Indicate whether each of the following statements is true or false by writing T or F in the answer column.
1. Contracts for sale can be oral or written, express or implied. 1. ___________
2. A contract for sale differs from a contract to sell primarily in the point at which title passes. 2. ___________
3. In most cases of the sale of future goods, title remains with the seller until the goods are in a deliverable state. 3. ___________
4. Goods that physically exist and are owned by the seller at the time of sale are considered existing goods. 4. ___________
5. A contract for the sale of various, unrelated articles are considered a divisible contract.
5. ___________
6. A contract for labor and materials must always be in writing, regardless of the amount of money involved. 6. ___________
7. When goods are sold on approval, the buyer has title during the trial period.
7. ___________
8. The buyer of goods sold on approval can indicate his or her consent to keep the goods by retaining them for longer than the agreed time or a reasonable time. 8. ___________
9. A buyer whose goods are not delivered within a reasonable time has the right to “cover”— that is, to purchase substitute goods from another seller. 9. ___________
10. The title to goods sold with right of return passes to the buyer at the time of sale.
10. ___________
11. A contract for special manufacture, construction, or design of goods is considered a contract for labor and materials. 11. ___________
12. The notations in an auctioneer’s book of sales of more than $ 500 satisfies the requirements of the Uniform Commercial Code that such contracts be in writing to be enforceable. 12. ___________
13. A common carrier is a firm in the business of transporting goods or persons— by rail, truck, plane, or any other mode of transportation. 13. ___________
14. Title to goods shipped FOB shipping point remains with the seller until delivery is made to the buyer. 14. ___________
15. The buyer of goods that have been shipped FOB destination must bear the loss if the goods are lost or damaged in transit. 15. ___________