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Exam 14: Discharge and Remedies

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Question 21

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Reference - Accidental Sale. ABC Motors ordinarily deals in used cars and also does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss; and his only recourse was against Connie. Which of the following is a proper identifying term for Connie?

A) A good-faith purchaser
B) A valid purchaser
C) A void purchaser
D) A voidable purchaser
E) An interested purchaser for value

F) A) and B)
G) A) and C)

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Question 22

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The UCC is divided into sections known as _______________.

A) Divisions
B) Articles
C) Subsections
D) Clauses
E) Amendments

F) A) and C)
G) A) and B)

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Question 23

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Under the UCC contracts for the sale of goods must be in writing in order to be enforceable if they are valued at _______________ or more.

Which of the following is true regarding the mirror-image rule and the UCC?

What do the words "deliver to the order of seller" indicate in a goods-in-bailment contract?

Tender of delivery is the moment goods are picked up by the buyer.

Which of the following is true when the designation FAS is used?

In a destination contract who bears the risk of loss while the goods are in transit?

The UCC was created in ____________.

Discuss when title and risk of loss pass to the buyer in a goods-in-bailment contract when (a) the seller has a negotiable document of title (b) the seller has a nonnegotiable document of title and (c) the seller has a contract or other instrument showing ownership that is not a negotiable or nonnegotiable document of title.

Which of the following occurs in a CIF agreement?

Belinda purchases a couch from Good Furniture Store. She pays for the couch, and the store agrees to deliver it. Unfortunately, on the way to her house, the vehicle overheats and burns, destroying the truck and the couch inside. Belinda asks for a refund or another couch. The store owner refuses on the basis that risk of loss had passed to Belinda. Who will win the dispute and why? What would have happened if Belinda had purchased the couch at a yard sale, and the loss occurred while the seller was delivering it?

Under Article 2(A) of the UCC which of the following is defined as a transfer of the right to possession and use of goods for a term in return for consideration?

The UCC does not recognize the concept of unconscionability.

Under Article 2 of the UCC which of the following is defined as tangible things which are movable at the time of identification to the contract for sale?

Under Article 2 of the UCC, which of the following consists of the passing of title from the seller to the buyer for a price?

Reference - Accidental Sale. ABC Motors ordinarily deals in used cars and also does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss; and his only recourse was against Connie. Which of the following is true regarding Connie's rights to the car?

Reference - Used Car Problems. Marcy purchased a used car from ABC Motors. Six months later the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy asked for her money back from ABC Motors. The manager there told her that the car was not stolen; that even if it were stolen, ABC Motors acted in good faith with no knowledge of a theft; and that, therefore, no refund was legally required. ABC Motors had also sold a used car to Frank who wrote a bad check for the car and left town but not before he sold the car to Betty who paid a fair price for the car believing that Frank had all rights to sell it. ABC Motors asked Betty to return the car, but she told ABC to forget it. Assuming that the thief who stole the car sold and delivered it to ABC Motors without the knowledge of any representative of ABC Motors of the theft, what kind of title did ABC Motors have?

Under the UCC, items are ____________ if they exist physically.

Under the UCC, a contract or contract provision is said to be _______________ if it is so unfair that a court would be unreasonable if it enforced the contract.