Question 1(1 point)

A contract for sale differs from a contract to sell primarily in the point at which title passes.

a.True

b.False

Question 2(1 point)

In most cases of the sale of future goods, title remains with the seller until the goods are in a deliverable state.

a.True

b.False

Question 3(1 point)

Goods that physically exist and are owned by the seller at the time of sale are considered existing goods.

a.True

b.False

Question 4(1 point)

A contract for the sale of various, unrelated articles is considered a divisible contract.

a.True

b.False

Question 5(1 point)

A contract for labor and materials must always be in writing, regardless of the amount of money involved.

a.True

bFalse

Question 6(1 point)

When goods are sold on approval, the buyer has title during the trial period.

a.True

b.False

Question 7(1 point)

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.

a.True

b.False

Question 8(1 point)

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.

aTrue

b.False

Question 9(1 point)

The title to goods sold with right of return passes to the buyer at the time of sale.

a.True

b.False

Question 10(1 point)

A contract for special manufacture, construction, or design of goods is considered a contract for labor and materials.

a.True

b.False

Question 11(1 point)

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.

a.True

b.False

Question 12(1 point)

A common carrier is a firm in the business of transporting goods or personsby rail, truck, plane, or any other mode of transportation.

a.True

b.False

Question 13(1 point)

Title to goods shipped FOB shipping point remains with the seller until delivery is made to the buyer.

a.True

b.False

Question 14(1 point)

The buyer of goods that have been shipped FOB destination must bear the loss if the goods are lost or damaged in transit.

a.True

b.False

Question 15(10 points)

Match each of the numbered definitions with the correct term in the following list.

1

2

3

4

5

6

7

8

9

10

The right of an unpaid seller to stop goods in transit and order the carrier to hold them for the seller.

1

2

3

4

5

6

7

8

9

10

A state in which a person is unable to pay his or her debts.

1

2

3

4

5

6

7

8

9

10

A contract for sale that gives the buyer the title to goods and the opportunity of returning them to the seller at a later time.

1

2

3

4

5

6

7

8

9

10

A sales agreement whereby the seller retains title until the buyer pays for the goods.

1

2

3

4

5

6

7

8

9

10

A contract for the sale of goods of special design, construction, or manufacture.

1

2

3

4

5

6

7

8

9

10

A time limit after which legal remedies are no longer possible.

1

2

3

4

5

6

7

8

9

10

A sales agreement whereby the seller retains title and the buyer can return the goods.

1

2

3

4

5

6

7

8

9

10

An agreement for the sale of future goods.

1

2

3

4

5

6

7

8

9

10

An amount used in auction sales that specifies the lowest acceptable bid.

1

2

3

4

5

6

7

8

9

10

Ownership of goods.

1.conditional sales contract

2.contract for labor and materials

3.contract to sell

4.insolvency

5.reserve amount

6.sale on approval

7.sale or return

8.title

9.statute of limitations

10.stoppage in transit