Fred has 100 tons of stone in a warehouse barney

14. Fred has 100 tons of stone in a warehouse. Barney agrees to purchase the stone from Fred.
The contract states that Barney will pick up the stone directly from the warehouse. Fred
delivers a warehouse receipt for the 100 tons of stone to Barney. Before Barney is able to
pick up the stone, a tornado sweeps through and destroys the stone. Who has the risk of loss?
a. Fred has the risk of loss because Barney did not pick the stone yet.
b. The warehouse has the risk of loss because Barney did not pick the stone yet.
c. The risk of loss was passed to Barney when he received the warehouse receipt.
d. Fred, the warehouse, and Barney are equally responsible for the risk of loss.
15. Delapaz Motors receives 10 motorcycles from a manufacturer on a sale or return basis.
Delapaz pays $5,000 for each vehicle. Delapaz sells six motorcycles within a reasonable
time. Two of the remaining motorcycles are damaged from a fire accident. Which of the
following is true in this case?
16. Blue Rorschach, Inc. has an immediate requirement for laptops with bionic sensor features. It
contracts with Zenzo Computers and entrusts it with the delivery of such laptops. However,
the delivered laptops lacked the bionic sensors that Blue Rorschach desired. Blue Rorschach
immediately returns these laptops to Zenzo Computers. Which of the following rights to
remedy has Blue Rorschach, Inc. exercised in this scenario?

BUS 214 Exam
(Parts 3-4)
17. Anthony buys an electric stove from a home appliance shop that provides him with a
complete 48-month warranty. The shop guarantees that the stove will be repaired or replaced
for free during this period. This is an example of a(n) ________.
4
18. Kirsten just bought a car that had a one-year warranty stating that it covered cost of parts, but
not labor. It also stated that the automobile warranty only covered the powertrain part of the
automobile, and no other part. What kind of warranty did Kirsten's car have?
a. full warranty
b. limited warranty
c. warranty disclaimer
d. implied warranty of fitness for a particular purpose