R6 - Sales

Question 1

In a sale or return the _________ has title and risk of loss unless and until the goods are returned to the seller.

Answer 1

Buyer

Question 2

An affirmation of fact or promise that becomes part of the basis of the bargain creates

Answer 2

An express warranty

Question 3

Under an F.O.B. destination contract, who has the risk of loss?

Answer 3

The seller does until he places conforming goods into the buyer’s hands at the named destination, not necessarily the buyer’s place of business.

Question 4

The Statute of Frauds requires contracts involving sales of goods to be in writing if they exceed $500 (MYLEGS). However, these are the exceptions, and an oral contract will be enforceable.

Answer 4

"SWAP"
Specially manufactured (custom) goods.
Written confirmation between merchants
Admission in court
Performance

Question 5

Under the Sales Article of the UCC, a firm offer will be created only if the:

Answer 5

Offer remains open despite the absence of consideration, can be made only by merchants and must be in a signed writing.

Question 6

The warranty of title is:

Answer 6

A guarantee from the seller that the goods are delivered free of all liens of which the buyer is unaware.

Question 7

Under the Sales Article of the UCC, in an F.O.B. place of shipment contract, the risk of loss passes to the buyer when the goods:

Answer 7

Are delivered to the carrier.

Question 8

Under the Sales Article of the UCC, and unless otherwise agreed to, the seller’s obligation to the buyer is to:

Answer 8

Hold conforming goods and give the buyer whatever notification is reasonably necessary to enable the buyer to take delivery.

Question 9

In a sale on approval, risk of loss passes to the buyer:

Answer 9

Upon approval of the goods.