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BLAW 5392 Exam 1 (Part 1)

63 Questions  I  By [email protected]
BLAW 5392 Exam 1 (Part 1)

  
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1.  8.002 Under the Sales Article of the UCC, and unless otherwise agreed to, the seller's obligation to the buyer is to...
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2.  8.035 On May 2, Lace Corp., an appliance wholesaler, offered to sell appliances worth $3,000.00 to Parco, Inc., a hosehold appliances retailer.  The offer was signed by Lace's president, and provided that it would not be withdrawn before June 1.  It also included the shipping terms: "FOB--Parco's warehouse."  on May 29, Parco mailed an acceptance of Lace's offer.  Lace received the acceptance on June 2. If Lace inadvertently ships the wrong appliances to Parco and Parco rejects them two days after receipt, title to the goods will...
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3.  8.034 On May 2, Lace Corp., an appliance wholesaler, offered to sell appliances worth $3,000.00 to Parco, Inc., a hosehold appliances retailer.  The offer was signed by Lace's president, and provided that it would not be withdrawn before June 1.  It also included the shipping terms: "FOB--Parco's warehouse."  on May 29, Parco mailed an acceptance of Lace's offer.  Lace received the acceptance on June 2. Risk of loss for the appliances will pass to Parco when they are...
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4.  8.038 On Monday, Wolfe paid Aston Co., a furniture retailer, $500.00 for a table.  On Thursday, Aston notified Wolfe that the table was ready to be picked up.  on Saturday, while Aston was still in possession of the table, it was destroyed in a fire.  Who bears the risk of loss of the table?
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5.  8.036 Cey Corp. entered into a contract to sell parts to Deck, Ltd.  The contract provided that the goods would be shipped "FOB Cey's warehouse."  Cey shipped parts different from those specified in the contract.  Deck rejected the parts.  A few hours after Deck informed Cey that the parts were rejected, they were destroyed by a fire in Deck's warehouse.  Cey believed that the parts were conforming to the contract.  Which of the following statements is correct?
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6.  8.052 Marco Auto, Inc. made many untrue statements in the course of inducing Rockford to purchase a used auto for $3,500.00.  The car in question turned out to have some serious faults.  Which of the following untrue statements made by Marco should Rockford use in seeking recovery from Marco for breach of warranty?
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7.  8.004 If a contract for the sale of goods includes a C. & F. shipping term and the seller has fulfilled all of its obligations, the
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8.  8.048 Which of the following factors result(s) in an express warranty with respect to a sale of goods? I.  The seller's description of the goods is part of the basis of the bargain. II.  The seller selects goods knowing the buyer's intended use.
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9.  8.018 Grill deals in the repair and sale of new and used clocks.  West brought a clock to Grill to be repaired.  One of Grill's clerks mistakenly sold West's clock to Hone, another customer.  Under the Sales Article of teh UCC, will West win a suit against Hone for the return of the clock?
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10.  8.025 Under the Sales Article of the UCC, when a contract for the sale of goods stipulates that the seller ship the goods by common carrier "FOB purchaser's loading dock," which of the parties bears the risk of loss during shipment.
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11.  8.024 Under the Sales Article of the UCC, which of the following statements is correct regarding risk of loss and title to the goods under a sale or return contract?
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12.  8.047 Under the Sales Article of the UCC, most goods sold by merchants are covered by certain warranties.  An example of an express warranty would be a warranty of...
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13.  8.049 An important fator in determining if an express warranty has been created is whether the...
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14.  8.056  Which of the following is necessary in order for the warranty of merchantability to arise where there has been a sale of goods? I. The seller must be a merchant with respect to the goods of that kind. II.  The warranty must be in writing. III.  The buyer must have relied on the seller's skill or judgment in selecting the goods.
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15.  8.023 Mammoth Furniture, Inc. is in the retail furniture business and has stores located in principal cities in the United States.  Its designers created a unique coffee table.  After obtaining prices and schedules, Mammoth ordered 2,000 tables to be made to its design and specification for sale as a part of its annual spring sales promotion campaign.  Which of the following represents the earliest time Mammoth will have an insurable interest in the tables.
