Blaw 5392 Exam 1 (Part 1)

63 Questions | Total Attempts: 282

SettingsSettingsSettings
Blaw 5392 Exam 1 (Part 1) - Quiz

Questions and Answers
  • 1. 
    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?
    • A. 

      The seller is required to arrange for the buyer to pick up the conforming goods at a specified destination.

    • B. 

      The seller is required to tender delivery of conforming goods at a specified destination.

    • C. 

      The seller is required to tender delivery of conforming goods at the buyer's place of business.

    • D. 

      The seller is required to tender delivery of conforming goods to a carrier who delivers to a destination specified by the buyer.

  • 2. 
    8.002 Under the Sales Article of the UCC, and unless otherwise agreed to, the seller's obligation to the buyer is to...
    • A. 

      Deliver the goods to the buyer's place of business.

    • B. 

      Hold conforming goods and give the buyer whatever notification is reasonably necessary to enable the buyer to take delivery.

    • C. 

      Deliver all goods called for in the contract to a common carrier.

    • D. 

      Set aside conforming goods for inspection by the buyer before delivery.

  • 3. 
    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?
    • A. 

      Smith is obligated to deliver the computer to Peters' home.

    • B. 

      Peters is entitled to inspect the computer before paying for it.

    • C. 

      Peters may NOT pay for the computer using a personal check unless Smith agrees.

    • D. 

      Smith is NOT entitled to payment until 30 days after Peters receives the computer.

  • 4. 
    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
    • A. 

      Title to the goods will pass to the buyer when the goods are received by the buyer at the place of destination.

    • B. 

      Risk of loss will pass to the buyer upon delivery of the goods to the carrier.

    • C. 

      Buyer retains the right to inspect the goods prior to making payment.

    • D. 

      Seller must obtain an insurance policy at its own expense for the buyer's benefit.

  • 5. 
    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?
    • A. 

      The contract is unenforceable because of indefiniteness.

    • B. 

      The place for delivery must be designated by the parties within five days or the contract is voidable.

    • C. 

      The seller's place of business is the proper place for delivery.

    • D. 

      The buyer's place of business is the proper place for delivery.

  • 6. 
    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...
    • A. 

      The seller bears the risk but NOT the expense.

    • B. 

      The buyer bears the risk but NOT the expense.

    • C. 

      The seller bears the risk and expense.

    • D. 

      The buyer bears the risk and the expense.

  • 7. 
    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...
    • A. 

      The seller bears the risk but NOT the expense.

    • B. 

      The buyer bears the risk but NOT the expense.

    • C. 

      The seller bears the risk and expense.

    • D. 

      The buyer bears the risk and the expense.

  • 8. 
    8.008 In connect with a contract for the sale of goods, the term CIF means that the price includes...
    • A. 

      The cost of the goods exclusive of insurance and freight.

    • B. 

      The cost of the goods plus freight but exclusive of insurance.

    • C. 

      The cost of the goods plus insurance but exclusive of freight.

    • D. 

      The cost of the goods, freight, and insurance.

  • 9. 
    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...
    • A. 

      The time for shipment is within a reasonable time.

    • B. 

      The time for shipment must be agreed upon.

    • C. 

      The time for shipment is within 3 months.

    • D. 

      The contract fails for indefiniteness.

  • 10. 
    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?
    • A. 

      If Martin pays upon delivery, he is entitled to a 2% discount.

    • B. 

      The contract being silent on the place of delivery, Martin has the right to expect delivery at his place of business.

    • C. 

      Although the price has some degree of uncertainty, the contract is enforceable.

    • D. 

      Because the goods involved are tangible, specific performance is a remedy available to Martin.

  • 11. 
    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?
    • A. 

      Yes, because this was an output contract.

    • B. 

      Yes, because both price and quantity terms were omitted.

    • C. 

      No, because quantity cannot be omitted for a contract to be enforceable.

    • D. 

      No, because the omission of price and quantity terms prevents the formation of a contract.

  • 12. 
    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...
    • A. 

      There was NO meeting of the minds.

    • B. 

      The contract was unconscionable.

    • C. 

      The quantity was NOT definite and certain enough.

    • D. 

      Mayker ordered amounts of oil unreasonably greater than its normal requirements.

