B-Law Test
B-Law Test
ch22Student: ___________________________________________________________________________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. SaleB. ConsignmentC. LeaseD. Title swapE. Ownership 12. Which of the following is title that is acquired from someone who already owns the goods free and clear? A. Void titleB. Voidable titleC. Good titleD. Examined titleE. Substantiated title 13. Which of the following is held when someone unknowingly purchases stolen goods? A. Void titleB. Voidable titleC. Good titleD. Examined titleE. Substantiated title
14. Which of the following types of title does a good faith buyer hold when the seller transfers a void title? A. VoidB. RefusableC. GoodD. SubstantiatedE. 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 interestB. A compensable interestC. A paid interestD. A collateral interestE. 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 sellers delivery? A. A voidable delivery contractB. An average delivery contractC. A simple delivery contractD. A complex delivery contractE. 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 contractB. A common-carrier delivery contractC. A goods-in-bailment contractD. An average delivery contractE. 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 contractB. A simple delivery contractC. An average delivery contractD. A conditional sales contractE. A goods-in-transfer contract