Reference no: EM133231301

1. A minor purchased a $5,000 gaming computer, paying cash. Four months later the minor (still not yet 18) returned the goods to seller and demanded her money back. What is the most likely result?

a. Seller has an insurable interest in the computer until the minor turns 18. So seller's insurance will refund $$.

b. Minor cannot return the computer because this is a valid, executed sales contract.

c. This question makes no sense to me. I'll review contracts classifications before the final exam.

d. Minor likely can repudiate this contract as it is a voidable contract. Most likely she will get her money back.

2. Assume seller and buyer are located in different cities and goods must be delivered to buyer's location. The contract for the sale of goods is silent on who bears the risk of loss if goods are damaged or destroyed in transit. When the contract is silent on this issue, Article 2 provides ___________ .

a. by default, this is a shipment contract, so buyer bears the risk of loss.

b. this is a transit contract, so both Seller and Buyer equally bear the risk of loss.

c. this is a destination contract by default, so seller bears the risk of loss.

d. only the common carrier bears the risk of loss while the goods are in transit, not seller or buyer.

3. Contractor's contract to buy 20 cans of interior housepaint required seller to segregate the cans from inventory and attach contractor's name to each cans. This process identifies the goods to the sales contract. Why should goods be identified in a sales contract?

a. State law requires construction materials to be insured by seller or buyer.

b. To create buyer's insurable interest in the goods.

c. Identification allows the seller and buyer to terminate all risk of loss if goods are damaged or destroyed before buyer takes possession.

d. UCC Article 2 requires identification (segregation and name labels) of goods to create a valid sales contract.

4. Seller in Abilene sells goods to buyer in Terrell. The contract states, "FOB Terrell." This contract is classified as a _________ contract.

a. rural to rural

b. shipment

c. destination

d. goods are unseen by buyer.

5. Two merchants entered into an oral sales contract for $700 worth of goods covered by Article 2. Buyer paid cash for full purchase price. Which statement best describes this scenario?

a. This is a voidable contract because it is oral.

b. This is a valid contract. Buyer gets good title to the goods.

c. This is a void contract because it is oral, not written.

d. This is a common law contract for the sale of goods. Title shifts to buyer.