BUS LAW Chapter 13

____________ goods are those that are in accordance with the obligations under the contract

Conforming

Which of the following is true of a firm offer?

It occurs when a merchant promises to hold an offer open without any considereation

Joshua, a merchant, promises in a signed writing to Pedro, a consumer, to hold an offer to sell goods open for five months without Pedro giving consideration in exchange. However, Joshua sells the goods to another consumer and Pedro sues him for breach of contract. Which of the following is true of this case?

Joshua is not bound by the contract, since the firm offers cannot exceed three months

Samantha was looking for a certain shade of thread to complete her needlework on a tablecloth. At a local shop, however, she was unable to decide which of the five selected shades would be the closest match to the cloth. The shop owner allows Samantha to take the selected shades home and decide which one she would want to have. This is an example of which of the following?

Sale on approval

Which of the following is true of insurable interest?

Sellers can retain the insurable interest to goods as long as they have the title to them

Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

The CISG governs only the formation of a sales contract and the rights and duties that arise from it

Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

The CISG governs only the formation of a slaes contract and the rights and duties that arise from it

Which of the following is true of destination contracts?

Title and risk of loss pass to the buyer once the seller tenders goods at a place as per the contract

In what respect is a bailment legally different from a sale?

Title does not transfer in a bailment

A bill of sale provides evidence of the transfer of personal property from one person to another

True

Braxton has an oral contract to deliver 500 cases of green beans to Mary for $10,000. During a court hearing concerning the validity of the contract, Braxton admits that he sold Mary 100 cases of green beans. The contract is enforceable to only 100 cases of green beans.

True

Buyers obtain an insurable interest even though they might later reject or return the goods to the seller.

True

Fish not yet caught by a commercial fisher are called future goods.

True

If a sale of goods contract offer is silent concerning the method of acceptance, it may be accepted in any reasonable manner, including shipment of goods.

True

In a contract with a merchant for which no delivery is required, risk of loss passes to the buyer when the buyer picks up the goods.

True

Merchant A orally enters into a $1,000 contract with Merchant B. Merchant A will be legally bound if Merchant B sends a written confirmation, even if Merchant A has not signed it.

True

____________ is a method of commercial dealing that is commonly used in a particular field or industry.

Usage of trade

In an ____________, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless no bid is made within a reasonable time.

auction without reserve

When goods are sent f.o.b. shipment, the title and risk of loss pass to the:

buyer at the point of origin

A(n) ____________ can make a(n) ____________ because it deals in ____________ in the ordinary course of business or has knowledge or skills peculiar to those goods

merchant; firm offer; goods of the kinds sold

A(n) ____________ can make a(n) ____________ because it deals in ____________ in the ordinary course of business or has knowledge or skills peculiar to those goods.

merchant; firm offer; goods of the kinds sold

If both parties are merchants, the UCC modifies the common law "____________" rule, by allowing ____________ terms to become a part of the contract, unless they ____________ change it.

mirror image; additonal; materially

Which of the following is true of oral contracts for the sale of goods of $500 or more?

An oral contract by a merchant is enforceable if a written confirmation is received by another merchant who does not object to within 10 days

Title may pass as soon as goods are identified to the contract, but only after they are in possession of the seller.

False

Which of the following is considered to be future goods?

Fish in the sea

MeatPackers, Inc. bought a new kind of refrigeration system from Coolit, Corp. for storage of its meats. As part of the contract, Coolit delivered the refrigeration system to the MeatPackers plant, installed it, set its temperature, and then monitored it for several hours to make sure it worked. Before they left, Coolit's technicians handed MeatPackers a bill of sale. Absent any other terms or conditions, MeatPackers, Inc. received title to Coolit's refrigeration system when:

Coolit handed MeatPacker the bill of sale

A gift is legally considered the same as a sale, since title passes in both a gift and a sale.

False

An automobile title certificate under the UCC has the legal status of a document of title

False

An automobile title certificate under the UCC has the legal status of a document of title.

False

An oral contract for the sale of specially manufactured goods involving a price of $500 or more is not enforceable unless it is in writing.

False

In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods

False

In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods.

False

In an auction with reserve, the auctioneer must accept the highest bid

False

In an auction with reserve, the auctioneer must accept the highest bid.

False

Jackson Furniture Co. states in writing that their offer to sell sofas to a hospital will be held open for 40 days. The written offer requires a consideration to be legally binding.

False

Massive Equipment Company sends machinery on approval to Mountain Moving Company. While in possession of the machinery, but prior to acceptance, Mountain becomes insolvent. The machinery is subject to the claims of Mountain's creditors.

False

Sellers always retain an insurable interest in the goods, even if they do not have title to them.

False

The Convention on Contracts for the International Sale of Goods (CISG) requires a written contract for the sale of goods when the price exceeds $5,000

False

The Convention on Contracts for the International Sale of Goods (CISG) requires a written contract for the sale of goods when the price exceeds $5,000.

False

Buyers obtain an insurable interest even though they might later reject or return the goods to the seller

True

Roberta receives a document of title for lumber she purchased. Even though she does not yet possess the lumber, the document transfers to her both title to the lumber and risk of loss for it.

True

The seller is said to have a security interest in shipped goods if the agreement between the buyer and seller allows the seller to retain title after the goods are shipped.

True

Under the UCC, a signature includes any symbol made with the intent to authenticate a writing

True

Under the ____________, an electronic signature is defined as "an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record."

UETA

Starbucks Coffee contracts with Juan Valdez coffee farms to purchase "all the coffee beans Starbucks needs for the next twelve months." The parties have a(n) ____________ contract.

enforceable; requirements

It is important to identify a ____________ contract because it includes both goods and services. If the sale of goods dominates the contract, then it will be governed by ____________; however, if services dominates the contract, then it will be governed by ____________.

hybrid; UCC Article 2; common law

A document of title allows the person who possesses it to

recieve the goods named in the document

A(n) ____________ includes any symbol, made with the intent to authenticate a writing.

signature

The Emmett School (ESD) district contracts with the GoldenFarms Dairy for "all of the milk" GoldenFarms can produce during ESD's current school year. The contract specifies a price, but no exact quantity of milk to be purchased is set in the contract. This contract is a(n):

valid output contract

If a person obtains property as a result of another's fraud, misrepresentation, mutual mistake, undue influence, or duress, the person is said to hold only:

voidable rights