Understanding Business and Personal Law

Chapter 13: Contracts for the Sale of Goods

Contracts for the Sale of Goods

1.
As long as the price of a product is less than $500,
A)any means available to accept the offer is considered reasonable.
B)the UCC rules do not apply.
C)a written contract is necessary in order for the contract to be enforceable.
D)an oral contract for the sale of goods is enforceable.
2.
In a shipment contract, the seller
A)has title to future goods.
B)assumes the responsibility for loss or damage to goods.
C)is responsible for seeing that the goods get to their destination.
D)is not responsible for seeing that the goods get to their destination.
3.
No one can have title to future goods.
A)TRUE
B)FALSE
4.
The law of sales is now part of the
A)Uniform Commercial Code (UCC).
B)Statute of Frauds.
C)dominant element doctrine.
D)Federal Trade Commission (FTC).
5.
A merchant is a business person who deals regularly or casually in the sale of goods.
A)TRUE
B)FALSE
6.
In an auction with reserve,
A)the goods cannot be withdrawn from bidding.
B)the auctioneer must sell the goods for the highest bid even if it is lower than the reserve amount.
C)the auctioneer doesn't have to sell the goods for the highest bid if it is lower than the reserve amount.
D)no bidding online is allowed because of the possibility of fraud.
7.
The term "f.o.b." means that the seller must pay the freight charges from the shipping point to the destination.
A)TRUE
B)FALSE
8.
If the buyer refuses to accept goods after ordering them, the seller may cancel the contract.
A)TRUE
B)FALSE
9.
Goods shipped under the terms of a destination contract
A)belong to the seller until they have been delivered to the destination.
B)are identified as future goods and no one has title during the shipping period.
C)are the responsibility of the shipping company.
D)belong to the buyer as soon as the goods are shipped.
10.
An example of a document of title is a bill of lading.
A)TRUE
B)FALSE
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