Reference no: EM133201124

1. Lassiter owns a parcel of real estate unencumbered by any liens ("free and clear"). She can be said to own the real estate

a. conditionally;

b. subject to a life estate;

c. in fee simple absolute;

d. pursuant to a bailment contract

2. In this type of deed, the seller not only conveys ownership in a parcel of real estate, but they also guarantees good title to the buyer.

a. a Warranty Deed;

b. a Quit Claim Deed;

c. a Sheriff's Deed;

d. a grant deed.

3. This power allows the government to condemn private property and commit it to public use, after  duly compensating the owner.

a. the power of fee simple absolute;

b. zoning;

c. eminent domain.

d. force majeure.

4. While attending a movie Furiya visits the restroom. While in the restroom, she removes her wristwatch and leaves it on the sink. Shivy finds the watch. The legal owner of the watch is:

a. Furiya

b. Shivy;

c. the owner of the theater;

d. the state of Washington.

5. Seo and Urban own a parcel of real estate as Joint tenants. In the event one of them dies, their title will pass to:

a. their heirs;

b. the other joint tenant;

c. it will depend on their wills;

d. the state of Washington.

6. Diep and Johnson own property as tenants in common. In the event one of them dies, their title will pass to:

a. their heirs;

b. the other tenant in common;

c. it will depend on their wills;

d. the state of Washington.

7. In the state of Washington, married couples own real estate:

a. according to the law of community property;

b. as tenants by the entirety;

c. as joint tenants;

d. as tenants in common.

8. In a gratuitous bailment strictly for the benefit of the bailee, the bailee owes what duty to the bailor?

a. the utmost duty of care;

b. an ordinary duty of care;

c. a very minimal duty of care;

d. no duty whatsoever.

9. The elements of a bailment are:

a. bailor, bailee, payment and return or dispose;

b. personal property, transferred to another party to be held, stored or transferred, without transfer of title;

c. sole benefit of bailor, mutual benefit, agreement to return or dispose of personal property;

d. all of the above.

10. In a bailment for mutual benefit of the parties, the bailee owes the following duty to the bailor;

a. the duty of utmost or great care;

b. a very slight duty of care;

c. an ordinary duty of care;

d. none of the above.

11. In a contract that calls for goods to be delivered, the UCC has a presumption in favor of:

a. A destination contract.

b. A shipment contract;

c. A quasi-contract;

d. An oral contract.

12.If a seller buys goods from a thief, the title acquired from the seller is:

a. Void

b. Voidable;

c. Void unless the buyer acted in good faith;

d. None of the above.

13. In a sales contract, Nunn, the buyer, buys goods from Sanborn-Keene, the seller. The goods are shipped to Nunn. Absent agreement to the contrary, Nunn owes payment:

a. upon delivery of the goods;

b. at the time the order is placed;

c. within 30 days of taking possession;

d. as agreed to by the parties.

14. Tullis takes her prized diamond ring into Asch for repairs. Asch, who is a merchant in the business of selling jewelry, mistakenly sells the ring to Goebel, who pays value, acts in good faith, and has no idea the rightful owner is Tullis. When the mistake is discovered,_____________is entitled to the ring.

a. Tullis;

b. Goebel;

c. Asch;

d. None of the above.

15. The Uniform Commercial Code defines "good faith" as:

a. honesty in fact;

b. caveat emptor;

c. whatever the parties agree to;

d. the UCC does not define good faith.

16.The duty of good faith imposed by the UCC:

a. can only be disclaimed in writing

b. can only be disclaimed if both parties are merchants

c. cannot be disclaimed;

d. is only an urban legend.

17. The UCC holds a merchant:

a. to a higher standard than a non-merchant.

b. to the same standard as a non merchant;

c. to whatever standard the parties agree to;

d. the UCC does not address the status of merchants.

18. What is the most accurate statement about the Uniform Commercial Code?

a. It has been adopted as advisory in most states;

b. it has been adopted almost in its entirety as a statute in every state;

c. Some states have adopted as a statute, others have not;

d. it is only an academic code, it does not have the force of law.