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16.  8.053 In a contract for teh sale of goods, express warranties by the seller are created by any
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17.  8.026 Under the Sales Article of the UCC and the United Nations Convention for the International Sale of Goods (CISG), absent specific terms in an international sales shipment contract, when will risk of loss pass to the buyer?
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18.  8.032 Bond purchased a painting from Wool, who is not in the busines of selling art.  Wool tendered delivery of the painting after receiving payment in frull from Bond.  bond informed Wool that Bond would be unable to take possession of the painting until later in the day. Thieves stold the painting before Bond returned.  The risk of loss...
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19.  8.037 Which of the following factors is most important in deciding who bears the risk of loss between merchants when goods are destroyed during shipment?
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20.  8.020 A claim has been made by Donnegal to certain goods in your client's possession.  Donnegal will be entitled to the goods if it can be shown that Variance, the party from whom your client purchased the goods, obtained them by...
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21.  8.017 Which of the following statements is correct with regard to an auction of goods?
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22.  8.009 Suggs Company agreed to sell certain goods to Barr Corporation pursuant to a written contract.  NO shipment or delivery date was specified in the contract.  Based on these facts...
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23.  8.010 Martin, a wholesale distributer, made a contract for the purchase of 10,000 gallons of gasoline from the Wilberforce Oil Company.  The price was to be determined in accordance with the refinery price as of the close of business on the delivery date.  Credit terms were net/30 after delivery.  Under these circumstances which of the following statements is true?
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24.  8.050 Which of the following factors will be most important in determining whether an express warranty has been created concerning goods sold?
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25.  8.055  Which of the following conditions must be met for an implied warranty of fitness for a particular purpose to arise in connection with a sale of goods? I.  The warranty must be in writing. II.  The seller must know that the buyer was relying on the seller in selecting the goods.
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26.  8.058 Wally, a CPA and a neighbor of Rita's, offered to sell Rita his power chain saw for $400.00.  Rita stated that she knew nothing about chain saws but would buy the saw if it were capable of cutting down the trees in her backyard, which had an average diameter of five feet.  Wally assured Rita that the saw "would do the job."  Relying on Wally's assurance, Rita purchased the saw.  Wally has created a warranty that
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27.  8.014 Mara Oil, Inc. had a contract with Gotham Apartments to supply it with its fuel oil needs for the year, approximately 10,000 gallons.  The price was fixed at ten cents above the price per gallon that Mara paid for its oil.  Due to an exceptionally cold winter, Mara found that its capacity to fulfill this contract was doubtful.  Therefore, it contracted Sands Oil Company and offered to assign the contract to it for $100.00.  Sands agreed.  Which of the following is correct as a result of the above assignment?
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28.  8.051 Target Company, Inc. ordered a generator from Maximum Voltage Corporation.  A dispute has arisen over the effect of a provision in the specifications that the generateor have a 5,000 kilowatt capacity.  THe specifications were attached to the contract and were incorporated by reference in the main body of the contract.  The generateor did NOT have this capacity but instead had a maximum capacity of 4,800 kilowatts.  The contract had a disclaimer clause which effectively negated both the implied warranties of quality.  Target is seeking to avoid the contracted based upon breach of warranty and Maximum is relying on its disclaimer.  Which of the following is a correct statement?
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29.  8.040 Sand Corp. sold and delivered a photocopier to Barr for use in Barr's business.  According to their agreement, Barr may return the copier within 30 days.  During the 30-day period, if Barr has NOT returned the copier or indicated acceptance of it, which of the following statements is correct with respect to the risk of loss and title?
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30.  8.008 In connect with a contract for the sale of goods, the term CIF means that the price includes...
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31.  8.059  The UCC implies a warranty of merchantability to protect buyers of goods.  To be subject to this warranty the goods need NOT be
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32.  8.013 Bass Electric Co. has entered an agreement to buy its actual requirements of copper wiriting for six months from the Seymour Metal Wire Company and Seymour Metal has agreed to sell all the copper wiring Bass will require for six months.  The agreement between the two companies is...
