Mod 23-27 Quiz

Question 1

Under Novation, the new party…

Answer 1

Assumes all responsibilities of original party

Question 2

Substituted contract involves…

Answer 2

The original parties to an agreement whereby all parties agree to substitute the terms and conditions of new and amended contract

Question 3

Under a substituted contract, parties are…2

Answer 3

1 released from their duties of original contract

2 continue contractual relationship

Question 4

During the investigative process of any license discrepancies, state boards initially work to ensure that a…

Answer 4

Full investigation is performed to determine if the matter should
Be pursued

Question 5

Full investigation by state boards include…2

Answer 5

1 subpoenaing witnesses and

2 collecting documents

Question 6

When does risk of loss pass when a nonmerchant sells an item to buyer?

Answer 6

Risk of loss passes to buyer upon tender delivery to buyer

Question 7

The law considers a nonmerchant seller one who would not necessarily have…2

Answer 7

1 insurance or

2 safe storage for goods

Question 8

In order for a contract to be enforceable consideration must…

Answer 8

Be mutual

Question 9

Paying money is the…

2) performing a service is…

Answer 9

Consideration from the buyer

2) the consideration from the service provider

Question 10

There can be no contract without…

Answer 10

Acceptance

Question 11

Open acceptance would…

Answer 11

Not result in a sales contract

Question 12

Open quantity, under UCC sales article can…

Answer 12

Result in a contract

Question 13

Registration under the ‘33 Act requires…

Answer 13

Full disclosure of financial information

Question 14

One of the essential elements of a contract is…

Answer 14

Legal capacity

Question 15

Minors are considered to have…

2) as a result, the general treatment of minors by the law is…

Answer 15

Compromised contractual capacity

2) favorable

Question 16

A minor may disaffirm (get out of) a contract for…2

Answer 16

1 Nonnecessities (ex. Computer)

2 whether executed or partly executed

Question 17

The minor is to return the goods, if able, after disaffirmance. If a minor is unable to return goods or the goods are damaged, the…

Answer 17

Adult party generally bears the loss

Question 18

When the seller is a merchant, the risk of loss passes from the merchant seller to the buyer upon…

Answer 18

The buyer’s actual receipt of goods

Question 19

Risk of loss does not pass to buyer when seller…

Answer 19

Delivers goods in his own truck

Question 20

In a noncarrier case, risk of losses passes from merchant seller on…

Answer 20

Actual delivery of goods into buyer’s possession

Question 21

Mere tender at the seller’s place of business does…

Answer 21

Not pass risk of loss to buyer

Question 22

Since the seller is a merchant, risk of loss passes when…

Answer 22

Buyer takes actual physical possession of goods

Question 23

Neither the tender of the goods at the seller’s place of business nor use of the seller’s truck to deliver the goods is an event that transfers risk of loss to the buyer as the merchant seller…

Answer 23

Merchant seller still retains possession of the goods

Question 24

Novation requires…

Answer 24

At least one part of original contract to be substituted for new party