BUL 3310 FSU Bailey Unit 6
Having lost his job in the recent recession and facing property taxes that were past due,
Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser
for value at a price that was well below its market value. Ed now regrets this decision
and asks if he has any legal basis for rescinding the contract. Please advise Ed. -
✔️✔️No, this was a valid bargained for exchange with a good faith purchaser for value
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? - ✔️✔️Yes, in this transaction the sale of goods "predominates"
A party who enters into a contract with a minor has the same right as the minor to
disaffirm the contract. - ✔️✔️False
A party who misstates an important fact during contract negotiations has an affirmative
duty to correct that misstatement before entering into the contract. - ✔️✔️True
Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he turned
18, the age of majority in his state, Mike decided he didn't want the car anymore and
returned it to Used Car Lot. Mike had put 50,000 miles on the car. Applying the law
followed by the majority of states, please select the statement that best describes Mike's
rights in these circumstances. - ✔️✔️Mike would be entitled to get back the full 6,000
purchase price
For which of the following purchases would a minor be liable to the seller for the fair
value of the goods? - ✔️✔️Medicine
Which of the following elements is present in fraudulent misrepresentation but not in
innocent misrepresentation? - ✔️✔️Scienter
For which of the following purchases could a minor disaffirm the contract and get the full
purchase price back? - ✔️✔️iPod
Innocent misrepresentation can be the basis for the injured party to rescind the contract.
- ✔️✔️True
A unilateral mistake of value is grounds for rescinding the contract. - ✔️✔️False
The document issued by a common carrier evidencing receipt of goods for shipment is
an __________________. - ✔️✔️Bill of lading
, Farmers are Article 2 "merchants "in some states and "non-merchants" in other states. -
✔️✔️True
Article 2A of the Code governs - ✔️✔️Leases of goods
A buyer who discovers that goods bough C.O.D. are defective has no recourse against
seller for the defective goods. - ✔️✔️False
In a sale on approval, the buyer has the risk of loss until the goods are returned to the
seller. - ✔️✔️False
Which of the following is not a good under Article 2 of the Code? - ✔️✔️Natural gas
extracted from the ground by the buyer
Under the freedom of contract, merchants may, by mutual consent, disclaim the
obligations of good faith and due care imposed by the Code. - ✔️✔️False
Crops are identified to the contract when they are planted. - ✔️✔️True
If the goods are being sold under a negotiable document if title, such as a bill of lading,
risk of loss passes to the buyer when - ✔️✔️The document is tendered to the buyer
The victim of negligent misrepresentation may recover contract damages, but not
punitive damages. - ✔️✔️True
Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the
contract was signed, Sid called Bea to say that he had forgotten that the dealership
would not let that Camry go for less than 9,000 so she would have to pay an additional
1,000 if she wanted the car. Is Bea liable for the extra 1,000? - ✔️✔️No, this is a
unilateral mistake of fact by Sid
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is -
✔️✔️Voidable by Mike
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had
belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old.
When getting parts for the mower, Ann learned that the mower was in fact 7 years old.
Ann can rescind the contract based on - ✔️✔️Innocent misrepresentation
Jacob inherited his grandfather's farm when he was 16. He sold the farm to Buyer, who
in turn sold it to a good faith purchaser for value (GFP). Under the common law, Buyer
took _____________ title from Jacob, and transferred ______________ title to the GFP
- ✔️✔️Voidable; voidable
Having lost his job in the recent recession and facing property taxes that were past due,
Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser
for value at a price that was well below its market value. Ed now regrets this decision
and asks if he has any legal basis for rescinding the contract. Please advise Ed. -
✔️✔️No, this was a valid bargained for exchange with a good faith purchaser for value
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? - ✔️✔️Yes, in this transaction the sale of goods "predominates"
A party who enters into a contract with a minor has the same right as the minor to
disaffirm the contract. - ✔️✔️False
A party who misstates an important fact during contract negotiations has an affirmative
duty to correct that misstatement before entering into the contract. - ✔️✔️True
Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he turned
18, the age of majority in his state, Mike decided he didn't want the car anymore and
returned it to Used Car Lot. Mike had put 50,000 miles on the car. Applying the law
followed by the majority of states, please select the statement that best describes Mike's
rights in these circumstances. - ✔️✔️Mike would be entitled to get back the full 6,000
purchase price
For which of the following purchases would a minor be liable to the seller for the fair
value of the goods? - ✔️✔️Medicine
Which of the following elements is present in fraudulent misrepresentation but not in
innocent misrepresentation? - ✔️✔️Scienter
For which of the following purchases could a minor disaffirm the contract and get the full
purchase price back? - ✔️✔️iPod
Innocent misrepresentation can be the basis for the injured party to rescind the contract.
- ✔️✔️True
A unilateral mistake of value is grounds for rescinding the contract. - ✔️✔️False
The document issued by a common carrier evidencing receipt of goods for shipment is
an __________________. - ✔️✔️Bill of lading
, Farmers are Article 2 "merchants "in some states and "non-merchants" in other states. -
✔️✔️True
Article 2A of the Code governs - ✔️✔️Leases of goods
A buyer who discovers that goods bough C.O.D. are defective has no recourse against
seller for the defective goods. - ✔️✔️False
In a sale on approval, the buyer has the risk of loss until the goods are returned to the
seller. - ✔️✔️False
Which of the following is not a good under Article 2 of the Code? - ✔️✔️Natural gas
extracted from the ground by the buyer
Under the freedom of contract, merchants may, by mutual consent, disclaim the
obligations of good faith and due care imposed by the Code. - ✔️✔️False
Crops are identified to the contract when they are planted. - ✔️✔️True
If the goods are being sold under a negotiable document if title, such as a bill of lading,
risk of loss passes to the buyer when - ✔️✔️The document is tendered to the buyer
The victim of negligent misrepresentation may recover contract damages, but not
punitive damages. - ✔️✔️True
Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the
contract was signed, Sid called Bea to say that he had forgotten that the dealership
would not let that Camry go for less than 9,000 so she would have to pay an additional
1,000 if she wanted the car. Is Bea liable for the extra 1,000? - ✔️✔️No, this is a
unilateral mistake of fact by Sid
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is -
✔️✔️Voidable by Mike
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had
belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old.
When getting parts for the mower, Ann learned that the mower was in fact 7 years old.
Ann can rescind the contract based on - ✔️✔️Innocent misrepresentation
Jacob inherited his grandfather's farm when he was 16. He sold the farm to Buyer, who
in turn sold it to a good faith purchaser for value (GFP). Under the common law, Buyer
took _____________ title from Jacob, and transferred ______________ title to the GFP
- ✔️✔️Voidable; voidable
