Business Final
Inadvertently, Brie loses her textbook during an afternoon in City Park. She eventually gives up any attempt to find it. The textbook will then most likely be considered
abandoned property
Miles obtains a property insurance policy from Nova Insurance Company for Miles's restored 1957 Chevy. Nova can cancel the policy if Miles
fails to pay the premiums
Leon transfers his shares of stock in Microsoft Inc. to National University as a gift. The school, which pays nothing for the stock, is the owner of the shares in
fee simple
Commercial Storage Corporation obtains an insurance policy that covers losses to the insured as a result of fire. This is
fire insurance
Safewise Insurance Agency contracts with Town & Country Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers). Under the UCC, identification
has taken place
Irene obtains an insurance policy that protects her against some risks of loss to the contents of her residence. This is
homeowners' insurance
To obtain the title to land without delivery of a deed, one person must possess the property of another
in an open, visible, and notorious manner
Mike owns a beach house in North Carolina in fee simple. This ownership interest is
potentially infinite in duration
Vern sells his apple orchard to Winnie. On Winnie's payment of the price, Vern transfers the title by deed. Vern is
the grantor
The deed that contains the most extensive covenants, or promises, against defects of title is
a warranty deed
Ordinary contract rights, patents and copyrights, and corporate stocks and bonds are all ____ Article 2 of the UCC.
excluded from
Banquets & Parties (B&P) contracts to buy 1,000 balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover
$500
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
April, when the calves are conceived.
Bram applies for a homeowners' insurance policy with Castle Insurance Inc. through Dian, an agent. In this transaction, Dian is
Castle's agent, not Bram's agent
Darby writes a check to Education Loan Management, Inc., that is drawn on Darby's account at Federal Bank. If the bank does not accept the check, liability for its amount is on
Darby
Dino is the beneficiary of a life insurance policy on Erin's life obtained from Fidelity Insurance LLC through Gillian, Fidelity's agent. The insured of this policy is
Erin
Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is
Home Repair.
Jill buys a kayak from a LakeCraft store, which agrees to keep it for her until she picks it up. Before Jill gets the kayak, an unforeseen tornado destroys the store and the goods. The loss is suffered by
LakeCraft.
James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by
Lani
Mary goes hunting during elk season. While trespassing on Nate's rural land, she shoots an elk. This elk is the property of
Nate
Nick is the beneficiary of a life insurance policy on Ollie's life obtained from Peoples Insurance Company through Quinn, an insurance broker. The insurer of this policy is
Peoples Insurance
Pauline has a fixed-term tenancy for her apartment with Quality Apartments. If Pauline abandons the premises before the lease expires
Quality may be required to mitigate its damages
Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to
Sue because Rob stole it
Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest on July 1, 2023. Home Bank has issued Gwen
a certificate of deposit
A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is
a destination contract.
Ellen conveys a house to Floyd with the right to possess and use the property for a period of time specified in an express contract. This is
a fixed-term tenancy
Kim and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of either owner, that owner's interest in the stock passes to the surviving owner. This is
a joint tenancy
A contract whereby a landlord transfers the right to possession and use of property to a tenant for rent is
a lease agreement
Sol allows Tiffany to camp on his land for several days and take photos for an upcoming exhibit of landscape photography. Sol has given Tiffany
a license
Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is
a merchant's firm offer.
Petra signs a check payable to Quincy, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is
a negotiation
Carl has an easement that allows him to drive across Dave's land to get to Carl's house. With respect to Dave's land, Carl right is
a nonpossessory interest
Brick & Mortar Stores Inc. signs a lease for a storefront owned by Commercial Properties Inc. The lease does not specify how long it is to last but does specify that rent is to be paid at certain intervals. This is
a periodic tenancy
Ross applies for a life insurance policy with Secure Insurance Company. The consideration Ross pays to the insurer is
a premium
Jack pays Kelly in good faith for a promissory note. Kelly warrants that the note has not been altered. This is
a presentment warranty
Adam promises his daughter Bev that she can have his restored 1968 Chevy Corvette when he dies. This is
a promise to make a gift
Emily writes and signs a check payable to "Festival Cinema." Georg, Festival's manager, indorses the check "For deposit only." This is
a restrictive indorsement
Paramount Bookstores buys fifty cases of an assortment of books from Quixote Publishing with the right to return the unsold books in lieu of payment. This is
a sale or return.
