When a buyer agrees to buy goods held by a bailee

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Business Law: Principles for Today's Commercial Environment
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Chapter 23 / Exercise 3
Business Law: Principles for Today's Commercial Environment
Jennings/Twomey
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14. When a buyer agrees to buy goods held by a bailee, unless otherwise explicitly agreed, the risk of loss passes to the buyer when the price is paid. PAGE: 418 TYPE: =
15. A contract in which a buyer takes goods primarily for resale, with a right to return any goods that fail to sell, is a sale on approval. PAGE: 418 TYPE: N
16. Under the UCC, a consignment is a sale on approval. PAGE: 418 TYPE: N
17. A contract in which a buyer is allowed to take goods on a trial basis is a sale or return. PAGE: 419 TYPE: N
18. In general, a buyer’s breach of a contract causes the risk of loss to shift to the buyer. PAGE: 420 TYPE: =
19. A buyer has an insurable interest in identified goods. PAGE: 420 TYPE: =
20. Before a seller can have an insurable interest in goods, the goods must be identified to a contract. PAGE: 421 TYPE: N
MULTIPLE CHOICE QUESTIONS 1. Rita orders 1,000 cases of 1/4-inch nuts from Steel Parts Company’s 10,000-case lot. Steel Parts separates 1,000 cases from the lot. Title and risk of loss
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Business Law: Principles for Today's Commercial Environment
The document you are viewing contains questions related to this textbook.
Chapter 23 / Exercise 3
Business Law: Principles for Today's Commercial Environment
Jennings/Twomey
Expert Verified
CHAPTER 21:  TITLE, RISK, AND INSURABLE INTEREST           213 c. shift to Rita after she accepts the nuts and inspects them for defects. d. shift to Rita when Steel Parts separates the cases. ANSWER: D PAGE: 411 TYPE: =
214           TEST BANK 2—UNIT FOUR:  DOMESTIC AND INT’L SALES AND LEASE CONTRACTS 2. Best Foods Company agrees to sell Consolidated Grocery Stores, Inc., 1,000 cases of beans. Before any interest in specific cases of beans can pass from Best to Consolidated, the beans must be a. in existence only. b. identified as the specific goods designated in the contract only. c. in existence and identified as the goods in the contract. d. none of the above. ANSWER: C PAGE: 411 TYPE: =
3. Lou’s Bicycle Store contracts to buy fifty bicycles from Mountain Bikes, Inc. Unless the contract states otherwise, it is assumed that this is PAGE: 411 TYPE: +
4. Beta Electronics orders thirty hard drives from Alpha Computers, Inc. The hard drives are stored in City Warehouse. Under the terms of the order, Alpha must give Beta a warehouse receipt for the goods, which Beta will then pick up. Title to the goods passes to Beta when PAGE: 411 TYPE: =

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