Commercial Law: The Contract of Sale of Goods and Transfer of Property Online Test 2

Which document often evidences the formation of a contract of sale?

A memorandum of understandingAn invoiceA bill of ladingA purchase order

What is a characteristic of a contract of sale involving goods not yet in existence?

It is an absolute saleIt is a sale of future goodsIt is a sale by sampleIt is a sale of specific goods

Which implied warranty applies to the sale of goods by a seller who regularly deals in such goods?

Warranty of titleWarranty of merchantabilityWarranty against encumbrancesWarranty of fitness for a particular purpose

Which of the following is a breach of condition in a contract of sale?

Goods delivered lateGoods not matching the descriptionGoods of satisfactory qualityGoods delivered in installments

What determines when property in unascertained goods passes to the buyer?

When the goods are manufacturedWhen the goods are ascertainedWhen the contract is signedWhen the payment is made

Under what circumstance does the property in goods pass to the buyer even if the goods are not delivered?

When the goods are in transitWhen the buyer has paid in fullWhen the contract specifies the passage of propertyWhen the goods are inspected

Which of the following best describes a 'voidable title'?

A title that can be voided at the discretion of the buyerA title that is valid until annulled by the sellerA title that is never validA title that is always valid

Which exception to the 'nemo dat' rule involves the sale by a person who has obtained goods under a voidable contract?

Sale by an agentSale by a finder of goodsSale under a common law lienSale under a voidable title

In a contract of sale, who generally bears the risk of loss if the goods are destroyed before delivery and the property has not passed to the buyer?

The sellerThe buyerThe carrierThe insurer

What is the significance of a 'delivery note' in the context of the sale of goods?

It evidences the payment for the goodsIt acts as proof of the transfer of titleIt provides a record of the delivery of goodsIt guarantees the quality of the goods

What is the primary remedy available to a buyer when goods delivered do not conform to the contract?

RescissionDamagesSpecific performanceInjunction

What remedy is available to the buyer if the seller wrongfully neglects to deliver the goods?

RescissionSpecific performanceRight to retain the goodsRight to demand the goods

When can an unpaid seller exercise the right of lien?

When the buyer defaults on paymentWhen the goods are in transitWhen the goods are delivered to the buyerWhen the buyer resells the goods

What is the effect of an unpaid seller exercising the right of resale?

The original contract remains validThe original contract is terminatedThe buyer can still demand the goodsThe seller must refund the buyer

What is the effect of the auctioneer not accepting the highest bid?

The sale is invalidThe auction is voidThe highest bidder has a right to the goodsThe goods can be withdrawn from sale

What is the legal effect of an auction without reserve?

The auctioneer can withdraw the goods at any timeThe highest bid must be accepted regardless of the priceThe seller can set a minimum priceThe buyer can refuse to pay if the bid is too low