B-Law Test

ch22

Student: ___________________________________________________________________________

1. Good faith is generally relevant in determining whether someone with a void title can pass a good title. 
True    False

2. The rule originates in common law that when a seller transfers goods to a buyer, the buyer gets only voidable title if the buyer is a minor. 
True    False

3. If a shipment contract is vague or ambiguous on the issue, an origin contract will be presumed. 
True    False

4. If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business. 
True    False

5. Delivering a car to a merchant for repair cannot qualify as an entrustment. 
True    False

6. Identification of when the risk of loss attaches is important in regards to the right of indemnification. 
True    False

7. An insurable interest is the right to insure the goods against any risk exposure such as damage or destruction. 
True    False

8. Tender of delivery is the moment goods are picked up by the buyer. 
True    False

9. If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer, the parties have executed a common-carrier delivery contract. 
True    False

10. FOB and FAS are different terms with the same meaning. 
True    False

11. The UCC defines a _____ as the passing of title from the seller to the buyer for a price. 
A. Sale
B. Consignment
C. Lease
D. Title swap
E. Ownership

12. Which of the following is title that is acquired from someone who already owns the goods free and clear? 
A. Void title
B. Voidable title
C. Good title
D. Examined title
E. Substantiated title

13. Which of the following is held when someone unknowingly purchases stolen goods? 
A. Void title
B. Voidable title
C. Good title
D. Examined title
E. Substantiated title

14. Which of the following types of title does a good faith buyer hold when the seller transfers a void title? 
A. Void
B. Refusable
C. Good
D. Substantiated
E. Excised

15. What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value? 
A. The purchaser gets good title.
B. The purchaser gets voidable title.
C. The purchaser gets void title.
D. The purchaser gets reclaimable title.
E. The purchaser gets good-faith title.

16. Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind? 
A. The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
B. The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
C. The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
D. The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
E. The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

17. Which of the following is the right to insure goods against any risk exposure such as damage or destruction? 
A. An insurable interest
B. A compensable interest
C. A paid interest
D. A collateral interest
E. A valid interest

18. Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller's delivery? 
A. A voidable delivery contract
B. An average delivery contract
C. A simple delivery contract
D. A complex delivery contract
E. An acknowledged sale

19. Which of the following occurs when goods are delivered to a buyer via a common carrier, such as a trucking line? 
A. A simple delivery contract
B. A common-carrier delivery contract
C. A goods-in-bailment contract
D. An average delivery contract
E. A delivery-carrier contract

20. Which of the following occurs when purchased goods are in some kind of storage under the control of a third party, such as a warehouseman? 
A. A goods-in-bailment contract
B. A simple delivery contract
C. An average delivery contract
D. A conditional sales contract
E. A goods-in-transfer contract