Business Law (Chapters 17 & 18)

Move To... This element is a more accessible alternative to..

Business Law (Chapters 17 & 18)

Question 1

2 / 2 pts
According to the UCC, a sale is:

a payment for goods.

a negotiated transaction.
Correct!

the passing of title from the seller to the buyer for a price.

a void transaction.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 2

2 / 2 pts
A contract for labor and materials to be enforceable, even though it involves $500 or more:
Correct!

need not always be in writing.

must be entered by parties owning a business.

must be certified by notary.

should always be in writing.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 3

2 / 2 pts
There is a possibility of expensive pieces of property being sold at auction for a pittance simply because no one offered a higher bid. This possibility occurs only at an auction:

with reserve.
Correct!

without reserve.

without advertisements.

with advertisements.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 4

2 / 2 pts
FOB is the abbreviated form of:
Correct!

free on board.

freedom on bail.

freight on board.

freight on bail.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 5

2 / 2 pts
A sales contract for goods of special design, construction, or manufacture is a contract for labor and materials.
Correct!

True

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 6

2 / 2 pts
In an entire and divisible sales contract, if all the components are interdependent and are included in the same order, an entire contract payment for the contract is required before the whole order is filled.

True
Correct!

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 7

2 / 2 pts
Goods that physically exist and are owned by the seller at the time of sale are considered:

profitable goods.

accessible goods.

scarce goods.
Correct!

existing goods.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 8

2 / 2 pts
A contract for sale with the right of return gives the buyer the opportunity to return them to the seller at a later time, but does not give the buyer title.

True
Correct!

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 9

2 / 2 pts
A legally enforceable agreement that has as a purpose the immediate transfer of title to personal property in return for consideration is a contract for sale.
Correct!

True

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 10

2 / 2 pts

Title to goods shipped free on board destination passes before the goods are delivered to the buyer.

True
Correct!

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 11

2 / 2 pts
Implied warranty of fitness for a particular purpose is sometimes referred to as fitness of purpose.
Correct!

True

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 12

2 / 2 pts
The UCC provision of good title conveyance means the seller promises all of the following, EXCEPT:

the seller is the real owner of the goods offered for sale.

the seller has the right to sell the goods.
Correct!

the seller will give a written warranty of the goods.

there are no claims or liens of any kind against the goods that might later cause the seller to lose title to someone else who might claim ownership or interest.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 13

2 / 2 pts
In an effort to limit the effect of express warranties, some sellers put specific limitations in the warranty called disclaimers.
Correct!

True

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 14

2 / 2 pts
An express warranty that is made by the seller to the buyer and becomes part of the basis of the agreement creates a(n) _________that the goods will be as promised.

contingent contract

specialty contract

implicit warranty
Correct!

explicit warranty

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 15

2 / 2 pts
The Magnuson-Moss Warranty Act applies only when written warranties are made voluntarily on consumer products that cost more than $500.

True
Correct!

False

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 16

2 / 2 pts
A(n) ____________warranty is a guarantee suggested or inferred from known facts and circumstances.

executed
Correct!

implied

expressed

contingent

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 17

2 / 2 pts
At times, a manufacturer or seller issues statements limiting a warranty to provide less protection than the law requires. Such statements do not have the force of law, and the manufacturer or seller is still responsible for breach of:

indemnity.

good faith.
Correct!

warranty.

contingency.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 18

2 / 2 pts
A definite promise by the seller that the goods will have certain characteristics is a(n):

surety bond.

limited warranty.

implied warranty.
Correct!

express warranty.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 19

2 / 2 pts
Lemon laws vary greatly from state to state, and may not necessarily cover:
Correct!

leased products.

a barter system.

an exchange of goods.

services.

Move To… This element is a more accessible alternative to drag & drop reordering.
Question 20

2 / 2 pts
Disclaimers of the warranty of fitness for a particular purpose must be:

notarized and available electronically.

unstamped, however displayed.

oral and not be conspicuous.
Correct!

in writing and must be conspicuous.
Question 1

2 / 2 pts
A legally enforceable agreement that has as a purpose the immediate transfer of title to personal property in return for consideration is a contract for sale.
Correct!

