Ch21-TB1-WBL-10e

Ch21-TB1-WBL-10e - Chapter20 TheFormationof...

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Chapter 21 Title, Risk, and Insurable Interest N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Under the UCC, title determines all of the rights and remedies of the par- ties to a sales contract. ANSWER: F PAGE: 410 TYPE: = 2. If a sale involves crops that are to be harvested within twelve months, iden- tification takes place when the crops are planted or begin to grow. ANSWER: T PAGE: 410 TYPE: = 3. In contracts involving a sale of unborn animals to be born within twelve  months, identification takes place when the animals are conceived. ANSWER: T PAGE: 410 TYPE: = 4. When an owner holds fungible goods as a tenant in common, the owner can  pass title to the goods to a buyer only by physically separating the goods. ANSWER: F PAGE: 411 TYPE: N 207
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208 TEST BANK 1: UNIT FOUR: DOMESTIC AND INT’L SALES AND LEASE CONTRACTS 5. When a document of title is required, title passes to a buyer when and  where the document is delivered. ANSWER: T PAGE: 411 TYPE: =
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CHAPTER 21: TITLE, RISK, AND INSURABLE INTEREST 209 6. When no document of title is required and delivery is made without moving  the goods, title to identified goods passes when a contract for their sale is  made. ANSWER: T PAGE: 411 TYPE: = 7. A lessor with voidable title has the power to transfer a valid leasehold in- terest to a good faith lessee for value. ANSWER: T PAGE: 412 TYPE: = 8. When a lessee sells leased equipment to a third party, the lessor cannot,  under any circumstances, recover the equipment from the buyer. ANSWER: F PAGE: 412 TYPE: = 9. Under a  shipment  contract, the risk of loss passes to the buyer when the  seller places conforming goods in the possession of the carrier. ANSWER: T PAGE: 415 TYPE: = 10. Under a  destination  contract, the risk of loss passes to the buyer when the  goods are duly delivered to the carrier. ANSWER: F PAGE: 415 TYPE: = 11. A warehousing company that normally issues documents of title for goods it  receives is a bailee. ANSWER: T PAGE: 417 TYPE: = 12. If a seller is a merchant, and the goods are not to be moved, the risk of loss  passes to a buyer on tender of delivery. ANSWER: F PAGE: 417 TYPE: + 13. If a seller is a merchant, and the goods are not to be moved, the risk of loss  passes to a buyer when the buyer takes physical possession of the goods.
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Ch21-TB1-WBL-10e - Chapter20 TheFormationof...

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