Business Law Final

true

In a sale or return, the seller delivers the goods to the buyer with the understanding that the buyer can set aside the deal by returning the goods.

true

Two parties' prior dealing may be considered to resolve an ambiguity in a contract between them.

false

An innocent buyer from a thief acquires title to the goods as a good faith purchaser.

true

A buyer has an insurable interest in identified goods.

true

A contract in which a buyer is allowed to take goods on a trial basis is a sale on approval.

false

According to the UCC, one or more open terms will always cause a sales or lease contract to fail for indefiniteness.

true

Article 2 of the UCC governs the sale of goods.

true

C.I.F. stands for "cost, insurance, freight."

true

Entrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.

true

If a contract for a sale of goods does not include a price term, it may still be enforceable.

false

If a contract for a sale of goods does not include the delivery date, there is no basis for enforcing it.

true

If a contract for a sale of goods does not include the quantity, it may still be enforced if it is a requirements contract.

false

If a contract for a sale of goods does not include the terms for payment, there is no basis for enforcing it.

false

If a seller is a merchant, the risk of loss to goods held by the seller passes to a buyer on tender of delivery.

false

If a seller is not a merchant, the risk of loss to goods held by the seller passes to a buyer when the buyer takes physical possession of the goods.

true

In a sale on approval, title and risk of loss pass only when the buyer accepts the goods.

true

The UCC defines a sale as occurring when title passes from the seller to the buyer for a price.

true

The UCC imposes some different rules of conduct on merchants and consumers.

false

The UCC will, in all cases, impose the same standards on merchants than it imposes on consumers.

true

Under a shipment contract, the risk of loss passes to the buyer when the seller places conforming goods in the possession of the carrier.

false

Under all circumstances, title passes to the buyer at the time and place at which the seller physically delivers the goods.

false

Unless a contract provides otherwise, it is assumed to be a destination contract.

true

When a document of title is required, title passes to a buyer when and where the document is delivered.

true

When no document of title is required and delivery is made without moving the goods, title to identified goods passes when a contract for their sale is made.

true

When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties.