Question 1

What does the term "FOB" when used as a shipping term represent?

Accepted Answer

A)   Fee on Board
B)   Fee on Basis
C)   Freedom of Board
D)   Free on Board
E)   Free of BasisF) A) and B)
G) C) and D)

Question 2

Which of the following is true regarding the status of a common carrier in relation to the seller?

Accepted Answer

A)   The common carrier is an agent of the seller.
B)   The common carrier is an employee of the seller.
C)   The common carrier is both an employee and an agent of the seller.
D)   The common carrier is a true carrier of the seller.
E)   The common carrier is an independent contractor.F) A) and E)
G) A) and D)

Question 3

Which of the following was the result in Landshire Food Service Inc.,v.Coghill,the case in the text in which the defendant,Coghill,sold his Rolls Royce to Bellman in return for a forged cashier's check and an innocent purchaser for value,Hyken,meanwhile purchased the car from Bellman before the fraud was discovered?

Accepted Answer

A)   Coghill was entitled to return of the vehicle because the contract with Bellman was void.
B)   Coghill was entitled to return of the vehicle because the contract with Bellman was voidable by Coghill.
C)   Hyken was entitled to the vehicle because a person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.
D)   Hyken was entitled to the vehicle because although a person who procures title through fraud receives a void title, the person guilty of fraud may transfer good title to a bona fide purchaser.
E)   The car was ordered sold with Coghill and Hyken to split the proceeds.F) B) and C)
G) A) and E)

Question 4

In a conditional sales contract,a contract is a ______ when the seller and buyer agree that the buyer may return the goods at a later time.

Accepted Answer

A)   Sale-on-approval contract
B)   Sale-or-return contract
C)   Condition-or-sale contract
D)   Return-or-purchase
E)   Return-or-saleF) A) and B)
G) A) and C)

Question 5

If a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding the risk of loss at the time the goods were damaged?

Accepted Answer

A)   The risk of loss was with the furniture store.
B)   The risk of loss was with Ralph.
C)   The risk of loss was split 50-50 between Ralph and the furniture store.
D)   The risk of loss was with Ralph only if the driver is determined to be an agent of the furniture store.
E)   The risk of loss was with the furniture store only if the driver is determined to be an agent of the furniture store.F) A) and C)
G) A) and B)

Question 7

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Accepted Answer

A)   Void
B)   Voidable
C)   Good
D)   Substantiated
E)   ExcisedF) B) and D)
G) A) and B)

Question 8

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following occurs when goods are delivered to a buyer via a common carrier,such as a trucking line?

Accepted Answer

A)   A simple delivery contract
B)   A common-carrier delivery contract
C)   A goods-in-bailment contract
D)   An average delivery contract
E)   A delivery-carrier contractF) A) and B)
G) A) and C)

Question 10

Which of the following is true regarding types of common-carrier delivery contracts?

Accepted Answer

A)   Common-carrier delivery contracts include origin and shipment contracts, but not destination or transfer contracts.
B)   Common-carrier delivery contracts include destination contracts, but not origin, transfer, or shipment contracts.
C)   Common-carrier delivery contracts include transfer contracts but not origin, shipment, or destination contracts.
D)   Common-carrier delivery contracts include origin and transfer contracts, but not destination contracts.
E)   Common-carrier delivery contracts include origin and destination contracts, but not transfer contracts.F) A) and B)
G) B) and C)

Question 11

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Accepted Answer

A)   The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
B)   The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
C)   The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
D)   The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
E)   The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.F) C) and E)
G) A) and B)

Question 12

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding Connie's rights to the car?

Accepted Answer

A)   Connie can keep the car only if the repair shop voluntarily agrees to pay Robby the fair market value of the car.
B)   Connie can keep the car without paying anyone anything only if the repair shop is bankrupt or insolvent.
C)   Connie can keep the car without paying anyone anything extra.
D)   Connie must give the car to Robby.
E)   Connie must return the car to the repair shop.F) B) and E)
G) B) and D)

Question 14

Tender of delivery is the moment goods are picked up by the buyer.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Accepted Answer

A)   A goods-in-bailment contract
B)   A simple delivery contract
C)   An average delivery contract
D)   A conditional sales contract
E)   A goods-in-transfer contractF) C) and D)
G) All of the above

Question 16

Which of the following occurs in a CIF agreement?

