delivery of goods that are in transit
Identify the true statement in regard to the remedy that allows a seller or lessor to stop delivery of goods that are in transit.
If the buyer/lessee is solvent, the carrier or bailee can stop delivery only if the quantity shipped is a large shipment.
According to the Uniform Commercial Code (UCC), the title of the goods that are in transit is with the buyer and hence delivery
cannot be stopped by the seller or lessor.
Under the Uniform Commercial Code (UCC), if the buyer or lessee is insolvent, the carrier or bailee can stop delivery only if the
goods are worth $10,000 or more.
If the buyer or lessee is insolvent, the carrier or bailee cannot stop delivery regardless of the quantity shipped.
If a seller allows a buyer to take possession of the goods before deciding whether to complete the contract by making the
purchase, it creates a _____.
simple delivery contract
conditional sales contract
common-carrier delivery contract
Which of the following statements is true of the specific obligations of buyers and lessees?
The right to inspect is seldom waived unless the buyers expressly waive the right.
The sellers or lessors should allow the buyers to inspect the goods only after enforcing payment.
The buyers’ or lessees’ right to partial acceptance is forbidden under any circumstance.
The buyers or lessees may revoke acceptance of conforming goods if it can be proved that they can source the same goods
Which of the following statements is true of a common-carrier delivery contract?
The common carrier in such contracts is an independent contractor and not an agent of the seller.
If the delivery contract is an origin contract, the title remains with the seller till the common carrier delivers the
goods to the buyer.
If the delivery contract is a destination contract, the title passes to the buyer at the time and place of shipment.
The risk of loss transfers from the seller to the buyer even before the title is transferred to the buyer.
Under the Uniform Commercial Code (UCC) Sections 2-508 and 2A-513, sellers and lessors have the right to cure or fix problems with
nonconforming goods as long as:
the goods have not been inspected by the buyer or the lessee.
the buyer or the lessee has previously settled to a level of performance that is less than perfect.
they can prove that they can cure the problem within 90 days.
they give prompt notice of the intent to cure and go ahead and cure within the contract time for performance.
When nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC), the sellers or lessors:
are free from their contractual obligations.
lose their legal capacity to enter into contracts in the future.
have to deliver the particular goods identified in the contract.
are required to pay for the substitute goods.
In a sale-on-approval contract, the:
seller allows the buyer to take possession of the goods only after making the purchase.
title of the goods passes to the buyer even before the buyer notifies the seller about the approval of the contract.
risk of loss remains with the seller until the buyer notifies the seller about the approval of the contract.
seller cannot transfer physical possession of the goods, unless the buyer has a document of title indicating
ownership of the goods.
With the savings from his income, Salim purchases a wristwatch from a store at a local mall. In this scenario, Salim has _____
over the wristwatch.
Emily sells her car to David, and he pays her with a bad check. Before Emily can reclaim the car, David sells the car to a
third-party good-faith purchaser for value. Under these circumstances, _____.
the third-party good-faith purchaser gets a void title
Emily can reclaim the car from the third-party purchaser
the third-party good-faith purchaser gets a good title