Deck 17: Sales

Question 1

The contract for a present sale of goods or for a sale of future goods is a(n):

A) contract for sale.
B) negotiation for sale.
C) accord of sale.
D) non-existent contract.

Answer 1

A

Question 2

A legally enforceable agreement that has as its purpose the immediate transfer of title to personal property in return for consideration and includes both a present sale of goods as well as an agreement for the sale of future goods is a:

A) contract for sale.
B) negotiated transaction.
C) contemplated transaction.
D) void transaction.

Answer 2

A

Question 3

A sales contract for goods of special design,construction,or manufacture is a contract for labor and materials.

Answer 3

True

Question 4

Most goods sold by reputable merchants can be returned for a variety of reasons unless the sale is clearly identified as final or the circumstances of the return are unreasonable.

Question 5

Contracts for services are not covered by the Uniform Commercial Code.

Question 6

Two additional kinds of sales are auction sales and conditional sales.

Question 7

A conditional sales contract is one way of selling merchandise with the condition that title will remain with the buyer until the purchase price has been paid.

Question 8

When a contract provides for the sale of goods subject to the buyer's approval,the transaction is a sale on return.

Question 9

The complete agreement for the contract of sale need not be in writing,but there must be some evidence of the intention of the parties.

Question 10

Goods that physically exist and are owned by the seller at the time of sale are considered:

A) accessible goods.
B) existing goods.
C) scarce goods.
D) profitable goods.

Question 11

If a buyer refuses to accept delivery of goods,the seller can store the goods for the buyer and sue to recover the sales price if the goods are not readily resalable to another customer.

Question 12

Stoppage in transit is the right of an unpaid seller to stop goods in transit and order the carrier to hold them for the seller.

Question 13

If a seller fails to deliver goods as promised,the buyer cannot buy similar goods to substitute for those not delivered.

Question 14

The term for goods that do not exist at the time of sale,such as crops and unborn livestock,is:

A) expected goods.
B) nonexistent goods.
C) future goods.
D) intangible goods.

Question 15

The Uniform Commercial Code (UCC)does not cover contracts for:

A) marriage.
B) lease.
C) sale.
D) services.

Question 16

A legally enforceable agreement that has as a purpose the immediate transfer of title to personal property in return for consideration is a contract for sale.

Question 17

Title to goods shipped free on board destination passes before the goods are delivered to the buyer.

Question 18

Goods that exist at the time of the sales transaction and are expected to come into the possession of the seller are considered future goods.

Question 19

In an entire and divisible sales contract,if all the components are interdependent and are included in the same order,an entire contract payment for the contract is required before the whole order is filled.

Question 20

In the event that the seller delivers goods that are not as specified in the contract,the buyer may revoke the contract and return the goods that are substantially different from those that were ordered.

Question 21

There is a possibility of expensive pieces of property being sold at auction for a pittance simply because no one offered a higher bid.This possibility occurs only at an auction:

A) with advertisement.
B) without reserve.
C) with final sale.
D) with reserve.

Question 22

A reputed merchant will agree to a sale or return in order to maintain:

A) balance.
B) family.
C) goodwill.
D) tax returns.

Question 23

The UCC provides that,in the absence of negligence or fraud,legal action to remedy a breach of sales contract must be started within ________from the breach.

A) four years
B) two years
C) five years
D) eight years

Question 24

A contract of selling merchandise with the condition that title will remain with the seller until the purchase price has been paid is a:

A) provisional purchase.
B) qualified sales contract.
C) conditional sales contract.
D) restrictive purchase contract.

Question 25

If a bid is made while the hammer is falling,the auctioneer may use his or her _________ to reopen the bidding.

A) discretion
B) contacts
C) mediation
D) intricacy

Question 26

A contract for labor and materials to be enforceable,even though it involves $500 or more:

A) must be entered by parties owning a business.
B) must be certified by notary.
C) should always be in writing.
D) need not always be in writing.

Question 27

In entire and divisible contracts,until the whole order is filled,the payment of contract:

A) cannot be obligatory.
B) would be compulsory.
C) would not be required.
D) would be mandatory.

Question 28

A sales contract for goods of special design,construction,or manufacture is a contract for:

A) specialty goods.
B) labor and materials.
C) design.
D) manufacturing.

Question 29

When goods are shipped free on board (f.o.b.)shipping point by common carrier,title passes from the seller to the buyer when the goods:

A) are delivered to the buyer.
B) are turned over to the carrier.
C) are sold.
D) reach the carrier's warehouse.

Question 30

A contract that gives the buyer title to goods and the opportunity to return them to the seller at a later time is a:

A) contract for sale with the right of return.
B) sale on approval of the buyer.
C) contract to sell.
D) trial contract.

Question 31

When the buyer is insolvent,the UCC provides the seller with the right of:

A) action in shipment.
B) strike in transfer.
C) walk out in transit.
D) stoppage in transit.

Question 32

The sale of goods can be made with the understanding that the purchaser takes title to the goods but has the right to return them within:

A) one year.
B) a period of one month.
C) a period of two months.
D) a reasonable time.

Question 33

A) free on board.
B) freight on board.
C) freight on bail.
D) freedom on bail.
F)o.b. is the abbreviated form of:

Question 34

When goods are sold free on board (f.o.b.)shipping point,title to the goods passes from the seller to the buyer when the carrier ________ the shipment.

A) discards
B) receives
C) deports
D) retreats

Question 35

When the buyer refuses to pay the purchase price and the seller has the possession of the goods,the seller may:

A) resell the goods and sue the buyer.
B) get the buyer arrested.
C) destroy the goods and sue the buyer.
D) manhandle the buyer.

Question 36

A contract in which title and risk of loss remain with the seller and that provides for the sale subject to the buyer's final decision is a(n):

A) endorsement of contract.
B) sale on approval.
C) contract to sell.
D) contract for sale.

Question 37

Title to goods shipped free on board (f.o.b.)destination passes when the goods are delivered to the buyer.In the event of their loss,the cost of transporting the goods is paid to the carrier by the seller but is usually included in the buyer's invoice or is billed to the buyer separately.This method of shipment offers the buyer a(n):

A) option.
B) freedom.
C) expansion.
D) advantage.

Question 38

In sales contracts,the complete agreement need not be in writing,but there must be some evidence of the:

A) purpose of the seller.
B) objective of the buyer.
C) fraud by the parties.
D) intention of the parties.

Question 39

When the buyer refuses to accept delivery of the goods the seller may:

A) manhandle the buyer for rejection.
B) wait for the buyer to receive the goods.
C) destroy the goods and sue the buyer.
D) sue to recover the sales price.

Question 40

At an auction sale,the seller is the owner of the goods and the buyer is the party:

A) conducting the transaction.
B) making the offer.
C) giving the opinion.
D) abstaining from negotiation.

Question 41

Explain sellers' remedies for breach of a sales contract.Provide an example.

Question 42

Use an example to explain buyers' remedies for breach of a sales contract.

Question 43

Explain contract of sale with right of return.

Question 44

How does the transfer of title differ in a contract for sale and a contract to sell?

Question 45

Describe the purpose and terms of a conditional sales contract.