True

False

Question 2

2 / 2 pts
A contract for labor and materials to be enforceable, even though it involves $500 or more:

must be certified by notary.

must be entered by parties owning a business.

should always be in writing.
Correct!

need not always be in writing.

Question 3

2 / 2 pts
FOB is the abbreviated form of:
Correct!

free on board.

freight on bail.

freedom on bail.

freight on board.

Question 4

2 / 2 pts
There is a possibility of expensive pieces of property being sold at auction for a pittance simply because no one offered a higher bid. This possibility occurs only at an auction:
Correct!

without reserve.

without advertisements.

with reserve.

with advertisements.

Question 5

2 / 2 pts
A contract of selling merchandise with the condition that title will remain with the seller until the purchase price has been paid is a:
Correct!

conditional sales contract.

provisional purchase.

qualified sales contract.

restrictive purchase contract.

Question 6

2 / 2 pts
At an auction sale, the seller is the owner of the goods and the buyer is the party:

abstaining from negotiation.
Correct!

making the offer.

conducting the transaction.

giving the opinion.

Question 7

2 / 2 pts
If a buyer refuses to accept delivery of goods, the seller can store the goods for the buyer and sue to recover the sales price if the goods are not readily resalable to another customer.
Correct!

True

False

Question 8

2 / 2 pts
In an entire and divisible sales contract, if all the components are interdependent and are included in the same order, an entire contract payment for the contract is required before the whole order is filled.

True
Correct!

False

Question 9

2 / 2 pts
Goods that physically exist and are owned by the seller at the time of sale are considered:

profitable goods.

accessible goods.
Correct!

existing goods.

scarce goods.

Question 10

2 / 2 pts

Title to goods shipped free on board destination passes before the goods are delivered to the buyer.

True
Correct!

False

Question 11

2 / 2 pts
The Magnuson-Moss Warranty Act applies only when written warranties are made voluntarily on consumer products that cost more than $500.

True
Correct!

False

Question 12

2 / 2 pts
A(n) ____________warranty is a guarantee suggested or inferred from known facts and circumstances.
Correct!

implied

contingent

expressed

executed

Question 13

2 / 2 pts
A definite promise by the seller that the goods will have certain characteristics is a(n):

limited warranty.
Correct!

express warranty.

surety bond.

implied warranty.

Question 14

0 / 2 pts
The UCC provision of good title conveyance means the seller promises all of the following, EXCEPT:

there are no claims or liens of any kind against the goods that might later cause the seller to lose title to someone else who might claim ownership or interest.
You Answered

the seller is the real owner of the goods offered for sale.

the seller has the right to sell the goods.
Correct Answer

the seller will give a written warranty of the goods.

Question 15

2 / 2 pts
Implied warranty of fitness for a particular purpose is sometimes referred to as fitness of purpose.
Correct!

True

False

Question 16

2 / 2 pts
In an effort to limit the effect of express warranties, some sellers put specific limitations in the warranty called disclaimers.
Correct!

True

False

Question 17

2 / 2 pts
At times, a manufacturer or seller issues statements limiting a warranty to provide less protection than the law requires. Such statements do not have the force of law, and the manufacturer or seller is still responsible for breach of:
Correct!

warranty.

contingency.

good faith.

indemnity.

Question 18

2 / 2 pts
Sales talk, or puffing, has the effect of a warranty.

True
Correct!

False

Question 19

2 / 2 pts
Disclaimers of the warranty of fitness for a particular purpose must be:

oral and not be conspicuous.

notarized and available electronically.
Correct!

in writing and must be conspicuous.

unstamped, however displayed.

