1. Which of the following would be considered as goods? A. company shares B. crops C. trade secrets D. money 2. Which of the following describes a mixed sale? A. a sale that involves two or more intangible goods B. a sale that involves the passing of title of goods from a seller to a buyer for a price C. a sale that involves the possession and use of named goods for a set D. a sale that involves the provision of a service and a good in the same transaction 3. The requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing. A. parol evidence rule B. open price term C. firm offer rule D. Statute of Frauds In a destination contract, when is the title to the goods considered to have passed to the buyer? A. when the buyer specifies a specific destination in the sales contract B. when the seller tenders delivery of the goods at the specified destination C. when the seller makes the shipping arrangements D. when the seller hands over the goods to the common carrier 5. In which of the following cases is a buyer in breach of a sales contract? A. if the buyer refuses to accept nonconforming goods B. if the buyer accepts noncorforming goods C. if the buyer refuses to accept conforming goods D. if the buyer asks replacements for defective goods10. 11 Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs watches. Steve entrusts his watch at Knells until 1t 1s repaired. The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch. According to the entrustment rule, what legal recourse does Steve have to reclaim the watch or collect damages? A Steve can sue Kevin for damages. B. Steve can sue Knell Watches for damages C. Steve can reclaim the watch from Jonathan. D. Steve cannot reclaim the watch but can sue Jonathan for damages. When is a delivery considered completed in a shipment contract? A when the buyer receives the shipment B. when the seller hands over the shipment to the carrier C. when the shipment reaches the destination that the buyer specified D. when the seller notifies the buyer of the shipment in transit Pollard entered into a sales contract to purchase a specific Picasso pamnting frem Jenson for $13 million. When Pollard tenders payment. Jenson refuses to sell the painting to the buyer. Which of the following legal rights to remedy can Pollard exercise to retrieve the Picasso painting from Jenson? right to cover . right to recover damages for nondelivery _ right to obtain specific performance right to cancel the contract Unwe is a rule which provides that an action for breach of any written or oral sales or lease contract must commence within four years after the cause of action accrues. Perfect tender rule . Specific performance decree . Replevin UCC statute of limitations 0w Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased. as well as other assurances is known as implied volatility . implied cause of action _ implied assertion implied warranty of merchantability oW A statement that negates express and implied warranties 1s known as a A warranty disclaimer B. limited warranty C. warranty infringement D. warranty of no interference 12. What type of transaction is covered under the Magnuson-Moss Warranty Act? A. consumer transactions B. commercial transactions C. industrial transactions D. governmental transactions 13. Kirsten just bought a car that had a one-year warranty stating that it covered cost of parts, but not labor. It also stated that the automobile warranty only covered the powertrain part of the automobile, and no other part. What kind of warranty did Kirsten's car have? A. full warranty B. limited warranty C. disclaimer warranty D. implied warranty of fitness for a particular purpose 14. A is a two-party negotiable instrument that is an unconditional written pledge by one party to pay money to another party. A. bill of exchange B. check C. certificate of deposit D. promissory note 15. A promise or order is only considered negotiable if A. the promise or order to pay is unconditional B. it states that the promise or order is subject to or governed by another writing C. the rights to the promise or order are stated in another writing D. an express condition to payment is mentioned 16. A(n) is type of instrument that is payable to anyone in physical possession of the instrument and presents it for payment when it is due. A. certificate of deposit B. order instrument C. bearer instrument D. check 17. Which of the following makes negotiable instruments transferable to a third party? A. an insurance B. an indorsement C. a bill of exchange D. a trade acceptance18. Which of the following is true of a bearer paper? A. both indorsement and delivery is required for it to be negotiable B. only indorsement is necessary for it to be negotiable C. only delivery is necessary for it to be negotiable D. a payee must be specified in the paper 19. A person who takes a negotiable instrument for value, in good faith, and without notice that it is defective or overdue is referred to as a(n) A. holder B. holder in due course C. unqualified indorser D. assignee 20. Liability on a negotiable instrument that is imposed on a party only when the party primarily liable on the instrument defaults and fails to pay the instrument when due is referred to as A. secondary liability B. unqualified liability C. fringe liability D. warranty liability 21. Stanley, who owes Milton money, indorses a draft to him with the term "without recourse." The instrument later is dishonored. What liability does Stanley have on the instrument? A. He has no liabilities on the instrument. B. He has to pay Milton in case the instrument defaults. C. He has primary liabilities. D. He has secondary liabilities. 22. Martha draws a check payable to the order of Stella. Stella indorses the check to Karen. But Leslie steals the check from Karen, forges Karen's indorsement, and cashes the check at a liquor store. Who is liable to the check? A. the liquor store B. Martha C. Stella D. Leslie 23. Jennifer signs a promissory note to pay $2,500 to Clara. Clara negotiates the instrument and indorses it to Anthony. Anthony alters the note to make the payment amount $25,000 and negotiates the note to Nicholas. Nicholas indorses the note and negotiates it to Mack. Nicholas and Mack are both unaware of the alteration done by Anthony. If Mack presents the note to Jennifer for payment, how much, if anything is Jennifer obligated to pay? A. $25,000 B. $22,500 C. $2,500 ) Jennifero U Jennifer signs a promissory note to pay $2.500 to Clara. Clara negotiates the instrument and indorses it to Anthony. Anthony alters the note to make the payment amount $25.000 and negotiates the note to Nicholas. Nicholas indorses the note and negotiates 1t to Mack Nicholas and Mack are both unaware of the alteration done by Anthony. If Mack presents the note to Jennifer for payment. how much. 1f anything 1s Jennifer obligated to pay? A $25.000 B. $22.500 C. 52,500 D. Jennifer is not obliged to pay Mack Which of the following 1s implied when a bank certifies a check? A The bank agrees to accept the check when it is presented for payment. B. The bank cashes the check only if the holder himself presents it for payment. C. The bank withholds payment on the check until the drawer authorizes payment D. The bank holds the check as guarantee for repayment of a loan taken by a customer. A check that has been outstanding for more than is considered stale. A six months B. one year C. three months D. nine months