Accepted Answer

A)   Risk of loss occurs when goods are identified to the contract.
B)   Risk of loss occurs when the goods are delivered to the buyer.
C)   Risk of loss remains with the seller for 5 days after the sale.
D)   Risk of loss remains with the seller for 5 days before the sale.
E)   The seller puts the goods in possession of a carrier before the risk passes to the buyer.F) B) and C)
G) C) and D)

Question 17

What does the term "FAS" when used as a shipping term represent?

Accepted Answer

A)   Found as Seen
B)   Fee as Selected
C)   Freedom Alongside
D)   Free Alongside
E)   Found as SelectedF) C) and E)
G) A) and B)

Question 18

Which of the following are types of conditional contracts?

Accepted Answer

A)   Sale-on-approval contracts, but not sale-or-return or condition-or-sale contracts
B)   Sale-or-return contracts and condition-or-sale contracts, but not sale-on-approval contracts
C)   Condition-or-sale contracts and sale-on-approval contracts, but not sale-or-return contracts
D)   Sale-on-approval contracts, sale-or-return contracts, and condition-or-sale contracts
E)   Sale-on-approval contracts and sale-or-return contracts, but not condition-or-sale contractsF) A) and B)
G) A) and E)

Question 19

What kind of title did Betty have?

Accepted Answer

A)   Good
B)   Void
C)   Voidable
D)   Absolute
E)   IllegalF) C) and E)
G) A) and C)

Question 20

With goods in bailment,when is an insurable interest created?

Accepted Answer

A)   Only when either party has title to the goods
B)   When either party has title or a risk of loss, but not under any other circumstances
C)   When either party has title, risk of loss, or other economic interest attached to the goods
D)   Two days after either party has title to the goods
E)   Never - there is no such thing as an insurable interest in a goods-in-bailment contractF) A) and D)
G) A) and B)

Exam 22: Title,Risk of Loss,and Insurable Interest

What does the term "FAS" when used as a shipping term represent?

Correct Answer
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Which of the following is true regarding Connie's rights to the car?

Correct Answer
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Correct Answer
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If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct Answer
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Which of the following occurs when goods are delivered to a buyer via a common carrier,such as a trucking line?

Correct Answer
verified

Tender of delivery is the moment goods are picked up by the buyer.

Correct Answer
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Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Correct Answer
verified

Which of the following is true regarding types of common-carrier delivery contracts?

Correct Answer
verified

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Correct Answer
verified

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Correct Answer
verified

With goods in bailment,when is an insurable interest created?

Correct Answer
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In a conditional sales contract,a contract is a ______ when the seller and buyer agree that the buyer may return the goods at a later time.

Correct Answer
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Which of the following is true regarding the status of a common carrier in relation to the seller?

Correct Answer
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If a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Correct Answer
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What kind of title did Betty have?

Correct Answer
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Which of the following is true regarding the risk of loss at the time the goods were damaged?

Correct Answer
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Which of the following occurs in a CIF agreement?

Correct Answer
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What does the term "FOB" when used as a shipping term represent?

Correct Answer
verified

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Correct Answer
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Which of the following are types of conditional contracts?

Correct Answer
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Exam 22: Title,Risk of Loss,and Insurable Interest

What does the term "FAS" when used as a shipping term represent?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Connie's rights to the car?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct AnswerverifiedShow Answer

Which of the following occurs when goods are delivered to a buyer via a common carrier,such as a trucking line?

Correct AnswerverifiedShow Answer

Tender of delivery is the moment goods are picked up by the buyer.

Correct AnswerverifiedShow Answer

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Correct AnswerverifiedShow Answer

Which of the following is true regarding types of common-carrier delivery contracts?

Correct AnswerverifiedShow Answer

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

Correct AnswerverifiedShow Answer

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Correct AnswerverifiedShow Answer

With goods in bailment,when is an insurable interest created?

Correct AnswerverifiedShow Answer

In a conditional sales contract,a contract is a ______ when the seller and buyer agree that the buyer may return the goods at a later time.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the status of a common carrier in relation to the seller?

Correct AnswerverifiedShow Answer

If a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Correct AnswerverifiedShow Answer

What kind of title did Betty have?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the risk of loss at the time the goods were damaged?

Correct AnswerverifiedShow Answer

Which of the following occurs in a CIF agreement?

Correct AnswerverifiedShow Answer

What does the term "FOB" when used as a shipping term represent?

Correct AnswerverifiedShow Answer

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Correct AnswerverifiedShow Answer

Which of the following are types of conditional contracts?

Correct AnswerverifiedShow Answer

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