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33.  8.043 Bell by telegram to Major Corp. ordered 10,000 yards of fabric, first quality, 50% wool and 50% cotton.  THe shipping terms were FOB Bell's factory in Akron, Ohio.  Major accepted the order and packed the fabric for shipment.  In the process it discovered that one-half of the fabric packed had been commingled with fabric which was 30% wool and 70% cotton.  Since Major did not have any additional 50% wool fabric, it decided to send the shipment to Bell as an accomodation.  The goods were shipped and later the same day Major wired Bell its apology informing Bell of the facts and indicating that the 5,000 yards of 30% wool would be priced at $2.00 per yard less.  The carrier delivering the goods was destroyed on the way to Akron.  Under the circumstances, who bears the risk of loss?
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34.  8.046 Duval Liquor Wholesalers, Inc. stored its inventory of goods in the Reliable Warehouse Company.  Duval's shipments would arrive by truck and be deposited with Reliable who would in turn issue negotiable warehouse receipts to Duval.  Duval would resell the liquor by transferring the negotiable warehouse receipts to the buyer who was responsible for transporting it to his place of business.  In one of the sales of liquor to a retailer, the liquor was badly damaged and a question has arisen as to who has the risk of loss, Duval or the retailer.  If the contract is silent on this point, when did the risk of loss pass to the retailer?
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35.  8.019 Baker fraudulently induced Able to sell Baker a painting for $200.00.  Subsequently, Baker sold the painting for $10,000.00 to Gold, a good faith purchaser.  Able is entitled to...
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36.  8.039 If goods have been delivered to a buyer pursuant to a sale or return contract, the...
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37.  8.061 On May 2, Handy Hardware sent Ram Industries a signed purchase order that stated, in part, as follows:  "Ship for May 8 delivery 300 Model A-X socket sets at current dealer price.  Terms 2/10/net 30."  Ram received Handy's purchase order on May 4.  On May 5, Ram discovered that it had only 200 Model A-X socket sets and 100 Model W-Z socket sets in stock.  Ram shipped the model A-X and Model W-Z sets to Handy without any explanation concerning the shipment.  The socket sets were received by Handy on May 8. Which of the following statements concerning the shipment is correct?
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38.  8.016 Under the Sales Article of the UCC, in an auction announced in explicit terms to be without reserve, when may an auctioneer withdraw the goods put up for sale? I.  At any time until the auctioneer announces completion of the sale. II.  If NO bid is made within a reasonable time.
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39.  8.028 Under the Sales Article of the UCC, in an FOB place of shipment contract, the risk of loss passes to the buyer when the goods...
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40.  8.022 Pulse Corp. maintained a warehouse where it stored its manufactured goods.  Pulse received an order from Star.  Shortly after Pulse identified the goods to be shipped to Star, but before moving them to the loading dock, a fire destroyed the warehouse and its contents.  With respect to the goods, which of the following statements is correct?
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41.  8.057 Under the UCC Sales Article, which of the following warranties requires the seller to be a merchant with respect to the goods being sold in order for the warranty to apply? I. Implied warranty of fitness for a particular purpose. II. Implied warranty of merchantability.
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42.  8.054 Under the Sales Article of the UCC, which of the following statements is correct regarding the warranty of merchantability arising when there has been a sale of goods by a merchant seller?
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43.  8.003 Smith contracted in writing to sell Peters a used personal computer for $600.00.  The contract did not specifically address the time for payment, place of delivery, or Peters' right to inspect the computer.  Which of the following statements is correct?
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44.  8.027 Under the Sales Article of the UCC, which of the following factors is most important in determining who bears the risk of loss in a sale of goods contract?
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45.  8.007 In connection with risk and expense associated with the delivery of goods to a destination under a sales contract, the term FOB the place of destination means that...
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46.  8.041 Which of the following is most important in determining who bears the risk of loss in a sale of goods contract?
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47.  8.005 Wilson Corporation entered into a contract to sell goods to Marvin who has a place of business in the same town as Wilson.  The contract was clear with respect to price and quantity, but failed to designate the place of delivery.  Which of the following statements is correct?
