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| 1 | |
Joe stole Adia's DVD player and sells it to Tom who resells it to Alice. Tom and Alice knew nothing about the theft. May Adia recover her DVD player? |
| | A) | No, since Alice is an innocent buyer. |
| | B) | Yes, since the DVD player does not qualify as a fungible good. |
| | C) | No, since stolen goods may only be recovered from the thief or the first person to buy from the thief. |
| | D) | Yes, since it was stolen. |
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| 2 | |
Gloria presents a false financial statement to Tom and persuades him to sell her goods on credit that she resells to her customers. May Tom recover the goods from Gloria's customers? |
| | A) | Yes, since Gloria had a void title. |
| | B) | No, since Gloria had voidable title |
| | C) | Yes, since Gloria engaged in theft by instrument. |
| | D) | No, since Tom sold the goods to a merchant. |
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| 3 | |
Zelda stored her fur coat with Coat Warehouse Co. who sold the fur coat to Yani, a customer. What rights does Zelda have against Coat Warehouse Co.? |
| | A) | None. |
| | B) | A suit for specific performance only. |
| | C) | A suit for monetary damages only. |
| | D) | A suit for both specific performance and for monetary damages. |
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| 4 | |
Inkem, living in Kansas City, contracts to sell goods to Javid who lives in Cedar Rapids. Delivery is to be f.o.b. Kansas City via Red Line freight Co. Inkem takes the goods to the Red Line terminal on Saturday afternoon, but is closed. Inkem stacks the cartons on Red Line's loading dock. On Sunday the goods are stolen from Red Line's loading dock. What party has the risk of loss? |
| | A) | Inkem, since he did not deliver the gods to the carrier. |
| | B) | Javid, since this was a shipment contract. |
| | C) | Inkem, since this was a destination contract. |
| | D) | Javid, since he assumed the risk of Inkem's actions. |
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| 5 | |
Madison, a St. Lousi seller, contracts to sell goods to Dolly, a Boston buyer, with delivery to be f.o.b. Boston. The goods arrive in Boston on May 1 and the carrier attempts to contact Dolly who has gone on vacation and does not return the carrier's May 1 voice mail message until May 7. When Dolly goes to the carrier's terminal on May 7, the goods cannot be found. What party has the risk of loss? |
| | A) | Madison since this was a shipment contract. |
| | B) | Madison since Dolly did not receive notice until May 7. |
| | C) | Dolly since a reasonable time had passed since the May 1 notice for her to pick up the goods. |
| | D) | Dolly since this was a shipment contract. |
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| 6 | |
Goods are shipped without specifying if the shipment is to be a shipment or a destination contract. What is the contract presumed to be? |
| | A) | destination contract |
| | B) | shipment contract |
| | C) | Evidence of trade usage will determine. |
| | D) | Neither, but the risk of loss remains on the seller until physically delivery to the buyer occurs. |
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| 7 | |
Title to fungible goods held in bulk transfers when _____. |
| | A) | an undivided store is sufficiently identified |
| | B) | the goods are physically separated from the bulk |
| | C) | the holder acknowledges the sale |
| | D) | the buyer agrees to accept title |
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| 8 | |
Charles gives Betty an ACE Warehouse receipt to goods that he has contracted to sell Betty. Charles has the goods stored in an ACE Warehouse. When does risk of loss transfer to Betty? |
| | A) | When Betty obtains physical possession of the goods. |
| | B) | When Charles tells Betty where the goods are located. |
| | C) | When Betty verifies that the goods are in the warehouse. |
| | D) | When Charles gives Betty the warehouse receipt. |
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| 9 | |
A buyer accepts a delivery of goods on May 1. Unpacking the goods on May 2 the buyer discovers that the goods do not conform to the contact and notifies the seller that acceptance is revoked. On May 3 while the goods are still in the buyer's possession the goods are destroyed by fire. Who has the risk of loss if the buyer has insurance coverage? |
| | A) | The buyer's insurance covers the loss. |
| | B) | The buyer since the goods had been accepted. |
| | C) | The seller since nonconforming goods were sent. |
| | D) | The seller since the buyer had revoked acceptance. |
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| 10 | |
Charles obtained goods from Helen to display in his shop with the understanding that goods that were unsold could be returned. When returning the goods some items had slight damage due to customers having picked them up to examine them. Is Charles obligated to pay Helen for this damage? |
| | A) | Yes, since the goods must be returned in the same condition as they were received. |
| | B) | No, since ordinary wear and tear is allowable. |
| | C) | Yes, since Charles assumed all risk of loss. |
| | D) | No, since Helen assumed all risk of loss. |
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