy does not have right of survivorship?
c. Tenancy in common.
Connor needs a new copy machine for his law office but he isn't sure which one to get. Union Business Machines offers to let him try out their model 200A for 10 days. If he has not returned the copier in 10 days, he will be billed for the sale price. What type of sales contract is this?
d. Sale on Approval
The Hacienda Hotel has enacted a hotelkeeper's lien on the baggage of Ralph, a guest of the hotel who did not pay his bill. Which of the following is FALSE about that lien?
d. The hotel can retain Ralph's baggage, even if he pays the bill, as a stipulation of the lien.
Noah places an advertisement online selling his car. Through several emails, Lilly agrees to purchase the car. Noah drives to Lilly's house, she pays him, and he gives her a bill-of-sale. When Lilly he car to be serviced, the mechanic tells her that the car was stolen from him last week and he refuses to return it to Lilly. Who has the right to retain the car?
d. The mechanic
Big River Farms grows granny smith apples which are then sold different companies. This season, Big River produced 20,000 pounds of apples. Which of the following best describes the apples?
d. fungible goods
The commercially reasonable charges incurred by a seller in caring for goods after the buyer's breach are recoverable by the seller in an action for damages as:
d. incidental damages.
The CISG applies to:
d. the international sale of goods.
Ace Appliances agrees to sell Jason one stainless-steel oven for $700. It is to be delivered to Jason's home by July 7. On July 5, Ace Appliances delivers the same oven, but in black rather than stainless-steel. Under the perfect tender rule, which of the following steps should Jason take to effectively reject the goods?
a. Jason must call Ace Appliances and notify them that the wrong oven was delivered.
The Weston Fertilizer Company stored its goods with the Sasson Warehouse Company and received a negotiable warehouse receipt. Weston then borrowed money from the Second Bank and turned over the warehouse receipt as security. Weston, the fertilizer company, defaulted on the bank loan and the bank demanded that Sasson Warehouse turn the goods over to them. Sasson stated that it already had delivered the goods to Weston Fertilizer Company on the strength of that company's promise that it would surrender the receipt shortly thereafter. The Second Bank sued the Sasson Warehouse for the value of the goods. What is the likely outcome?
a. Judgment will be for Second Bank.
Mason ordered a set of golf clubs from Sports Unlimited and paid for them with a credit card. The clubs were delivered to his home on May 1. When Mason opened the box, he discovered that the clubs were the wrong brand. He immediately, that same day, contacted Sports Unlimited and asked for a refund. Sports Unlimited said they will issue the refund once the clubs are returned. Which of the following is correct regarding return of the clubs?
a. Mason is entitled to keep the clubs until a refund has been issued.
Mark agreed to sell his car to Henry for $5,000. The contract required Mark to take the car on that same day to a mechanic where Henry was going to have certain repairs made. Henry paid Mark the money, kicked the tires and said, "I'm glad you're mine," and drove off. Mark then drove the car on to the trailer and drove the car to the mechanic. When does the title pass to Henry?
a. When it is delivered to the mechanic.
A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?
a. Where the goods have been delivered and accepted. b. Where payment has been accepted. c. Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. d. All of these are correct.
A buyer in New York enters into a sales contract with a seller in Los Angeles. If the contract makes no mention of where the delivery of the goods will take place, the place of delivery will be:
a. at the seller's business or residence in Los Angeles.
A common carrier transporting goods under a COD shipment may accept which of following forms of payment:
a. cash. b. certified checks. c. cashier's checks. d. All of these are correct
A merchant is defined as a person who:
a. is a dealer in a particular type of goods. b. by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. c. employs an agent or broker whom he holds out as having such knowledge or skill. d. All of these are correct.
A transferee of a nonnegotiable warehouse receipt acquires only the title and rights that transferor had the actual authority to transfer. Therefore, the transferee's rights:
a. may be defeated by a good-faith purchaser of the goods from the transferor of the receipt.
The statute of limitations for breach of a sales contract:
a. may be reduced by the buyer and the seller to one year.
Most courts hold that when a customer takes an item from the shelf in a self-service store, there is:
a. no sale.
A bill of lading that consigns the goods to a named person is called a:
a. nonnegotiable bill of lading. b. straight bill of lading. c. None of these are correct. d. All of these are correct.
A seller's right to retain possession of goods until the seller has been paid is called a:
a. seller's lien.
An aggrieved seller may:
a. withhold delivery. b. resell or recover damages for non-acceptance or recover the price. c. cancel the contract. d. All of these are correct
Wyatt, as a representative of East Coast Shoes, delivered 50 crates of shoes for storage to ATC Warehouse, a public warehouse, just as the warehouse was about to close. Owen, the warehouse employee could not find the receipt form, and being in a hurry, he wrote on a plain piece of paper all of the details of the transaction, signed it and gave it to Wyatt as a receipt. When Wyatt went back to retrieve the shoes, he was told they had been sold at public sale because no record of the transaction could be found. Wyatt then produced the signed, detailed receipt, but ATC Warehouse refused to take liability because the proper form was not used. Who is liable for the shoes?
b. ATC Warehouse because no form is required is the receipt is specific
Middleton Farm entered into a contract Bagels Bakery to provide the bakery with milk, cheese and butter products. Middleton makes delivers twice per month and the bakery is billed at the end of the month. For the past few months, the bakery has been making payments late and has asked for an extension several times. The owner of Middleton then reads a newspaper article stating that several businesses in town, including Bagels Bakery are reporting severe economic downturns because of a growing criminal element in the downtown area. Middleton fears that they will not get paid for their deliveries to the bakery so they ask to see Bagels' financial statements from the past year. The owner of Bagels says it is not necessary and he gives his word to Middleton Farms that the bills will be paid on time. What, if anything, is Bagels required to do?
b. Bagels would be required provide the financial statements.
