Question 1

When no documents of title are required, title does not pass.

Accepted Answer

A) True 
 B)False

Question 2

A contract between Fresh Fruit Corporation and Green Grocer Inc. requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Accepted Answer

A)  a bill of lading.
B)  a destination contract.
C)  a shipment contract.
D)  a warehouse receipt.E) All of the above
F) B) and C)

Question 3

If the seller is not a merchant, and the goods are being held by the seller for the buyer to pick up, the risk of loss passes to a buyer on identification.

Accepted Answer

A) True 
 B)False

Question 4

When a bailee is holding goods that are to be delivered under a contract without being moved, risk of loss passes when the bailee acknowledges the buyer's right to the goods.

Accepted Answer

A) True 
 B)False

Question 5

Generally, all contracts are assumed to be destination contracts if nothing to the contrary is stated in the contract.

Accepted Answer

A) True 
 B)False

Question 6

On a contract-"F.O.B. New York"-for a sale of almonds by a broker in California, the risk of loss passes to the buyer when conforming goods are placed in the possession of the carrier.

Accepted Answer

A) True 
 B)False

Question 7

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

Accepted Answer

A)  the right of ownership.
B)  who has title.
C)  the concepts of identification and risk of loss.
D)  all of the choices.E) None of the above
F) B) and D)

Question 8

A receipt issued by a warehouser for goods stored in a warehouse is a warehouse receipt .

Accepted Answer

A) True 
 B)False

Question 9

When a buyer breaches a sales contract, the risk of loss remains with the seller to the extent of any deficiency in the buyer's insurance coverage.

Accepted Answer

A) True 
 B)False

Question 10

In a shipment contract, the seller is required to deliver the goods to a particular destination.

Accepted Answer

A) True 
 B)False

Question 11

Parties to sales or lease contracts often obtain insurance coverage to protect against damage, loss, or destruction of the goods.

Accepted Answer

A) True 
 B)False

Question 12

If a lessor is a merchant who is holding the goods for the buyer to pick up, the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Accepted Answer

A) True 
 B)False

Exam 21: Title Risk and Insurable Interest

If a lessor is a merchant who is holding the goods for the buyer to pick up, the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Correct Answer
verified

When no documents of title are required, title does not pass.

Correct Answer
verified

In a shipment contract, the seller is required to deliver the goods to a particular destination.

Correct Answer
verified

If the seller is not a merchant, and the goods are being held by the seller for the buyer to pick up, the risk of loss passes to a buyer on identification.

Correct Answer
verified

Generally, all contracts are assumed to be destination contracts if nothing to the contrary is stated in the contract.

Correct Answer
verified

A receipt issued by a warehouser for goods stored in a warehouse is a warehouse receipt .

Correct Answer
verified

A contract between Fresh Fruit Corporation and Green Grocer Inc. requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Correct Answer
verified

Parties to sales or lease contracts often obtain insurance coverage to protect against damage, loss, or destruction of the goods.

Correct Answer
verified

When a buyer breaches a sales contract, the risk of loss remains with the seller to the extent of any deficiency in the buyer's insurance coverage.

Correct Answer
verified

On a contract-"F.O.B. New York"-for a sale of almonds by a broker in California, the risk of loss passes to the buyer when conforming goods are placed in the possession of the carrier.

Correct Answer
verified

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

Correct Answer
verified

When a bailee is holding goods that are to be delivered under a contract without being moved, risk of loss passes when the bailee acknowledges the buyer's right to the goods.

Correct Answer
verified

Exam 21: Title Risk and Insurable Interest

If a lessor is a merchant who is holding the goods for the buyer to pick up, the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Correct AnswerverifiedShow Answer

When no documents of title are required, title does not pass.

Correct AnswerverifiedShow Answer

In a shipment contract, the seller is required to deliver the goods to a particular destination.

Correct AnswerverifiedShow Answer

If the seller is not a merchant, and the goods are being held by the seller for the buyer to pick up, the risk of loss passes to a buyer on identification.

Correct AnswerverifiedShow Answer

Generally, all contracts are assumed to be destination contracts if nothing to the contrary is stated in the contract.

Correct AnswerverifiedShow Answer

A receipt issued by a warehouser for goods stored in a warehouse is a warehouse receipt .

Correct AnswerverifiedShow Answer

A contract between Fresh Fruit Corporation and Green Grocer Inc. requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Correct AnswerverifiedShow Answer

Parties to sales or lease contracts often obtain insurance coverage to protect against damage, loss, or destruction of the goods.

Correct AnswerverifiedShow Answer

When a buyer breaches a sales contract, the risk of loss remains with the seller to the extent of any deficiency in the buyer's insurance coverage.

Correct AnswerverifiedShow Answer

On a contract-"F.O.B. New York"-for a sale of almonds by a broker in California, the risk of loss passes to the buyer when conforming goods are placed in the possession of the carrier.

Correct AnswerverifiedShow Answer

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

Correct AnswerverifiedShow Answer

When a bailee is holding goods that are to be delivered under a contract without being moved, risk of loss passes when the bailee acknowledges the buyer's right to the goods.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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Correct Answer
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