CPCU 530 - Chapter 4 Exam | Questions with
100% Correct Answers | Verified | Latest Update
2026/2027
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Terms in this set (94)
What is the Uniform Commercial A model law that applies to commercial
Code (UCC) transactions such as the sale of goods, leases,
contracts, and negotiable instruments.
What is article 2 of the UCC? Governs contracts for the sale of goods
What are goods? Tangible, moveable property other than money
What are merchants? Professionals specializing in sales of goods
What is a bilateral contracts? Requires the exchange of contractual promises
What is a unilateral contracts? Requires exchange of a promise for an act
What are the three types of sales 1. Sale on approval
contracts? 2. Sale or return
3. Auction sales
What is a sale on approval? Buyer receives goods to test before buying them
What is sale or return? Buyer receives goods for resale and retains the
right to return unsold goods
, What is an auction sale type sales Goods are offered to the public, highest bid is
contract? acceptance of the offer.
What is an offer with regards to the Definite enough that the parties understand their
formation of a sales contract? obligations, if left open contract remains valid so
long as a court has some basis of remedy
What is acceptance regards to the UCC allows acceptance in any reasonable manner
formation of a sales contract?
What is the statute of frauds, and Requires certain contracts to be in writing, governs
when does it apply? contracts involving goods worth over $500
In what three situations are oral 1. Buyer received partial deliver of the goods
contracts acceptable for the sale of 2. Buyer makes partial or full payment for the
goods over $500? goods
3. Seller is selling goods specially manufactured
for the buyer
UCC says what regarding title and Risk follows title except when buyer agrees to pick
risk of loss? up identified goods at sellers home or place of
business
What is free on board (FOB) place of Seller delivers the goods to the shipper at the
shipment? seller's risk and expense
What is free on board (FOB) place of Seller must transport goods to their final
destination? destination at own risk and expense
What is free along side (FAS) vessel? Seller must deliver goods to shipping vessel and
own risk and expense
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (94)
What is the Uniform Commercial A model law that applies to commercial
Code (UCC) transactions such as the sale of goods, leases,
contracts, and negotiable instruments.
What is article 2 of the UCC? Governs contracts for the sale of goods
What are goods? Tangible, moveable property other than money
What are merchants? Professionals specializing in sales of goods
What is a bilateral contracts? Requires the exchange of contractual promises
What is a unilateral contracts? Requires exchange of a promise for an act
What are the three types of sales 1. Sale on approval
contracts? 2. Sale or return
3. Auction sales
What is a sale on approval? Buyer receives goods to test before buying them
What is sale or return? Buyer receives goods for resale and retains the
right to return unsold goods
, What is an auction sale type sales Goods are offered to the public, highest bid is
contract? acceptance of the offer.
What is an offer with regards to the Definite enough that the parties understand their
formation of a sales contract? obligations, if left open contract remains valid so
long as a court has some basis of remedy
What is acceptance regards to the UCC allows acceptance in any reasonable manner
formation of a sales contract?
What is the statute of frauds, and Requires certain contracts to be in writing, governs
when does it apply? contracts involving goods worth over $500
In what three situations are oral 1. Buyer received partial deliver of the goods
contracts acceptable for the sale of 2. Buyer makes partial or full payment for the
goods over $500? goods
3. Seller is selling goods specially manufactured
for the buyer
UCC says what regarding title and Risk follows title except when buyer agrees to pick
risk of loss? up identified goods at sellers home or place of
business
What is free on board (FOB) place of Seller delivers the goods to the shipper at the
shipment? seller's risk and expense
What is free on board (FOB) place of Seller must transport goods to their final
destination? destination at own risk and expense
What is free along side (FAS) vessel? Seller must deliver goods to shipping vessel and
own risk and expense