Mark wants to give Susan his car. How can he effectively "deliver" it?
b. By giving her an indorsed title certificate.
Edward was a merchant who deposited 4,000 barrels of vegetable oil in a public warehouse operated by Standard Warehouse. Edward was issued a negotiable warehouse receipt for the oil. Edward found himself in needed cash after some bad business decisions so he duly negotiated the warehouse receipt to Dallas Enterprises for cash. Edward continued to make bad business deals and never repaid Standard Warehouse or Dallas Enterprises. An agent from Dallas Enterprises requested the oil from Standard Warehouse and offered to remit the warehouse receipt. Standard refused to release the oil, claiming that they had a lien on the oil for Edward's debt owed to them. Who is entitled to the 4,000 barrels of vegetable oil?
b. Dallas because they have the negotiable warehouse receipt.
Bill orders a pair of boots from Rooks Shoes to be delivered by Friday at 5 p.m. When the boots are delivered to his office on Friday afternoon, he is in conference with a client. His assistant accepts delivery and places the boots in his closet. Bill takes the boots home and when tries them on Saturday evening, he discovers that they do not fit correctly, so he calls Rooks on Monday and informs them that he is returning the boots and asks for the correct size. Rooks says they no longer have that style in his size. Can Bill revoke acceptance?
b. He can revoke acceptance if Rooks cannot send him the correct size.
When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor's loss?
b. The bailor.
Andy entered the Hotel South to attend a conference being held within the hotel. Andy left his laptop in his locked room during one of the sessions. The laptop was gone when he returned to his room. At common law, what responsibility would the hotel have had as innkeeper?
b. The hotel is liable for any property that a guest might bring into the hotel.
Which of the following transactions is governed by Article 2 of the UCC?
b. The sale of oranges to be picked from a 10-acre grove.
Commercial GC, Ltd. orders 100 doors from WoodWorks, a company in California. They are sent "F.O.B. Hartford, Connecticut," but they are damaged in transit. What are the likely consequences?
b. WoodWorks will have to replace the doors or refund their money.
In a consignment, the dealer-consignee is often referred to as a(n):
b. factor.
A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:
b. if the cancellation precedes the seller's attempt to retract her repudiation.
The definition of "usage of trade" includes:
b. language and customs of an industry.
Chase and Reid are friends and decide purchase and restore a classic car together. Reid passed away suddenly and his share of the car was transferred to his 2 children. What type of ownership would this be?
b. tenancy in common
The legal relation that arises when one person delivers possession of personal property to another under an express or implied agreement to return the property at a later date is called a(n):
bailment
Bartlett's Barn operates an on-line store in which it sells home furnishings. Their return policy states, among other things, that the buyer must notify the store within 5 business days by using an on-line form and they will then be able to print-out a return label. Ginny purchased a chair from them which was delivered on a Wednesday. On Friday, she discovered that one of the wooden legs was split so she boxed it back up and sent it back to the store asking for a refund without using the online form. The chair was received at Bartlett's the following Friday (8 days after the chair arrived). Bartlett's refused to accept the return because the 5 business days had expired and because Ginny didn't use the proper form. What is the likely outcome of this on-line conflict?
c. Ginny is not entitled to a refund because she did not adhere to the contracts stated time limit and requirements, regardless of Uniform Commercial Codes (UCC) interpretations.
M & Z Co. offers a "subscription" for two bottles of wine to be delivered every month for one year. Payment must be made within two weeks of delivery. Bob placed a subscription and began receiving shipments of wine each month. On the fourth month, one of the bottles of wine that arrived was bad. What are Bob's options?
c. He can reject the installment and refuse to pay for it if M & Z cannot cure it.
Ryan is selling custom motorcycles on consignment from several manufacturers. He sells a Mach 5 motorcycle to Mr. Hunter who is giving it to his son for birthday gift. A few weeks later Mr. Hunter comes in with the police because he has discovered that the motorcycle was actually stolen. Ryan claims he doesn't know anything about the motorcycles being stolen and that he is only selling on consignment and therefore not liable for them all. While the police launch an investigation, Mr. Hunter demands his money back but Ryan refuses saying he genuinely didn't know it was stolen and therefore did nothing wrong in selling it. Who is the owner of the motorcycle?
c. Mach 5 because they are the manufacturer from whom the bike was stolen
Mary cleaned her dorm room in the spring and left a pile of books in Sara's room. Mary told everybody that the books were a gift to Sara. Does Sara own the books now?
c. No, because Sara did not accept the books.