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48.  8.062  On May 2, Handy Hardware sent Ram Industries a signed purchase order that stated, in part, as follows:  "Ship for May 8 delivery 300 Model A-X socket sets at current dealer price.  Terms 2/10/net 30."  Ram received Handy's purchase order on May 4.  On May 5, Ram discovered that it had only 200 Model A-X socket sets and 100 Model W-Z socket sets in stock.  Ram shipped the model A-X and Model W-Z sets to Handy without any explanation concerning the shipment.  The socket sets were received by Handy on May 8. Assuming a contract exists between Handy and Ram, which of the following implied warranties would result? I. Implied warranty of merchantability. II. Implied warranty of fitness for a particular purpose. III. Implied warranty of title.
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49.  8.033 On May 2, Lace Corp., an appliance wholesaler, offered to sell appliances worth $3,000.00 to Parco, Inc., a hosehold appliances retailer.  The offer was signed by Lace's president, and provided that it would not be withdrawn before June 1.  It also included the shipping terms: "FOB--Parco's warehouse."  on May 29, Parco mailed an acceptance of Lace's offer.  Lace received the acceptance on June 2. Which of the following statements is correct if Lace sent Parco a telegram revoking its offer, and Parco received the telegram on may 25?
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50.  8.015 Major Steel Manufacturing, Inc. signed a contract on October 2, 1978, with the Hard Coal & Coke Company for its annual supply of coal for three years commencing on June 1, 1979, at a price to be determined by taking the average monthly retail price per ton, less a ten cent per ton quantity discount. On March 15, 1979, Major discovered that it could readily fulfill is requirements elsewhere at a much greater discount.  Major is seeking to avoid its obligation.  Which of the following is correct?
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51.  8.031 Which of the following statements applies to a sale on approval under the UCC Sales Article?
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52.  8.001 Under the Sales Article of teh UCC, which of the following statements is correct regarding a seller's obligation under a FOB destination contract?
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53.  8.011 A sheep rancher agreed, in writing, to sell all the wool shorn during the shearing season to a weaver.  The contract failed to establish the price and a minimum quantity of wool.  After the shearing season, the rancher refused to deliver the wool.  The weaver sued the rancher for breach of contract.  Under the Sales Article of the UCC, will the weaver win?
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54.  8.045 Buyer ordered goods from Seller.  The contract required Seller to deliver them FOB Buyer's place of business.  Buyer inspected the goods, discovered they failed to conform to the contract, and rightfully rejected them.  In the event of loss of the oods, which of the following is a correct statement?
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55.  8.044 A dispute has arisen between two merchants over the question of who has the risk of loss in a given sales transaction.  The contract does not specifically cover the point.  The goods were shipped to the buyer who rightfully rejected them.  Which of the following factors will be the most important factor in resolving their dispute?
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56.  8.042 Bell Co. owned 20 engines which it deposited in a public warehouse on May 5, receiving a negotiable warehouse receipt in its name.  Bell sold the engines to Spark Corp.  On which of the following dates did the risk of loss transfer from Bell to Spark?
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57.  8.021 Under the Sales Article of the UCC, unless a contract provides otherwise, before title to goods can pass from a seller to a buyer, the goods must be...
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58.  8.030 Quick Corp. agreed to purchase 200 typewriters from Union Suppliers, Inc. Union is a wholesaler of appliances and Quick is an appliance retailer.  The contract required Union to ship the typewriters to Quick by common carrier, "FOB Union Suppliers, Inc. Loading Dock."  Which of the parties bears the risk of loss during shipment?
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59.  8.006 In connection with risk and expense associated with the delivery of goods to a carrier for shipment under a sales contract, the term FOB the place of shipment means that...
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60.  8.029 Under the Sales Article of the UCC, which of the following events will result in the risk of loss passing from a merchant seller to a buyer? I. Tender of the goods at the seller's place of business. II. Use of the seller's truck to deliver the goods.
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61.  8.060 Under the Sales Article of the UCC, the warranty of title
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62.  8.063 With respect to the sale of goods, the warranty of title
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63.  8.012 Mayker, Inc. and Oylco contracted to have Oylco be the exclusive provider of Mayker's fuel oil for three months.  The stated price was subject to increases of up to a total of 10% if the market price increased.  The market price rose 25% and Mayker tripled its normal order.  Oylco seeks to avoid performance.  Oylco's best argument in support of its position is that...
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