CBAD 345 Exam #1 questions with
correct answers
If a contract for a sale of goods does not include a quantity term, it is a requirements contract. - correct
answer ✔✔FALSE: If a contract does not include a quantity term, there is no contract. In a requirements
contract, the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what
the buyer needs or requires.
CIF (cost, insurance, freight) - correct answer ✔✔named port of destination - risk of loss or damage of
goods is transferred to buyer once goods have passed the ship's rail
Unless the contract provides otherwise, what is the place of delivery assumed to be? - correct answer
✔✔Shipment contract
Under a shipment contract, the risk of loss passes to the buyer when the seller places conforming goods
in the possession of the carrier. - correct answer ✔✔TRUE: Under a shipment contract, the risk of loss
passes to the buyer when the seller places conforming goods in the possession of the carrier.
Johnny, Inc., a Korean corporation, offered to sell J-Materials Inc a 500 forklifts.
The contract was silent on the price of the forklifts.
The parties: - correct answer ✔✔Have an invalid contract
Blend Juice Company contracts to buy a fruit crop from Citrus Farms. Before an interest in the fruit can
pass from Citrus to Blend, Citrus must: - correct answer ✔✔In a sale that involves crops that are to be
harvested the next harvest season occurring after the contracting, identification takes place when the
crops are planted.
In effect, the United Nations Convention on Contracts for the International Sale of Goods requires that
the terms of the acceptance mirror those of the offer. - correct answer ✔✔TRUE: Article 19 of the CISG
provides that a contract can be formed even though the acceptance contains additional terms, unless
the additional terms materially alter the contract. Under the CISG, however, a material alteration
correct answers
If a contract for a sale of goods does not include a quantity term, it is a requirements contract. - correct
answer ✔✔FALSE: If a contract does not include a quantity term, there is no contract. In a requirements
contract, the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what
the buyer needs or requires.
CIF (cost, insurance, freight) - correct answer ✔✔named port of destination - risk of loss or damage of
goods is transferred to buyer once goods have passed the ship's rail
Unless the contract provides otherwise, what is the place of delivery assumed to be? - correct answer
✔✔Shipment contract
Under a shipment contract, the risk of loss passes to the buyer when the seller places conforming goods
in the possession of the carrier. - correct answer ✔✔TRUE: Under a shipment contract, the risk of loss
passes to the buyer when the seller places conforming goods in the possession of the carrier.
Johnny, Inc., a Korean corporation, offered to sell J-Materials Inc a 500 forklifts.
The contract was silent on the price of the forklifts.
The parties: - correct answer ✔✔Have an invalid contract
Blend Juice Company contracts to buy a fruit crop from Citrus Farms. Before an interest in the fruit can
pass from Citrus to Blend, Citrus must: - correct answer ✔✔In a sale that involves crops that are to be
harvested the next harvest season occurring after the contracting, identification takes place when the
crops are planted.
In effect, the United Nations Convention on Contracts for the International Sale of Goods requires that
the terms of the acceptance mirror those of the offer. - correct answer ✔✔TRUE: Article 19 of the CISG
provides that a contract can be formed even though the acceptance contains additional terms, unless
the additional terms materially alter the contract. Under the CISG, however, a material alteration