Marilyn brought her $300 silk dress to University Dry Cleaners to be cleaned. On the back of the ticket she received in exchange for the dress was written, "Liability limited to ten times the cost of cleaning." Marilyn's dress was lost and University now claims it owes her only $96.50, ten times the cost of cleaning. Is this true?
c. No, because the limitation was not communicated to her.
Northern Express is a common carrier hired by Hermitage Paper Company. Northern Express has a large storage facility where the shipments from Hermitage Paper remain for up to 2 weeks before they are loaded on the trucks and shipped to the destination. Northern receives notification to ship 2 crates of paper to American Supply which was delivered and accepted. When American Supply opened the boxes, they saw that there was water damage to the bottom of both packages making about half of the goods unusable. When questioned, Northern Express discovered that they had a plumbing leak in their facility and it had damaged some of the boxes. Who is liable for the damaged paper goods?
c. Northern Express because they damage was done in their warehouse
Over the past few years, Big Mart had contracted with several freight companies to deliver their products from their warehouse distribution centers to their stores. After multiple delivery delays and damaged products, Big Mart purchased their own fleet of trucks to deliver the goods. What type of carrier has Big Mart become?
c. Private Carrier
While Michael is visiting Mr. Kilorn, he goes into the library and picks up a music box that is part of Mr. Kilorn's collection. Michael overwinds the stem and it breaks. Mr. Kilorn takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Who now has good title to the music box?
c. Robert because he purchased the music box in good faith from a business who regularly sells those items.
A warehouse is not an insurer of goods. A warehouse is liable for:
c. loss or damage to goods stored when the warehouse is negligent.
A transferor makes certain implied warranties to the transferee when a bill of lading is transferred. These warranties include all except that:
c. not applicable to negotiable transfers.
The standard for commercial impracticability is:
c. objective.
A liquidation of damages clause is valid if it:
c. reasonably attempts to estimate the actual harm caused by a breach.
When goods are sold and delivered to the buyer with an option to return them to the seller, a(n) __________ has occurred.
c. sale or return
A third person to whom a joint tenant's interest is transferred becomes a(n):
c. tenant in common.
To revoke acceptance of goods:
c. the nonconformity must substantially impair the value of the goods.
A "sale" of goods happens when:
c. the transfer of title to the goods is passed.
When goods are sold for consumer use and personal injuries are sustained, a total exclusion of liability in the sales contract is:
c. unconscionable.
Addison has a retail space in a busy town where she sells handmade furniture and woodcraft on consignment for local artisans. One of the people she sells for is Mr. Henry who makes tables and chairs. Addison really like one of the tables that Mr. Henry made so instead of placing it in her store, she took it home and is using it in her house for an upcoming party. While visiting her home, Mr. Henry notices the chair and demands that she pay him for it if she is going to use it in her home. Addison refuses saying she will put it back in the store and sell it after the party. Who is the rightful owner?
d. Mr. Henry is the owner as the consignor
Liam is frustrated with his cell phone because he is often without service and drops calls. After being unable to get the phone to turn on, he throws it in his trashcan by the roadside. Niall, his neighbor, sees this happens. The next day, just before the trash truck comes, Niall looks in the trashcan and sees that the phone is still there so he takes the phone and is able to get it working. When Liam sees that Niall has the phone, he asks for it back. Who is entitled to the phone?
d. Niall because he has possession of the phone.
Peachtree Shoe Outlet ordered a shipment of 25 pairs of sandals, 25 pairs of boots, and 25 pairs of sneakers from NKT Manufacturing Inc. When the shoes arrive, there were 25 pairs of sandals, 25 pairs of boots, and 25 pairs of dress shoes. Even though the order is wrong, they did not notify NKT and displayed all the shoes for sale. At the end of the month, when the bill arrives, Peachtree refuses to pay for the dress shoes because they didn't order them. What is the likely outcome?
d. Peachtree will have to pay for the goods because acceptance was implied.
Mia needs a place to store some boxes and items that she brought back from college so she rented a storage unit from Home Town Storage for the summer. She moved in her things and locked the unit with her own lock, and paid for all 3 months in advance. What type of bailment is created by this agreement?
d. no bailment is created
If a seller elects to resell the goods remaining in the seller's possession after the buyer breaks the contract, the seller need not give:
d. notice to the original buyer if the goods are perishable.
A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:
d. stated in a signed letter that the offer would not be revoked for a specified period of time.
A contract involving both services and goods is classified as a contract for the sale of goods if:
d. the sale of goods is the dominant aspect of the transaction.
A building is not essential to __________, an entity that stores goods of others for compensation. Thus, an enterprise that stores boats outdoors on land could be categorized that way.
d. warehousing
Insurable interest cannot pass from the seller to the buyer unless existing goods have been:
identified
To establish a gift, the party claiming to be the donee must prove.
intent and delivery
A person becomes a(n) __________ at the moment of taking possession of abandoned personal property.
owner
If the goods the seller has tendered do not conform to the contract in any way, the can __________ the goods.
reject
