Question 1

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Accepted Answer

A)   Void
B)   Voidable
C)   Good
D)   Substantiated
E)   ExcisedF) C) and D)
G) A) and D)

Question 2

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Accepted Answer

A) True 
 B)False

Question 3

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

Accepted Answer

A)   The purchaser gets good title.
B)   The purchaser gets voidable title.
C)   The purchaser gets void title.
D)   The purchaser gets reclaimable title.
E)   The purchaser gets good-faith title.F) A) and E)
G) C) and D)

Question 4

In an origin contract, when does title pass to the buyer?

Accepted Answer

A)   When money is transferred to the seller
B)   When the items are delivered to the buyer
C)   At the time and place of shipment
D)   One day after goods are identified to the contract
E)   When goods are identified to the contractF) C) and D)
G) A) and E)

Question 5

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Accepted Answer

A)   If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, reject the goods subject to the seller's curing the deficiency in the goods, or reject the goods if no cure is possible.
B)   If a seller does not provide goods as described in a contract, the buyer may reject the goods subject to the seller's curing the deficiency in the goods, but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible.
C)   If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages, but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible.
D)   If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods, but the buyer may not reject the goods subject to the seller's curing the deficiency.
E)   If a seller does not provide goods as described in a contract, the buyer may accept the nonconforming goods as is, or the buyer may reject the goods subject to the seller's curing the deficiency in the goods; but the buyer may not simply reject the goods.F) A) and E)
G) B) and E)

Exam 22: Title, Risk of Loss, and Insurable Interest

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Correct Answer
verified

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct Answer
verified

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

Correct Answer
verified

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Correct Answer
verified

In an origin contract, when does title pass to the buyer?

Correct Answer
verified

Exam 22: Title, Risk of Loss, and Insurable Interest

Which of the following types of title does a good-faith buyer hold when the seller transfers a void title?

Correct AnswerverifiedShow Answer

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind, the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Correct AnswerverifiedShow Answer

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

Correct AnswerverifiedShow Answer

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

Correct AnswerverifiedShow Answer

In an origin contract, when does title pass to the buyer?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified