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Chapter19 - Ch.19 Quiz Instructions Please read the...

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Ch.19 Quiz Instructions Please read the questions carefully. This assessment is worth 100 points. 1. In most states today, leases of goods are handled by Article 2A of the UCC. (5 points) True False 2. In mixed goods-services situations, courts determine whether the contract is for the sale of goods by determining whether the good or the service is the dominant part of the transaction. (5 points) True False 3. Sue, an olive oil supplier, contracts to see Bruce, a restaurant owner, all of his requirements for olive oil for a period of five years. No estimate of Bruce's requirements is made, but in the past Bruce has used approximately 250 16-ounce bottles of olive oil per year. Sue is obligated to supply Bruce with 250 16-ounce bottles per year. (5 points) True False 4. The importance of the terms FOB and FAS in contracts for the sale of goods is that they obligate the buyer to pay immediately upon delivery of the goods. (5 points) True False 5. A department store sells a TV set to Wilson, who pays with a bad check. Wilson immediately sells the TV to Davis for $500. Davis knew nothing about how Wilson acquired the TV from the store. Davis has good title to the TV and will prevail against the store if it sues Davis for the TV or its value. (5 points) True False 6. A, who resides in New York, contracts to buy goods from B, who does business in Chicago. The contract says that shipment is "FOB Chicago." This means, among other things, that the risk of loss rests with B until it delivers the goods to a carrier in Chicago. (5 points) True False
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