Sales MC Questions - Sales MC Questions 1. If goods have...

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Sales MC Questions 1. If goods have been delivered to a buyer pursuant to a sale or return contract, the A. Buyer may use the goods but not resell them. B. Title to the goods remains with the seller. C. Seller is liable for the expenses incurred by the buyer in returning the goods to the seller. D. Risk of loss for the goods passed to the buyer. 2. Diana Corp. entered into a contract with Baker Suppliers, Inc. to purchase a used word processor from Baker. Diana is engaged in the business of selling new and used word processors to the general public. The contract required Baker to ship the goods to Diana by common carrier pursuant to the following provision in the contract: “FOB Baker Suppliers, Inc. loading dock.” Assume that Diana refused to accept the word processor even though it was in all respects conforming to the contract and that the contract is otherwise silent. Under UCC Article 2, A. Baker must sue for the difference between the market value of the word processor and the contract price plus its incidental damages. B. Baker can successfully sue for specific performance and make Diana accept and pay for the word processor. C. Baker may resell the word processor to another buyer. D. Baker cannot successfully sue for consequential damages unless it attempts to resell the word processor. 3. To establish a cause of action based on strict liability in tort for personal injuries resulting from using a defective product, one of the elements the plaintiff must prove is that the seller (defendant) A. Was engaged in the business of selling the product. B. Failed to exercise due care. C. Was in privity of contract with the plaintiff. D. Defectively designed the product. 4. Under Article 2 of the UCC and the United Nations Convention for the International Sale of Goods (CISG), absent specific terms in an international sales shipment contract, when will risk of loss pass to the buyer? A. When the goods are tendered to the buyer. B. When the goods are identified to the contract. C. When the execution of the contract is concluded. D. When the goods are delivered to the first carrier for transmission to the buyer.
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5. Under the Sales Article of the UCC, when a contract for the sale of goods stipulates that the seller ship the goods by common carrier, “FOB purchaser’s loading dock,” which of the parties bears the risk of loss during shipment? A. The purchaser, because risk of loss passes when the goods are delivered to the carrier. B. The purchaser, because title to the goods passes at the time of shipment.
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Sales MC Questions - Sales MC Questions 1. If goods have...

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