BUL- Quiz 14 Ownership and Risk Test
Questions and Answers.
Buyer is located in Des Moines, Iowa and seller is located in Sacramento, California. The contract
specifies F.O.B. Des Moines. This contract is a:
Question options:
-destination contract.
-sale or return.
-shipment contract.
-sale on approval. - Answer destination contract.
Ruppart Manufacturing has a contract for the sale of 100 cases of teaching supplies to Teachers
Co-op, Inc. Payment of the order is to be made in installments over the next year. Ruppart
Manufacturing keeps a security interest in the cases sold to assure payment by Teachers Co-op,
Inc. When the order is completed, Ruppart ships the order. Legally:
Question options:
-both Ruppart and Teachers have an insurable interest in the supplies.
-only Ruppart has an insurable interest in the supplies.
-only Teachers has an insurable interest in the supplies.
-neither Ruppart nor Teachers has an insurable interest in the supplies. - Answer both Ruppart
and Teachers have an insurable interest in the supplies.
George's Grocery orders two dozen live lobsters from Sea Food Flyers. George's is to keep the
lobsters happy by keeping them in a tank following certain instructions to keep the water at the
right temperature, etc. The sale is made on a trial basis and George's may return all unsold
lobsters at the end of 10 days. This contract is a:
Question options:
-contract to sell future goods.
-conditional sale.
-sale or return.
-sale on approval. - Answer sale or return.
In January, Eddie contracts to sell 100 bushels of soybeans that fall. This contract:
Question options:
-is void. He cannot contract to sell a crop before it is even planted; the goods must be in
existence.
-is void. The soybeans must be identified to the contract at the time he contracts to sell them.
Questions and Answers.
Buyer is located in Des Moines, Iowa and seller is located in Sacramento, California. The contract
specifies F.O.B. Des Moines. This contract is a:
Question options:
-destination contract.
-sale or return.
-shipment contract.
-sale on approval. - Answer destination contract.
Ruppart Manufacturing has a contract for the sale of 100 cases of teaching supplies to Teachers
Co-op, Inc. Payment of the order is to be made in installments over the next year. Ruppart
Manufacturing keeps a security interest in the cases sold to assure payment by Teachers Co-op,
Inc. When the order is completed, Ruppart ships the order. Legally:
Question options:
-both Ruppart and Teachers have an insurable interest in the supplies.
-only Ruppart has an insurable interest in the supplies.
-only Teachers has an insurable interest in the supplies.
-neither Ruppart nor Teachers has an insurable interest in the supplies. - Answer both Ruppart
and Teachers have an insurable interest in the supplies.
George's Grocery orders two dozen live lobsters from Sea Food Flyers. George's is to keep the
lobsters happy by keeping them in a tank following certain instructions to keep the water at the
right temperature, etc. The sale is made on a trial basis and George's may return all unsold
lobsters at the end of 10 days. This contract is a:
Question options:
-contract to sell future goods.
-conditional sale.
-sale or return.
-sale on approval. - Answer sale or return.
In January, Eddie contracts to sell 100 bushels of soybeans that fall. This contract:
Question options:
-is void. He cannot contract to sell a crop before it is even planted; the goods must be in
existence.
-is void. The soybeans must be identified to the contract at the time he contracts to sell them.
