Business Law 20 -21

When a buyer breaches a contract, the risk of loss remains with the seller.

False

When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy.

False

Gas & Wood Stove Shop receives Hearthwarm-brand stoves from Independent Dealer, Inc., under a sale or return agreement. While the stoves are in Gas & Wood's possession, title is held by

Gas & Wood.

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable interest in the players as long as

Household Appliance retains title to the goods

Megan, an agent for a department store, orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale. There is no specific agreement in the sale contract indicating when title will pass to the department store. The title will pass to the department store when

Sal's Clothing Shop physically delivers the dresses to the department store.

Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

True

Under the UCC, an agreement modifying a contract needs no consideration to be binding.

True

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

True

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

True

Effortless Workouts, Inc., offers to sell a treadmill to Farouk and sends it to him on a trial basis. This is

a sale on approval.

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in

April, when the calves are conceived.

Title and risk of loss can pass to the buyer from the seller before the goods are identified to the contract.

False

Under a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier.

False

Under the UCC, a contract for a sale of goods that does not include the quantity will not fail for indefiniteness.

False

Over the course of a year, Suites & Sets Corporation sells household furnishings to customers to whom it extends credit. Suites & Sets orders the furnishings from The Storage Depot's warehouse, from which the items are shipped via common carrier to Suites & Sets customers. Article 2 of the UCC governs

all of the parties' sales of the goods.

La-Z Days Motels, Inc., and Beds R Us Corporation enter into a contract that does not specify the payment terms. Payment may be made in

any commercially normal or acceptable means.

Nature's Products, Inc., sends its standard order form to Omni Distribution Corporation to evidence a sale of packing materials. Omni responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless

any of the choices.

Refined Grains, Inc., is a Kansas-based firm that does business throughout the world. Refined Grains manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and agricultural products, and other goods. Refined Grains has had to deal with employee and customer theft. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for

commercial transactions for the sale of and payment for goods.

Great Gear, Inc., enters into a contract to sell sports clothing and equipment to Healthways Workout store, which in turn sells a pair of bike shorts to Ilene, a consumer. In comparison to standards that apply to consumers, the UCC imposes on merchants

special business standards.

Johan steals Krispin's car and sells it to Lemar. Krispin can recover the car from Lemar

under any circumstances.