0multiple-choice questions

0MULTIPLE-CHOICE QUESTIONS

10. Goods that are not in existence and not yet identified are called 0

a0. personal goods.

b0. real goods.

c0. future goods.

d0. unsatisfactory goods.

20. Mincer bought an electric saw from Brown’s Hardware Store. Because the saw needed minor adjustments, he left it with the dealer. Risk of loss passed to Mincer when he 0

a0. made the agreement.

b0. picked up the saw.

c0. felt that the saw was satisfactory.

d0. accepted the risk of loss.

30. Figmont, of Albany, New York, ordered fifty calculators from Mund Calculator Company, terms FOB Atlanta, Georgia. The calculators were damaged in transit from Atlanta to Albany. Who suffers the loss? 0

a0. Figmont.

b0. Figmont and Mund Calculator equally.

c0. Figmont suffers 25 percent, and Mund 75 percent.

d0. Mund Calculator.

40. Lannigan bought an onyx ring and left it with the jeweler to be sized. Before it was sized, Tanzer came into the store to purchase an onyx ring. Because Lannigan’s ring was the only onyx ring Tanzer liked, the jeweler sold it. Can Tanzer keep the ring? 0

a0. Yes. A merchant who has temporary possession of goods can transfer a valid title.

b0. Yes. A merchant who has temporary possession of goods can transfer a voidable title.

c0. No. A buyer obtains no better title to goods than the seller.

d0. No. A buyer with a voidable title cannot transfer a valid title.

50. Barnes went to Caines Furniture Store to buy a sofa. The store was sold out but agreed to call the factory and have one made up. This transaction is 0

a0. a present sale.

b0. void.

c0. a contract to sell.

d0. a sale of identified goods.

60. If the requirements of the bulk sales law under Article 6 of the UCC are not met, creditors may have the right to declare a bulk sale 0

a0. void.

b0. voidable.

c0. inadequate.

d0. performed.

70. Johnson bought a portable radio from Hughes without realizing that the radio was stolen. Johnson received 0

a0. a valid title.

b0. no title.

c0. a voidable title.

d0. an informal title.

80. A bill of sale is 0

a0. a storage document.

b0. used in a sale or return.

c0. written proof of ownership of goods.

d0. a document that shows a person is keeping goods beyond the approval date.

90. When he bought a new boat, Johnson was given the choice of delivery FOB shipping point or FOB destination. Of these terms, delivery FOB destination is to Johnson’s legal advantage because 0

a0. risk of loss passes to him when the boat is delivered to the carrier.

b0. shipping expenses are paid by the buyer on delivery.

c0. Johnson will not sustain a loss if the boat is damaged in transit.

d0. all losses caused by damage to the boat will fall on the carrier.

100. Kimball charged a lamp at the Ames Department Store and asked that it be delivered to her house on the next delivery run. The lamp was damaged while being loaded onto the company’s delivery truck. Which of the following statements best describes Kimball’s legal position? 0

a0. The risk of loss has not yet shifted to Kimball, so Ames must bear the loss of the lamp.

b0. The risk of loss shifted to Kimball at the moment the Ames employees were loading the lamp onto the truck, so Kimball must bear the loss.

c0. Kimball must accept delivery of the lamp even though it is damaged because she charged it.