Lee pays Mobile Electronics $600 for a new phone. Under the UCC, this is
a sale.
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
a shipment contract.
Sully leases an apartment owned by Tropic Residences, Inc. Sully's transfer of his interest in the lease to Rico for a period shorter than the lease term is
a sublease
Grey rents an apartment to Hugh, who retains possession of the apartment after the lease expires without making any payment of rent and without Grey's permission. This is
a tenancy at sufferance
Jan lives in Ken's beach house without paying rent. Jan's tenancy is
a tenancy at will
Edna and Flavia buy a boat that they dock in a marina near Gulfport, Mississippi. On the death of either owner, that owner's interest in the boat passes to her heirs. This is
a tenancy in common
Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is
a time draft
Regional Freight LLC delivers a receipt issued by Storage Warehouse for goods stored in its facility to Transnational Inc., a buyer of the goods. This is
a warehouse receipt.
Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is
accession
Barley that fills County Grain Co-op's silo is fungible if the barley is
alike naturally, by agreement, or by trade usage.
If a lease does not limit the uses to which the leased property may be put, the tenant may make any use of it as long as the use
all of the choices
Insurance protection may compensate for
all of the choices
Jack owns a parcel of land. Jack tows a mobile home to the parcel and anchors it to the land near a stand of Douglas fir trees. Jack's real property consists of
all of the choices
Clark obtains from Dependable Insurance Inc. a policy that provides if a dispute arises between the parties concerning the settlement of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is
an arbitration clause
Lora leases a farm owned by Meadowland Acres, Inc. Lora's transfer of her entire interest in the leased property to Nate is
an assignment
Utility Company has the right to run its power lines across Vera's land. This is
an easement
Belle finds a tablet on the counter at Café Latte. She takes it to a police station where she is told that if it is not claimed by a certain time, she can obtain title to it. This is acquiring possession by
an estray statute
Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is
an order instrument
Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Todd is
an ordinary holder
To obtain office supplies for Doctors Medical Clinic, Emma executes a draft in favor of Floyd. A draft is
an unconditional written order to pay money
Soft Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may
await performance, sue Soft, or suspend its own performance
Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad, Inc., for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each acknowledge possession of the goods by a document of title. These parties are
bailees.
Winifred leases an apartment from Lakeside Apartments. When the lease ends, Winifred refuses to leave the apartment and stops paying rent. Lakeside can collect damages
based on the fair market rental value of the apartment
Fred and Joanne are married. Joanne purchases a car. Fred and Joanne each technically own an undivided one-half interest in the car. This is
community property
Nero and Omar agree to buy natural gas to sell to Power Refinery and to share storage costs until the refinery can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is
confusion
Article 2 of the UCC governs
contracts for the sale of goods.
Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain
cover
Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. Pine Mills, the seller, must
deliver the goods to a particular destination
Refined Metals Company and Superior Fabrication, Inc., enter into a contract under which Refined agrees to deliver a certain quantity of sheet metal to Superior each month. The contract does not include a price term. In a suit between the parties over the price, a court will
determine a reasonable price.
Quarry Equipment Corporation and Rock & Gravel Inc. enter into a lease of three bulldozers. Under the perfect tender rule, Quarry must ship or tender goods to Rock & Gravel that, with respect to the contract description, conform
in every way
Donald applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a binder, which
indicates that a policy is pending and states its essential terms
Raul wants to transfer a check to Schmidt. The check is defective if it
is clearly stamped "insufficient funds."
Gary rents an apartment from Home Properties. The apartment is destroyed in a fire that is not the fault of either party. Most likely, Gary
is no longer obligated to pay rent
In a dispute over a sale involving a skateboard, Greg argues that as to this deal Hobby Shop, where Greg bought the board, is a merchant. A court may determine whether the shop is a merchant by assessing whether
it holds itself out by occupation as having knowledge and skill unique to the skateboard in the transaction.
