Negotiable or nonnegotiable?

A note whose payment is subject to conditions stated on a document located elsewhere

An I.O.U.

A note payable in French francs

A note payable in a cash amount or equivalent value of five Microsoft shares of stock

A dated check with First day of the World Series in parentheticals following date

A thief who forges a checkbook owners signature on a check that had been torn out of the owners checkbook

1. If a California buyer and New York seller add a clause to their contract allocating risk of loss based on the temperature when such a loss may occur, this would generally be considered in conflict with the UCC and therefore unenforceable. T or F

2. An insurable interest in goods is limited to one person or one party at a time. T or F

3. On February 15, Mace Inc. contracted to sell 20 kegs of craft beer to Party Time Inc. at $80 per keg with delivery to be made on June 23. On June 1, Party Time expressly advised Mace that Party Time would not accept or pay for the kegs of beer. On June 2, Mace sold the 20 kegs of craft beer to another customer at the price of $70 per keg. Mace had stated to Party Time that Mace intended to resell the beer. Given these facts which of the following statements is generally correct?

a) Party Time Inc. could have revoked its previous repudiation of its contract with Mace Inc. at any time prior to June 23.

b) Party Time Inc. can successfully bring suit against Mace Inc. for breach of contract.

c) Mace can successfully bring suit against Party Time Inc. for the difference between the resale price and the contract price.

d) Mace could only resell the kegs of beer after June 23.

4. A party can have an insurable interest in goods even though he or she may not be in physical possession of those goods. T or F

5. A party can never be a holder in due course if accepting a commercial instrument from a thief who is not in rightful possession of a stolen check. T or F

6. UCC (sales law) does not generally apply to a sale of which of the following?

a) guitars

b) McDonald's French fries

c) a sale of land

d) a new car

7. Which of the following conditions must be met for an implied warranty of fitness for a particular purpose to arise in connection with a sale of goods?

I. The warranty must be in writing.

II. The seller must know that the buyer was relying on the seller in selecting the goods.

a) I only

b) II only

c) Both I and II

d) Neither I nor II