BUS 263 FINAL UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. In a dispute over a sale involving a skateboard, Greg
argues that as to this deal Hobby Shop, where Greg
bought the board, is a merchant. A court may determine
whether the shop is a merchant by assessing whether
Answer:
it holds itself out by occupation as having knowledge and skill unique to the
skateboard in the transaction.
Question:
2. Ferris is refinishing his kitchen floor and needs a floor
sander to complete the job. Ferris's neighbor Gina
suggests that he call Home Repair Rentals, Inc. Home
Repair leases Ferris a floor sander. In this transaction, the
lessor is
Answer:
Home Repair.
Question:
3. Dian, an agent for Expo Motors, Inc., writes a letter to
Flynn on November 1 stating that she will sell him a 2017
Subaru Outback for $25,000 between November 1 and
December 31. Dian's letter to Flynn is
Answer:
a merchant's firm offer.
Question:
4. Article 2 of the UCC governs
Answer:
contracts for the sale of goods.
Question:
5. Ed sells his car to Fran for $5,000, his bike to Gwen for
$600, his game player to Holly for $200, and three shares
of stock to Inez for $100. Article 2 of the UCC does not
apply to the sale of
Answer:
the patent.
,Question:
6. Refined Metals Company and Superior Fabrication, Inc.,
enter into a contract under which Refined agrees to
deliver a certain quantity of sheet metal to Superior each
month. The contract does not include a price term. In a
suit between the parties over the price, a court will
Answer:
determine a reasonable price.
Question:
7. Jack sells a grand piano to Kyle for $5,000 and a gold
ring to Lauren for $999. A writing is required to enforce
the sale of
Answer:
the piano and the gold ring.
Question:
8. Bert's Bagels, Inc., and other bakeries refer to a "baker's
dozen" as consisting of a collection of thirteen baked
goods. This is an example of
Answer:
usage of trade.
Question:
9. Lee pays Mobile Electronics $600 for a new phone.
Under the UCC, this is
Answer:
a sale.
Question:
10. Red Bev LLC contracts to buy two tons of strawberries
from Sweet Fruits, Inc. The contract states that Sweet
Fruits is required to ship the strawberries to Red Bev by
Truck Transport Inc. The contract is
Answer:
a shipment contract.
, Question:
11. In a sale of oranges from Citrus Grove Farms to Juice
Factory Inc. to be delivered after the harvest, a fire
destroys the fruit before it is picked. Under the UCC, the
rights and liabilities of Citrus and Juice in this
circumstance are generally determined by
Answer:
the concepts of identification and risk of loss.
Question:
12. Sure Good Appliance Corporation contracts with
Trucking Company to take a selection of appliances to
United Railroad, Inc., for United to transport the goods to
a VeriSafe Company warehouse. Trucking, United, and
VeriSafe each acknowledge possession of the goods by
a document of title. These parties are
Answer:
bailees.
Question:
13. Paramount Bookstores buys fifty cases of an assortment
of books from Quixote Publishing with the right to return
the unsold books in lieu of payment. This is
Answer:
a sale or return.
Question:
14. A contract between Fresh Fruit Corporation and Green
Grocer, Inc., requires Fresh Fruit to deliver goods to
Green Grocer's place of business. This is
Answer:
a destination contract.
Question:
15. Regional Freight LLC delivers a receipt issued by Storage
Warehouse for goods stored in its facility to Transnational
Inc., a buyer of the goods. This is
Answer:
a warehouse receipt.
CORRECT ANSWERS
Question:
1. In a dispute over a sale involving a skateboard, Greg
argues that as to this deal Hobby Shop, where Greg
bought the board, is a merchant. A court may determine
whether the shop is a merchant by assessing whether
Answer:
it holds itself out by occupation as having knowledge and skill unique to the
skateboard in the transaction.
Question:
2. Ferris is refinishing his kitchen floor and needs a floor
sander to complete the job. Ferris's neighbor Gina
suggests that he call Home Repair Rentals, Inc. Home
Repair leases Ferris a floor sander. In this transaction, the
lessor is
Answer:
Home Repair.
Question:
3. Dian, an agent for Expo Motors, Inc., writes a letter to
Flynn on November 1 stating that she will sell him a 2017
Subaru Outback for $25,000 between November 1 and
December 31. Dian's letter to Flynn is
Answer:
a merchant's firm offer.
Question:
4. Article 2 of the UCC governs
Answer:
contracts for the sale of goods.
Question:
5. Ed sells his car to Fran for $5,000, his bike to Gwen for
$600, his game player to Holly for $200, and three shares
of stock to Inez for $100. Article 2 of the UCC does not
apply to the sale of
Answer:
the patent.
,Question:
6. Refined Metals Company and Superior Fabrication, Inc.,
enter into a contract under which Refined agrees to
deliver a certain quantity of sheet metal to Superior each
month. The contract does not include a price term. In a
suit between the parties over the price, a court will
Answer:
determine a reasonable price.
Question:
7. Jack sells a grand piano to Kyle for $5,000 and a gold
ring to Lauren for $999. A writing is required to enforce
the sale of
Answer:
the piano and the gold ring.
Question:
8. Bert's Bagels, Inc., and other bakeries refer to a "baker's
dozen" as consisting of a collection of thirteen baked
goods. This is an example of
Answer:
usage of trade.
Question:
9. Lee pays Mobile Electronics $600 for a new phone.
Under the UCC, this is
Answer:
a sale.
Question:
10. Red Bev LLC contracts to buy two tons of strawberries
from Sweet Fruits, Inc. The contract states that Sweet
Fruits is required to ship the strawberries to Red Bev by
Truck Transport Inc. The contract is
Answer:
a shipment contract.
, Question:
11. In a sale of oranges from Citrus Grove Farms to Juice
Factory Inc. to be delivered after the harvest, a fire
destroys the fruit before it is picked. Under the UCC, the
rights and liabilities of Citrus and Juice in this
circumstance are generally determined by
Answer:
the concepts of identification and risk of loss.
Question:
12. Sure Good Appliance Corporation contracts with
Trucking Company to take a selection of appliances to
United Railroad, Inc., for United to transport the goods to
a VeriSafe Company warehouse. Trucking, United, and
VeriSafe each acknowledge possession of the goods by
a document of title. These parties are
Answer:
bailees.
Question:
13. Paramount Bookstores buys fifty cases of an assortment
of books from Quixote Publishing with the right to return
the unsold books in lieu of payment. This is
Answer:
a sale or return.
Question:
14. A contract between Fresh Fruit Corporation and Green
Grocer, Inc., requires Fresh Fruit to deliver goods to
Green Grocer's place of business. This is
Answer:
a destination contract.
Question:
15. Regional Freight LLC delivers a receipt issued by Storage
Warehouse for goods stored in its facility to Transnational
Inc., a buyer of the goods. This is
Answer:
a warehouse receipt.
