business law chp 19
Which of the following is not an issue addressed by the UCC regarding ownership of the goods in sales contracts?
How does Chapter 7, 11, or 13 bankruptcy affect the ownership of goods?
According to UCC Section 2-501, which of the following occurs when the surrounding circumstances make it clear that the goods are those "to which the contract refers?"
Identification
According to the UCC, if the parties' contract is silent about the time for performance, performance must be tendered within ______.
a reasonable time
If Peter and James agree that Peter will buy 3,000 light bulbs from James at a price to be determined at the time of delivery, Peter and James have ______.
a valid and enforceable contract
In a sale on approval contract, the goods are delivered to the buyer primarily for ______.
the buyer's use
The law of sales of goods is codified in which part of the UCC?
Article 2
Which part of the UCC governs the lease of goods?
Article 2A
Greg rejects nonconforming goods that Smith sent to him. Before Smith can pick up the goods, they are damaged in a fire. Who bears the risk of loss?
Smith
Peter's Abattoir, Inc. (Peter's) signs a contract to to be the exclusive supplier of meat to Alvin's Wholesale Meats, Inc. (Alvin's). What does this mean according to the UCC?
Peter's must use its best efforts to supply meat to Alvin's.
Under the UCC, title to goods passes when the ______.
seller has completely performed his duties concerning physical delivery of the goods
Carl purchases a car from a wholesaler with a bad check, and Pat later purchases the car in good faith from Carl. Which of the following is correct?
Pat has good title against everyone, including the wholesaler.
The UCC applies to which of the following transactions?
The sale of fifty (50) bushels of corn
Martin steals a bike owned by Trout. Martin sells the bike to Eric. According to traditional property law, which of the following is correct?
Trout can recover the bike from Eric.
Jimmy rents a tractor for the three-month harvest season. Which of the following laws governs this transaction?
UCC Article 2A
Under the UCC, risk of loss depends on all but which of the following?
Whether both parties were merchants
Zane wants to buy Phil's bike. They agree on a price and Phil instructs Zane to pick the bike after 4pm Wednesday. Zane fails to pick the bike up and on Thursday it is stolen. If Phil is not a merchant, who bears the risk of theft on the bike
Zane because Phil tendered the bike
Buyers who repudiate a contract for identified, conforming goods before risk of loss has passed to them are liable for ______ for any damage to the goods ______.
a commercially reasonable time; that is not covered by the seller's insurance
Under the UCC, a merchant is ______.
a person who regularly deals in the kind of goods being sold
The UCC requires that parties to a contract for the sale of goods act in a(n) ______ manner.
commercially reasonable
Under the common law, if the parties have not agreed to a price in their contract, the court will ______.
conclude that the contract fails due to indefiniteness
The UCC rules regarding sale on approval contracts recognize the fact that such contracts are primarily ______ transactions.
consumer
A basic rule of property law is that a person can transfer ______ he himself possesses.
no greater rights in property than
In a contract for the sale or return of goods, the seller provides the goods to the buyer primarily for ______.
resale, with the buyer's right to return them
When the contract between the buyer and the seller merely requires that the seller ship the goods, title passes to the buyer when the ______.
seller delivers the goods to the carrier
Sellers have an insurable interest in goods when ______.
they have title to the goods or a security interest in them
Bach purchases five (5) bushels of grain from James, and James is to deliver the grain. The parties have not discussed payment terms. Payment will be due ______.
upon delivery
Marco obtains some inventory from Davis by giving him a bad check. Marco has _____ title. Marco can transfer _____ title to a good faith purchaser for value.
voidable; good
In a sale on approval contract, the buyer's creditors ______ reach goods held on approval, and return of the goods is at the ______ risk and expense.
cannot; seller's
Placing the risk of loss on the buyer in sale or return contracts recognizes that such contracts are generally ______ transactions.
commercial
According to the ______, anyone who entrusts goods to a merchant who regularly deals in such goods gives that merchant the power to give good title to a buyer in the ordinary course of business.
entrusting rule
Under the UCC, buyers in the ordinary course of business take goods ______ in the goods that their seller may have given a third party.
free of any security interest
Under the UCC, merchants are held to a(n) ______.
higher standard than non-merchants
A seller who has voidable title can pass good title ______.
if the buyer is a good faith purchaser for value
The UCC requires that parties to a contract for the sale of goods act ______.
in good faith
A buyer ______ is one who, in good faith, buys goods from a person dealing in goods of that type ______ that the sale violates the ownership rights of any third party.
in the ordinary course of business; without knowing
If the buyer has the risk of loss when the goods are lost during transport, the buyer is ______.
liable for the contract price of the goods
Title to goods indicates ______ the goods.
ownership of
The UCC recognizes that ______.
parties to sales contracts frequently omit terms from their agreements
How do parties have the power to control who has the risk of loss during transport?
