QUESTION 6

1. If goods are sold under a negotiable warehouse receipt, when does risk of loss pass to the buyer?

A)When the buyer pays for the goods

B)When the buyer takes possession of the goods

C)When the goods are tendered to the buyer

D)When the warehouse receipt is tendered to the buyer

QUESTION 7

1. Which of the following is required to create express warranty?

A)The term "guarantee" must be used.

B)The term "warrant" must be used.

C)The guarantee must be in writing.

D)A statement of fact by the seller can create express warranty.

QUESTION 8

1. Sue bought a painting from Neda, who had inherited it and was not in the business of selling art. Sue gave Neda a check and Neda tendered delivery at the same time. Sue asked if she could pick up the painting later in the day. Through no fault of Neda's, the painting was stolen before Sue returned. What happens to the risk of loss?

A) It passed to Sue on Neda's tender of delivery.

B It would not pass to Sue until her check cleared.

C It remained with Neda because she was the seller.

D It remained with Neda because Sue had not yet taken possession of the painting