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| 1 | |
Which is not a kind of title? |
| | A) | Good |
| | B) | Void |
| | C) | Voidable |
| | D) | Vacated |
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| 2 | |
A buyer receives only voidable title if which of the following occurs? |
| | A) | The buyer purchases from a non-merchant seller |
| | B) | The buyer is a minor |
| | C) | The buyer is a good-faith purchaser for value |
| | D) | The buyer gives consideration that is of considerably less value than the consideration given by the seller |
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| 3 | |
Of the following situations, when would the buyer not receive voidable title? |
| | A) | The buyer has deceived the seller regarding his/her true identity |
| | B) | The buyer is a good-faith purchaser for value |
| | C) | The buyer has written a bad check for the goods |
| | D) | The buyer and seller agreed that title would not pass until some later time |
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| 4 | |
If an owner __________ the possession of goods to a merchant who deals in goods of that kind, the merchant can transfer all rights in the goods to a buyer in the ordinary course of business. |
| | A) | Divests |
| | B) | Invests |
| | C) | Entrusts |
| | D) | Insures |
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| 5 | |
With a __________ contract, the buyer and seller typically execute an agreement, and the buyer leaves with the goods. |
| | A) | Simple delivery |
| | B) | Common-carrier delivery |
| | C) | Goods-in-bailment |
| | D) | Conditional sales |
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| 6 | |
If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer, the parties have executed a __________ contract. |
| | A) | Simple delivery |
| | B) | Common-carrier delivery |
| | C) | Goods-in-bailment |
| | D) | Conditional sales |
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| 7 | |
Goods in __________ are goods that are in some kind of storage (for example, in a warehouse on board a ship), so the seller cannot transfer physical possession of them; instead, the seller has one of three documents indicating ownership of the goods: a negotiable document of title, a nonnegotiable document of title, or a contract or other instrument showing ownership that is not a negotiable or nonnegotiable document of title. |
| | A) | Bailment |
| | B) | Trust |
| | C) | Security |
| | D) | Holding |
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| 8 | |
Conditional sales contracts are either __________ or __________ contracts. |
| | A) | Sale-on-execution; sale-on-demand |
| | B) | Sale-on-approval; sale-or-return |
| | C) | Sale-on-execution; sale-on-approval |
| | D) | Sale-on-demand; sale-or-return |
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| 9 | |
A contract is a __________ contract if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase. |
| | A) | Conditional sale |
| | B) | Reserved sale |
| | C) | Sale-on-approval |
| | D) | Sale-or-return |
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| 10 | |
A __________ contract occurs when the seller and buyer agree that the buyer may return the goods at a later time. |
| | A) | Conditional sale |
| | B) | Reserved sale |
| | C) | Sale-on-approval |
| | D) | Sale-or-return |
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