BUL 3310 Exam 2 Study Guide FSU- Test
Questions & Answers
A minor is held to the same duty of care as an adult when Correct Ans-Driving a car
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for
value (GFP). Under the Uniform Commercial Code, Buyer took _________ title from Kevin, and
transferred _____________ title to the GFP Correct Ans-Voidable; Good
Bilateral mistake of material fact court may Correct Ans-Grant relief
Unilateral mistake of material fact court will NOT Correct Ans-Grant relief
Misrepresentation Correct Ans-Contract is voidable if party has been induced or injured by
other party's misrepresentation
Silence of Fraud is only counted when... Correct Ans-- Fiduciary relationship
- Duty based on justice, equity, and fair dealing
- Previous statement must be corrected
Scienter Correct Ans-Someone who does things knowingly
,Justifiable Reliance Correct Ans-Knowing the fraudulent facts and then speaking later on
does not count as fraud. Party must be fully justified to claim the other party commited fraud
John bought a dishwasher from Local Appliance Store. What type of law governs the contract
between John and Local? Correct Ans-UCC
Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store
delivered the computer, connected up the various devices, and transferred Lenny's files from his
old computer. Would this transaction constitute a sale of goods under Article2? Correct Ans-
Yes, in this transaction the sale of goods "predominates"
Sale on Approval Correct Ans-Good are delivered for use
Sale or Return Correct Ans-Goods delivered for resale
Former Case Correct Ans-Risk of theft or destruction borne by seller until buyer accepts the
goods
Latter Case Correct Ans-Risk is borne by buyer
Free on Board (FOB) Place of Shipment Correct Ans-Requires seller to deliver goods to a
shipper for delivery to a buyer
, FOB Place of Destination Correct Ans-Requires seller to accomplish to accomplish delivery
of the goods to a buyer, seller bears risk and expense of shipping
FOB Vehicle Correct Ans-Seller must load good onto vehicle at his expense
Free Alongside (FAS) Correct Ans-Vehicle at a named port requires seller to deposit goods
alongside the vessel in a usual manner
American Products, a Little Rock company, has a contract to send 150 dozen widgets to a
customer in Bristol England aboard the container ship Pride of New Orleans. The contract
requires American Products to deliver the widgets to the ship's dock and to put them into the
hands of the dock master. American Products' liability ends when the dock master takes
possession of the widgets. The contract between American Products and customer would read
Correct Ans-FAS/Pride of New Orleans
CIF (cost, insurance, freight) Correct Ans-Includes cost of goods, insurance, and shipping
If delivery is _____, inspection cannot be made before payment Correct Ans-COD
The buyer attains the right to insure the goods once Correct Ans-The goods are identified to
the contract
The document issued by a storage facility acknowledging that goods have been accepted for
storage is a ______ Correct Ans-Warehouse Receipt
Questions & Answers
A minor is held to the same duty of care as an adult when Correct Ans-Driving a car
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for
value (GFP). Under the Uniform Commercial Code, Buyer took _________ title from Kevin, and
transferred _____________ title to the GFP Correct Ans-Voidable; Good
Bilateral mistake of material fact court may Correct Ans-Grant relief
Unilateral mistake of material fact court will NOT Correct Ans-Grant relief
Misrepresentation Correct Ans-Contract is voidable if party has been induced or injured by
other party's misrepresentation
Silence of Fraud is only counted when... Correct Ans-- Fiduciary relationship
- Duty based on justice, equity, and fair dealing
- Previous statement must be corrected
Scienter Correct Ans-Someone who does things knowingly
,Justifiable Reliance Correct Ans-Knowing the fraudulent facts and then speaking later on
does not count as fraud. Party must be fully justified to claim the other party commited fraud
John bought a dishwasher from Local Appliance Store. What type of law governs the contract
between John and Local? Correct Ans-UCC
Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store
delivered the computer, connected up the various devices, and transferred Lenny's files from his
old computer. Would this transaction constitute a sale of goods under Article2? Correct Ans-
Yes, in this transaction the sale of goods "predominates"
Sale on Approval Correct Ans-Good are delivered for use
Sale or Return Correct Ans-Goods delivered for resale
Former Case Correct Ans-Risk of theft or destruction borne by seller until buyer accepts the
goods
Latter Case Correct Ans-Risk is borne by buyer
Free on Board (FOB) Place of Shipment Correct Ans-Requires seller to deliver goods to a
shipper for delivery to a buyer
, FOB Place of Destination Correct Ans-Requires seller to accomplish to accomplish delivery
of the goods to a buyer, seller bears risk and expense of shipping
FOB Vehicle Correct Ans-Seller must load good onto vehicle at his expense
Free Alongside (FAS) Correct Ans-Vehicle at a named port requires seller to deposit goods
alongside the vessel in a usual manner
American Products, a Little Rock company, has a contract to send 150 dozen widgets to a
customer in Bristol England aboard the container ship Pride of New Orleans. The contract
requires American Products to deliver the widgets to the ship's dock and to put them into the
hands of the dock master. American Products' liability ends when the dock master takes
possession of the widgets. The contract between American Products and customer would read
Correct Ans-FAS/Pride of New Orleans
CIF (cost, insurance, freight) Correct Ans-Includes cost of goods, insurance, and shipping
If delivery is _____, inspection cannot be made before payment Correct Ans-COD
The buyer attains the right to insure the goods once Correct Ans-The goods are identified to
the contract
The document issued by a storage facility acknowledging that goods have been accepted for
storage is a ______ Correct Ans-Warehouse Receipt