Question 20

2 / 2 pts
A rule that prevents a court from considering oral statements that are inconsistent with the written document is known as the:

rule of alibi.

generis rule.
Correct!

parol evidence rule.

rule of natural justice.
Question 1

2 / 2 pts
A legally enforceable agreement that has as a purpose the immediate transfer of title to personal property in return for consideration is a contract for sale.
Correct!

True

False

Question 2

2 / 2 pts
A sales contract for goods of special design, construction, or manufacture is a contract for labor and materials.
Correct!

True

False

Question 3

2 / 2 pts

Title to goods shipped free on board destination passes before the goods are delivered to the buyer.

True
Correct!

False

Question 4

2 / 2 pts
A contract for sale with the right of return gives the buyer the opportunity to return them to the seller at a later time, but does not give the buyer title.

True
Correct!

False

Question 5

2 / 2 pts
A contract for labor and materials to be enforceable, even though it involves $500 or more:
Correct!

need not always be in writing.

must be entered by parties owning a business.

should always be in writing.

must be certified by notary.

Question 6

2 / 2 pts
Before the hammer falls, a bidder __________________.

may never retract the bid.
Correct!

may retract the bid at any time.

does not have a valid offer.

may retract the bid only within five seconds of the bid.

Question 7

2 / 2 pts
The UCC provides that, in the absence of negligence or fraud, legal action to remedy a breach of sales contract must be started within ________from the breach.

five years
Correct!

four years

eight years

two years

Question 8

2 / 2 pts
Goods that physically exist and are owned by the seller at the time of sale are considered:

accessible goods.
Correct!

existing goods.

scarce goods.

profitable goods.

Question 9

2 / 2 pts
In an entire and divisible sales contract, if all the components are interdependent and are included in the same order, an entire contract payment for the contract is required before the whole order is filled.

True
Correct!

False

Question 10

2 / 2 pts
When a contract provides for the sale of goods subject to the buyer’s approval, the transaction is a sale on return.

True
Correct!

False

Question 11

2 / 2 pts
A buyer cannot refuse delivery of goods even if the goods are not the same as described by the seller or do not conform to the sample or model used by the seller to effect the sale.

True
Correct!

False

Question 12

2 / 2 pts
Disclaimers of the warranty of fitness for a particular purpose must be:

notarized and available electronically.
Correct!

in writing and must be conspicuous.

oral and not be conspicuous.

unstamped, however displayed.

Question 13

2 / 2 pts
The Magnuson-Moss Warranty Act applies only when written warranties are made voluntarily on consumer products that cost more than $500.

True
Correct!

False

Question 14

2 / 2 pts
If a seller, at the time of making a contract, knows or has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller’s skill or judgment in selecting or furnishing suitable goods, there is an implied warranty of:

merchantability.
Correct!

fitness of purpose.

good faith.

reputation.

Question 15

2 / 2 pts
At times, a manufacturer or seller issues statements limiting a warranty to provide less protection than the law requires. Such statements do not have the force of law, and the manufacturer or seller is still responsible for breach of:

contingency.
Correct!

warranty.

good faith.

indemnity.

Question 16

2 / 2 pts
Sales talk, or puffing, has the effect of a warranty.

True
Correct!

False

Question 17

2 / 2 pts
The UCC provision of good title conveyance means the seller promises all of the following, EXCEPT:

there are no claims or liens of any kind against the goods that might later cause the seller to lose title to someone else who might claim ownership or interest.

the seller has the right to sell the goods.
Correct!

the seller will give a written warranty of the goods.

the seller is the real owner of the goods offered for sale.

Question 18

2 / 2 pts
The Magnuson-Moss Warranty Act relating to warranties addresses many different kinds of abuses to:
Correct!

consumers.

manufacturers.

agents.

sellers.

Question 19

2 / 2 pts
A definite promise by the seller that the goods will have certain characteristics is a(n):
Correct!

express warranty.

implied warranty.

surety bond.

limited warranty.

Question 20

2 / 2 pts
A(n) ____________warranty is a guarantee suggested or inferred from known facts and circumstances.

contingent

expressed

executed
Correct!

implied

Comments

comments