19. The UCC defines "sale" as:

a. a contract for the sale of goods;

b. a sales agreement between merchants;

c. the passing of title from the seller to the buyer for a price;

d. the UCC does not define sale.

20. To be a "good" an item must be:

a. tangible and movable;

b. fungible

c. not permanently attached to real property;

d. of good quality

21.In a contract that calls for goods to be delivered, the UCC has a presumption in favor of a:

a. destination contract.;

b. shipment contract;

c. bailment contract;

d. delivery contract.

22. It is the obligation of the seller in a sales contract to:

a. deliver title;

b. honor the contract;

c. tender delivery of conforming goods;

d. give a warranty of title.

23. Griffin has received a shipment of goods, but determined that 20% of the goods are defective. Under the Perfect Tender Rule, she can:

a. accept the entire order;

b. reject the entire order;

c. keep the conforming goods and return the defective ones;

d. all of the above.

24.A merchant makes an implied warranty of merchantability every time he or she sells goods(unless the warranty is excluded). To be merchantable, a good must be:

a. reasonably fit for its intended purpose;

b. conforming to the buyer's expectations;

c. accepted by the buyer.

d. all of the above.

25. In order for a buyer to have a cause of action for breach of express warranty, the buyer must be able to prove to the court that:

a. the warranty was in writing;

b. the seller was a merchant;

c. the warranty was not disclaimed;

d. the warranty was the basis for the bargain.

26. A warranty of title is:

a. express;

b. implied;

c. always given;

d. valid only if in writing.

27. In order for a seller to design a warranty upon which a buyer may rely, the seller must use either the words "guarantee" or "warranty."

True

False

28. Negotiable Instruments are governed by Article ____of the Uniform Commercial Code.

a. 2

b. 3

c. 4

d. 9

29. A check or draft is a(n):

a. order instrument;

b. promise instrument;

c. commercial instrument;

d. title instrument.

30. A promissory note or Certificate of Deposit is a(n):

a. order instrument;

b. promise instrument;

c. commercial instrument;

d. title instrument.

31. The key to liability on a negotiable instrument is:

a. delivery;

b. tender;

c. a promise;

d. a signature.

32. To qualify as a Holder in Due Course, the person or entity must take the instrument:

a. for value;

b. in good faith;

c. without notice of any defect in or defense to the instrument;

d. all of the above.

33. Forgery is a:

a. universal defense;

b. personal defense;

c. commercial defense;

d. none of the above.

34. Breach of contract is a:

a. universal defense;

b. personal defense;

c. commercial defense;

d. none of the above

35. A Holder in Due Course takes an instrument free of:

a. universal defense;

b. personal defenses;

c. commercial defenses;

d. none of the above.

36. Johnson, a secured creditor, repossesses Finley's car. She puts the car up for auction, where she sells the car for $3500. At the time of repossession, Finley owed $5500 on the car. Johnson completes the sale of the vehicle without notifying Finley of the date or place of the sale or the amount of the debt. As a result:

a. the repossession is void and the car must be returned to Finley;

b. the sale is void, the car must be returned to Finley;

c. Johnson forfeits her right to sue Finley for a deficiency judgment;

d. there is no impact at all.

37. Once filed, a financing statement is valid for:

a. 3 years;

b. 5 years;

c. 10 years;

d. indefinitely

38. As a financing statement is nearing expiration, it can be extended:

a. for another 3 years;

b. for another 5 years;

c. it can be extended indefinitely;

d. it cannot be extended.

39. A creditor finances the purchase of consumer goods. Perfection occurs:

a. automatically;

b. upon the filing of a financing statement;

c. when the debtor delivers the collateral to the creditor;

d. upon the filing of a continuation statement.

40. Secured Transactions are governed by Article_______of the Uniform Commercial Code.

a. 2

b. 3

c. 4

d. 9

41. List the elements of negotiability (there are six of them). NEED MORE EXPLANATION!

42. What are the requirements of a deed? NEED MORE EXPLANATION!

43. How does the UCC define a merchant? NEED MORE EXPLANATION!