This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Chapter 21 Title, Risk, and Insurable I nterest MULTIPLE CHOICE QUESTIONS A1. Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties rights and obligations with respect to the loss depend on the concept of a. physical possession. b. product liability. c. risk of loss. d. title. B1. EZ Equipment Corporation leases six forklifts to Faulty Refining Company, but as the forklifts are delivered, they are lost in an explosion. Under the UCC, the parties rights and obligations with respect to the loss depend on the concept of a. physical possession. b. product liability. c. risk of loss. d. title. A2. Office Equipment Leasing, Inc. (OEL), agrees to lease five computer workstations to Product Promotion Corporation (PPC). Before any interest in the workstations can pass from OEL to PPC, they must be a. in existence and identified as the goods in the contract. b. in existence only. c. identified as the specific goods designated in the contract only. d. none of the choices. B2. A specific grade of corn that fills Dean and Ethels silo is fungible. This means that the corn is a. alike naturally or by agreement or trade usage. b. fundamentally different. c. fundamentally edible. A3. Alaskan salmon that fill the hold of Bill and Carlas fishing boat are fungible if the salmon are a. alike naturally or by agreement or trade usage. b. fundamentally different. c. fun, good, and edible. d. liable to deteriorate over time. B3. Rita orders 1,000 cases of 1/4-inch nuts from Steel Parts Companys 10,000-case lot. Steel Parts separates 1,000 cases from the lot. Title and risk of loss a. remain with Steel Parts until Rita acknowledges tender of delivery. b. remain with Steel Parts until Rita accepts 1,000 cases. c. shift to Rita after she accepts the nuts and inspects them for defects. d. shift to Rita when Steel Parts separates the cases. A4. Kip, a representative for Little Shipping Company, delivers a bill of lading to Meg, the owner of Normal Warehouse. A bill of lading is a. an invoice for payment for loading and carting. b. an order to ship goods by carrier to a certain destination. c. a receipt for goods signed by a carrier. d. a receipt issued by a warehouser for goods in a warehouse. B4. XL Electronics orders thirty hard drives from Yang Computers, Inc. The hard drives are stored in City Warehouse. Under the terms of the order, Yang must give XL a warehouse receipt for the goods, which XL will then pick up. Title to the goods passes to XL when a. City Warehouse stores the goods. b. XL orders the goods. c. XL picks up the goods. d. Yang gives XL a warehouse receipt for the goods.... View Full Document

End of Preview

Sign up now to access the rest of the document