  • 13. 
    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...
    • A. 

      Unenforceable because it is too indefinite.

    • B. 

      Unenforceable because it lacks mutuality of obligation.

    • C. 

      Unenforceable because of lack of consideration.

    • D. 

      Valid and enforceable.

  • 14. 
    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?
    • A. 

      The contract with Gotham was neither assignable nor delegable.

    • B. 

      Mara is now released from any further obligation to perform the Gotham contract.

    • C. 

      Mara has effectively assigned to Sands its rights and delegated its duties under the terms of the contract with Gotham.

    • D. 

      In the event Sands breached the contract with Gotham, Mara has NO liability.

  • 15. 
    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?
    • A. 

      The pricing term is too indefinite and uncertain hence there is NO contract.

    • B. 

      Since the amount of coal required is unknown at the time of the making of the contract, the contract is too indefinite and uncertain to be valid.

    • C. 

      Major is obligated to take its normal annual coal requirements from Hard or respond in damages.

    • D. 

      There is NO contract since Major could conceivably require NO coal during the years in question.

  • 16. 
    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.
    • A. 

      I only.

    • B. 

      II only.

    • C. 

      Either I and II.

    • D. 

      Neither I nor II.

  • 17. 
    8.017 Which of the following statements is correct with regard to an auction of goods?
    • A. 

      The auctioneer may withdraw the goods at any time prior to completion of the sale unless the goods are put up without reserve.

    • B. 

      A bidder may retract his bid before the completion of the sale only if the auction is without reserve.

    • C. 

      A bidder's retraction of his bid will revive the prior bid if the sale is with reserve.

    • D. 

      In a sale with reserve, a bid made while the hammer is falling automatically reopens the bidding.

  • 18. 
    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?
    • A. 

      No, because the clerk was NOT aware that the clock belonged to West.

    • B. 

      No, because Grill is a merchant to whom goods had been entrusted.

    • C. 

      Yes, because Grill could NOT convey good title to the clock.

    • D. 

      Yes, because the clerk was negligent in selling the clock.

  • 19. 
    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...
    • A. 

      Rescind the contract with Baker.

    • B. 

      Recover the painting from Gold.

    • C. 

      Recover damages from Baker.

    • D. 

      Rescind Baker's contract with Gold.

  • 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...
    • A. 

      Deceiving Donnegal as to his identity at the time of the purchase.

    • B. 

      Giving Donnegal his check which was later dishonored.

    • C. 

      Obtaining the goods from Donnegal by fraud, punishable as larceny under criminal law.

    • D. 

      Purchasing goods which had been previously stolen from Donnegal.

  • 21. 
    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...
    • A. 

      Tendered to the buyer.

    • B. 

      Identified to the contract.

    • C. 

      Accepted by the buyer.

    • D. 

      Paid for.

  • 22. 
    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?
    • A. 

      Pulse has title but NO insurable interest.

    • B. 

      Star has title and an insurable interest.

    • C. 

      Pulse has title and an insurable interest.

    • D. 

      Star has title but NO insurable interest.

  • 23. 
    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.
    • A. 

      Upon shipment of conforming goods by the seller.

    • B. 

      When the goods are marked or otherwise designated by the seller as the goods to which the contract refers.

    • C. 

      At the time the contract is made.

    • D. 

      At the time the goods are in Mammoth's position.

  • 24. 
    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?
    • A. 

      Title and risk of loss are shared equally between the buyer and the seller.

    • B. 

      Title remains with the seller until the buyer approves or accepts the goods, but risk of loss passes to the buyer immediately following delivery fo the goods to the buyer.

    • C. 

      Title and risk of loss remain with the seller until the buyer pays for the goods.

    • D. 

      Title and risk of loss rest with the buyer until the goods are returned to the seller.

  • 25. 
    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.
    • A. 

      The purchaser, because risk of loss passes when the goods are delivered to the carrier.

    • B. 

      The purchaser, because title to the goods passes at the time of shipment.

    • C. 

      The seller, because risk of loss passes only when the goods reach the purchaser's loading dock.

    • D. 

      The seller, because risk of loss remains with the seller until the goods are accepted by the purchaser.

Back to Top Back to top