Quiz 3 Study Guide

Question 1

The contract existing between the consignor and the carrier

Answer 1

Bill of lading

Question 2

A document of conveyance which provides written evidence of one’s title to tangible personal property

Answer 2

Bill of sale

Question 3

A seller agrees to transfer title to goods for a consideration (price) at a future time

Answer 3

Contract to sell

Question 4

A business entity created by statutory law and owned by individuals known as stockholders

Answer 4

Corporation

Question 5

Those goods which are, at the time of the contract, in existence and owned by the seller

Answer 5

Existing goods

Question 6

Those goods which are not in existence at the time a contract is agreed to

Answer 6

Future goods

Question 7

Movable tangible personal property

Answer 7

Goods

Question 8

The goods specified by the buyer and seller

Answer 8

Identified goods

Question 9

All property which is not real property

Answer 9

Personal property

Question 10

The actual and definite statement of a seller, either orally or in writing, at the time of the sale

Answer 10

Express warranty

Question 11

Warranties imposed by law, arising automatically because the sale has been made

Answer 11

Implied warranty

Question 12

Guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner

Answer 12

Warranty

Question 13

The party appointed by the principal to enter into a contract with a third party on behalf of the principal

Answer 13

Agent

Question 14

The authority an agent is believed by third parties to have because of the behavior of the principal

Answer 14

Apparent authority

Question 15

The authority of an agent, stated in the document or agreement creating the agency

Answer 15

Express authority

Question 16

An agent’s authority to do things not specifically authorized in order to carry out express authority

Answer 16

Implied authority

Question 17

One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract

Answer 17

Independent contractor

Question 18

A party who appoints a second party to serve as an agent

Answer 18

Principal

Question 19

A business entity created by statutory law and owned by individuals known as stockholders

Answer 19

Corporation

Question 20

A relationship of trust and confidence, such as that which exists between partners in a partnership

Answer 20

Fiduciary

Question 21

Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership

Answer 21

Limited liability company

Question 22

Partners who have their liability for the firm’s debts limited to the amount of their investment.

Answer 22

Limited partnership

Question 23

The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

Answer 23

Partnership

Question 24

Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.

Answer 24

Share holders (stockholders)

Question 25

An individual who takes no active part in the management of a partnership, but has capital invested in the business

Answer 25

Silent partner

Question 26

A business owned by one person who is subject to claims of creditors

Answer 26

Sole proprietorship

Question 27

Is a creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.

Answer 27

Sub-chapter S corporation