Question

1.

A shipment contract requires all but which of the following in order to be designated a shipment contract?

Multiple Choice

• Title will pass to the buyer at the time and place of shipment.

• The seller must ship the goods to the buyer.

• Title remains with the seller until the goods are delivered to their destination.

• The seller must use a common carrier to ship the goods to the buyer.

2.

All but which of the following items is treated as a good under the UCC?

Multiple Choice

• Items attached to business realty

• Grains in the field

• Minerals or clay removed by the owner of the land

• Minerals or clay removed by the purchaser

3.

For contracts involving a sale of automobiles, which of the following individuals will be held to a higher standard of behavior under the Uniform Commercial Code (UCC)?

Multiple Choice

• A publishing firm that buys a new car for office use.

• A baker who sells his old van.

• A college student who buys a new car for personal use.

• A dealer of pre-owned cars.

4.

Nathalie, the owner of a designer furniture store in New York, orders for some goods from a manufacturer based in China. The manufacturer hires the services of a shipping company to deliver the goods to Nathalie's warehouse. This scenario is an example of a _______

Multiple Choice

• common-carrier delivery contract.

• conditional sales contract.

• goods-in-bailment contract.

• simple delivery contract.

 

Answer 1

1.

In a shipment contract, the seller is required to ship the goods to the buyer using a common carrier. However, the seller is not obligated to get the goods delivered to a particular destination. The ownership passes to the buyer at the time and place of delivery.

Title does not remain with the seller until the goods are delivered to their destination.

Thus, the correct option is Title remains with the seller until the goods are delivered to their destination.

2.

Section 2-105 of the Uniform Commercial Code defines goods as anything that is movable at the time of identification. This excludes money in which the price is to be paid, real estate and investment securities.

Out of all the options given, items attached to business realty are not movable.

Thus, the correct option is Items attached to business realty.

3.

Section 2-104(1) defines a merchant as someone who deals in goods. A merchant has knowledge or skills pertaining to the goods he deals in.

Here, the dealer is selling pre-owned cars and must have knowledge of all the cars he deals in.

Thus, the dealer would be held to a higher standard of behavior under the Uniform Commercial Code (UCC).

The correct option is A dealer of pre-owned cars.

4.

The given scenario is an example of common-carrier delivery contract.

When the seller ships the goods to the buyer using an independent contractor, it entails a common-carrier delivery contract. The manufacturer hired the services of a shipping company to get the goods delivered to the buyer, Nathalie.

Thus, the correct option is common-carrier delivery contract.