77- The document of title or a __________ serves as the contract between the seller and the shipper as well as identifies who has title and control of the goods.

Multiple Choice

• a negotiable possessor's certificate
• a negotiable bill of contracts
• a negotiable bill of lading
• a negotiable title trading

78- Dale contracts to sell 600 tons of fishbone fertilizer to Bonnie FOB Seller's plant. Dale delivers the goods to a rail carrier, but on the way to Bonnie's, the train derails and the fertilizer is destroyed. If Bonnie sues Dale for the purchase price of the goods, Bonnie will most likely:

Multiple Choice

• win because the risk of loss passed to the buyer upon tender of the goods to the carrier.
• lose because Bonnie never accepted the goods.
• lose because the derailment frustrated the contract.
• win because the failure of transportation is an expected contingency in an FOB contract.

80- In Capshaw v. Hickman, 64 UCC Rep. 2d 543 (Ohio Ct. App. 2007), the case in the text, the court reversed the trial court's judgment because:

Multiple Choice

• the vehicle remained in Hickman's driveway, therefore, he had the risk of loss.
• the pleadings provided sufficient evidence for the court to find in favor of the defendants as a matter of law.
• the pleadings did not reveal the underlying reasons for leaving the car in the driveway until Capshaw's check cleared.
• once the check was tendered, Hickman no longer had the risk of loss.

82- In terms of types of collateral under the Uniform Commercial Code (UCC), __________ include bills of lading, dock warrants, dock receipts, and warehouse receipts.

Multiple Choice

• instruments
• documents of title
• accounts
• chattel paper

83- Hannah entered into an auto insurance contract with All-Faults Insurance Company (All-Faults). On the application, Hannah stated that she had never been in an accident. In truth, Hannah had been in three (3) accidents within the last two (2) years. As a result, this contract is __________.

Multiple Choice

• null ab initio
• voidable at All-Fault's election
• voidable at either Hannah's or All-Fault's election
• void

84- Under the Uniform Commercial Code, an injured party in a contract dispute cannot recover __________ damages.

Multiple Choice

• liquidated
• compensatory
• important
• punitive

87- Which of the following is correct regarding property insurance policies?

Multiple Choice

• They are less likely to provide coverage for flood-related losses than for lightning-related losses.
• They are more likely to provide coverage for losses resulting from friendly fires than for losses resulting from hostile fires.
• They do not provide coverage for losses resulting from fires that were intentionally caused by persons having no connection with the insured.
• Requisite insurable interest must generally exist at the time of the entering into the policy.

88- Which of the following statements about consequential damages is false?

Multiple Choice

• Any attempt to limit consequential damages for injury caused to a person by consumer goods is considered unconscionable per se.
• Liability for consequential damages resulting from a breach of contract may be limited by agreement.
• Liability for consequential damages resulting from a breach of contract may be excluded by agreement.
• If a limit as to consequential damages is found to be unconscionable, it will not be enforced.