Chapter 13-15 textbook questions (12-14)

Rare coins, even though currency, can be considered goods under the UCC. True or False?

True

Intellectual property, such as a patent or a copyright, is not considered a good under the UCC.

True or False?

True

A(n) _____ delivery occurs when there is no actual transfer of possession of the goods, but the recipient has the power to control them, as intended by the parties involved

Constructive

Contracts to sell are not governed by the UCC’s law of sales. True or False?

False

Which of the following would not be considered goods under the UCC’s law of sales?

• (a) passenger plane

• (b) computer

• (c) six acres of land

• (d) All of the above are goods under the UCC

(C) Six acres of land

Can a court refuse to enforce an entire contract that it finds to be unconscionable?

Yes or No?

Yes

Generally, oral contracts are unenforceable in court. True or False?

True

Under the Statute of Frauds, sales of goods valued at ______ or more need to be evidenced by a writing to be enforceable in court

$500

If a buyer resells the goods, the UCC treats the buyer’s action as an acceptance.

True or False?

True

Do both parties have to sign the writing to satisfy the Statute of Frauds?

Yes or No?

No

If a party admits to agreeing to the terms of an oral contract during legal proceedings, the contract becomes enforceable against him or her.

True or False?

True

Individuals involved in sales transactions are either classified as casual sellers or ____ by the law.

Merchants

The buyer of stolen goods receives good title if they did not know the goods were stolen.

True or False?

False

If an owner of goods is induced by fraud to sell the goods, the transfer of title is ? by the seller.

• (a) valid

• (b) voidable

• (c) void

(B) Voidable

If the seller is to tender (Give) the goods at the place of sale, title passes at the time and place where the sales contract is made. True or False?

True

Ownership of fungible goods can be transferred in a sale without the goods being identified.

True or False?

False

The transfer of the risk of loss from seller to buyer always occurs when title transfers.

True or False?

False

If a buyer properly rejects faulty goods, the risk of loss stays with the seller until the defects are corrected.

True or False?

True

An insurable interest is acquired by the seller when the goods are identified to the contract.

True or False?

True

The seller is required to notify all of its creditors of an upcoming bulk transfer.

True or False?

False

The buyer does not have the right to inspect the goods in which of the following sales

situations?

• (a) cash-and-carry

• (b) auction

• (c) COD

• (d) The buyer can inspect the goods in all of the above situations.

(C) COD

Legally, a person buying goods for her or his business is not a “consumer.”

True or False?

True

If you took part in a chain letter would you have committed a crime? Yes or No?

Yes

Local governments do not have any consumer protection laws. True or False?

False

The elements of a lottery are _____, chance, and consideration.

• (a) price

• (b) money

• (c) luck

• (d) none of the above

(D) none of the above

Which of the following is regulated by the

CPSC?

• (a) drugs

• (b) firearms

• (c) toys

• (d) cosmetics

(C) Toys

The part of the free market system that best serves the consumer is

• (a) government regulation

• (b) informed consumer

• (c) competition

(C) Competition

Consumers have three days to cancel home solicitation sales. True or False?

True

A warranty that obligates the seller to repair or replace the defective product with only a labor cost to the buyer is still a full warranty.

True or False?

False

Strict liability is a tort cause of action.

True or False?

False

The warranty of _____ is implied against merchants of food products to be sure those products are not adulterated.

Merchantability

An express warranty may be given orally and still be legally effective. True or False?

True

Caveat emptor is Latin for

• (a) let the buyer beware

• (b) let the seller beware

• (c) let the ruler beware

(A) Let the buyer beware