By indicating who has the risk in their agreement or by using a commonly accepted shipping term in their contract
Walter drops his heirloom watch off at Timely Watch Shop, Inc. (Timely) for repairs. Timely mistakenly sells the watch to Earl. Walter would like to recover the watch from Earl. Which of the following is correct?
Earl can keep the watch because he has good title.
When the buyer rejects goods due to nonconformity with the underlying contract, what happens to title?
It automatically reverts to the seller.
Which of the following parties bears the risk of loss associated with loading the goods in a CF (cost and freight) contract?
The seller
Which of the following parties bears the risk of loss associated with loading the goods in a CIF (cost, insurance, freight) contract?
The seller
Thad is a tobacco farmer who has fifty (50) bushels of cured tobacco stored in Earvin's storage. Dawn buys thirty (30) of the bushels. When does the risk of loss pass to Dawn (assuming no document of title is involved?)
When Earvin acknowledges Dawn's right to possession
Assume that certain goods are in the hands of a third-party bailee, that they are to be delivered without being moved, and the goods are covered by a document of title. When does the risk of loss pass from the seller to the buyer?
When the buyer receives the document of title
When a contract for the sale of goods does not call for goods to be shipped and the seller is a merchant, when does the risk of loss pass from the seller to the buyer?
When the buyer receives the goods
When a contract for the sale of goods does not call for goods to be shipped and the seller is a non-merchant, when does the risk of loss transfer from the seller to the buyer?
When the seller tenders delivery of the goods
If the contract is silent about the place for delivery, the UCC says that the goods are to be delivered ______.
at the seller's place of business
If delivery is to be made without moving the goods, title passes ______ if the goods ______ to the contract.
at the time and place of contracting; have been identified
A buyer rejects the ten (10) bushels of white corn he received from the seller because the contract specified twenty (20) bushels of yellow corn. Title ______.
automatically reverts to the seller
When a buyer has entered into an contract for exclusive dealing with seller, this means that ______.
both parties must use their best efforts to perform the contract
The UCC contains rules that assure merchants and consumers of goods that laws will be applied in keeping with ______.
commercial expectations
If goods are shipped FAS (free alongside), the seller must ______.
deliver the goods alongside the vessel at its own risk and expense
If the contract calls for the seller to deliver a bill of lading to the buyer, title passes when the document of title is ______.
delivered
If the contract calls for the seller to deliver a warehouse receipt to the buyer, title passes when the document of title is ______.
delivered
The term "ex-ship" ______.
does not specify a particular ship and places the risk on the seller until the goods are unloaded from whatever ship is used
When the parties have not agreed to all of the terms of their agreement, the UCC will ______.
fill in the blanks with common trade practices
A jewelry dealer mistakenly sells Harriet a ring that Jones had dropped off for sizing. Harriet has ______.
good title against everyone
Article 2 of the UCC applies only to transactions in ______.
goods
If the contract requires delivery of the goods by the seller, title passes to the buyer when the ______.
goods are delivered and tendered to the buyer
In a destination contract, ownership and risk of loss pass from the seller and the buyer when the ______.
goods are delivered to the specified destination
Buyers have an insurable interest in goods at the moment the goods are ______.
identified to the contract
Unless the parties agree to the contrary, the UCC says that the goods ordered are to be delivered ______.
in a single-lot shipment
The parties have the power to control who has the risk of loss during shipment by ______.
indicating who has the risk in their agreement
Under the UCC, a requirements contract obligates the seller to ______.
provide the buyer with as much of a particular item that the buyer needs for a set period of time
Under the UCC, an output contract obligates the buyer to ______.
purchase all of a particular item the seller can manufacture for a set period of time
When a seller has tendered non-conforming goods and the buyer rejects these goods, the risk of loss remains with the ______.
seller until the defect is cured
According to the Uniform Commercial Code (UCC), goods are defined as ______.
tangible personal property
Goods sold FOB (free on board) shipment become the property of ______ once they are delivered to the carrier.
the buyer
In a contract for the the sale or return of goods, if the goods are stolen while in the buyer's possession, the risk of loss is with ______.
the buyer