Dyan and Ed are partners who own and operate Footlong's, a chain of hot-dog stands. Their partnership obtains insurance on their lives. This is
key-person insurance
Leon obtains an insurance policy that will replace a portion of his monthly income from employment in the event that illness or injury causes a disability. This is
key-person insurance
Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain
liability insurance
Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is
liable to Gwyn for the amount of the check
Rick obtains an insurance policy from Stable Insurance Inc. The policy provides that on Rick's death Stable will pay $500,000 to Taylor, the beneficiary. This is
life insurance
World Hotels, Inc., insures its real and personal property to protect its financial interest should some event undermine its security. This is risk
management
Speedy's Auto Parts orders twenty tires from Tough Tires, Inc. Ten of the tires are delivered in a damaged condition. Speedy's
may accept the shipment with a reduction in price
Burt wants to lease a residence for two years from Condos Company. In most states, the lease agreement
must be in writing
Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is
negotiable
Vera gives Will a $500 check as payment for a debt. Will crudely increases the amount of the check to $5,000 and deposits the check in his First Bank account. Vera is liable for the payment of $5,000 to
no one
To finance the purchase of an electric guitar, Milos signs an instrument promising to pay to "National Lenders" $1,800 with interest in installments with the final payment due August 15, 2020. To be negotiable, this instrument must include on its face
not any conditional promises or orders to pay
Jim has a periodic tenancy that requires him to pay rent weekly. Jim wishes to terminate his tenancy. Most likely, Jim must give his landlord notice of at least
one week
Lindsey, an accountant for Madison & Monroe, acquires a negotiable instru-ment from Norma by promising to pay its face value in thirty days. Lindsey ac-quires the status of an HDC when she
pays the face value due on the instrument
Dick buys a fishing license and goes fishing. He catches a trout, cleans it, cooks it, and eats it. Dick's acquisition of the trout is by
possession
ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must
promptly notify ABC of the intent to cure
The legally protected rights and interests that a person has in anything of established value subject to ownership is
property
Vance owns a field where he grows cotton. When he sells the field to Wilson, he includes the cotton that is growing in the field. This sale is governed by
real property law
Talia, who is not an Urban Bank customer, attempts to cash a check drawn on the bank. The check is considered dishonored if Urban Bank
refuses to pay it
Entrepreneur LLC owes Data Analysis Company $2,000. Entrepreneur executes a note to Data Analysis as security for the debt. This security
satisfies the value requirement for HDC status
Rosa, a writer, has a computer in her office. She has a copyright on her most recent work, a memoir of her trip through South America. Her tangible personal property includes
the computer
In a sale of oranges from Citrus Grove Farms to Juice Factory Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Juice in this circumstance are generally determined by
the concepts of identification and risk of loss.
Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between
the contract price and the market price
Jay owns a farm in Kansas, with a farmhouse, barn, and other structures permanently attached. Jay grows corn on the property. Land includes
the corn, the soil, and the structures
Riley owns Superior Apartments. He promises each tenant that during the lease term, neither he nor any third party with an unlawful claim will interfere the tenant's use and enjoyment of the property. This is
the covenant of quiet enjoyment
Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming that its planes flying over his land violate his property rights. To succeed, his best argument is
the flights are low and frequent, interfering with enjoyment of his land
Clara rents an apartment from Dian that floods whenever there is a heavy rain. Dian refuses to fix the problem. She has breached
the implied warranty of habitability
Heidi owns a smartphone, a tablet, and a patent on an app. Her intangible property includes
the patent
Ed sells his car to Fran for $5,000, his bike to Gwen for $600, his game player to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of
the patent.
Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of
the piano and the gold ring.
Center City wants to acquire undeveloped private land within the city limits to construct a public park. The city brings a condemnation proceeding to obtain title to the land. This is
the power of eminent domain
Dairy Goods agrees to sell a certain quantity of ice cream to Event Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date
the seller is excused for any resulting delay
Orson signs a check "pay to the order of Painless Dental" drawn on Orson's account in Quantum Bank. To impose liability on Orson if the bank dishonors the check, Painless Dental should present it for payment within
thirty days
A state law prohibits gambling houses. Tim rents a building to Victoria under a lease that provides the premises are to be used only to house an illegal betting operation. This lease is
unenforceable
On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has
until July 15 to cure
Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of
usage of trade.
