The Legal Environment Of Business Text And Cases 9th Edition By Cross – Test Bank

TRUE/FALSE QUESTIONS

1. A contract for a sale of real property or services is a contract for a sale of goods.

ANSWER: F PAGES: Section 1 TYPE: N
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2. Goods associated with real estate often fall within the scope of Article 2.

ANSWER: T PAGES: Section 1 TYPE: N
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3. Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

ANSWER: T PAGES: Section 2 TYPE: N
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4. Title and risk of loss can pass to the buyer from the seller before the goods are identified to the contract.

ANSWER: F PAGES: Section 3 TYPE: N
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5. Identification takes place when specific goods are designated as the subject mater of a sales or lease contract.

ANSWER: T PAGES: Section 3 TYPE: N
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6. Any explicit understanding between the buyer and the seller determines when title passes.

ANSWER: T PAGES: Section 3 TYPE: N
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7. A bill of lading is a receipt signed by a warehouse for goods stored in a warehouse.

ANSWER: F PAGES: Section 3 TYPE: N
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8. Under a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier.

ANSWER: F PAGES: Section 3 TYPE: N
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9. The contract term “free on board” indicates that the selling price of goods includes transportation costs to the specific F.O.B. place named in the contract.

ANSWER: T PAGES: Section 3 TYPE: N
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10. Merchants are held to a higher standard of performance or duty than are nonmerchants.

ANSWER: T PAGES: Section 4 TYPE: N
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11. Under a shipment contract, if the seller does not make a reasonable contract for transportation or notify the buyer of the shipment, the buyer can reject the goods if a material loss results.

ANSWER: T PAGES: Section 4 TYPE: N
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