Deck 16: Sales of Personal Property

Question 1

Which of the following statements is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?

A) Parties to international business contracts for the sale of goods may choose not to be governed by the convention.
B) The convention covers contracts between two parties even if their operations are in countries that have not adopted the convention.
C) The convention extensively covers personal consumer transactions in addition to business-to-business situations.
D) The convention also applies to contracts where the buyer and seller have places of business in different states of the same country.

Answer 1

A

Question 2

Sara's visited Ben's, a famous designer jewelry store, to buy herself a necklace. She browsed through the store's product catalogue and chose a particular model of diamond necklace. After she chose it, the manager at Ben's sent an order to the manufacturer to make the necklace. Which of the following statements is true at this point in the scenario?

A) The necklace is an identified good.
B) Ben's holds the title to the diamond necklace.
C) Only a contract to sell has been made between Sara and Ben's.
D) The title to the necklace will pass to Sara as soon as the necklace is made.

Answer 2

C

Question 3

The difference between a sale and a contract to sell is that:

A) a sale involves an immediate transfer of title from one party to another while a contract to sell does not.
B) a sale always requires the price to be paid up front by the seller while a contract does not.
C) a contract to sell involves the immediate transfer of title from one party to another while a sale does not.
D) a contract always requires the price to be paid up front by the seller while a sale does not.

Answer 3

A

Question 4

In order to be the subject of a sale, goods must be existing.

Question 5

Law considers a sale to be the same as a contract to sell.

Question 6

The consideration in a sales contract is known as the price.

Question 7

What is a bill of sale? What purpose does it serve?

Question 8

Land is generally considered as intangible personal property.

Question 9

A bill of sale cannot serve to prove ownership of a good.

Question 10

If the individual goods of an illegal sale are separately priced, the sale is considered to be divisible.

Question 11

The sale of goods constitutes the largest number of contracts formed in the country's economic system.

Question 12

When a contract to sell is signed by two parties, a sale is said to have taken place.

Question 13

Which of the following is true of identified goods?

A) They are a type of existing goods.
B) They are goods in the designing stage.
C) Any contract purporting to sell identified goods is a contract to sell and not a sale.
D) Identified goods refer to goods that are yet to be manufactured by their seller.

Question 14

In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately.

Question 15

Which of the following acts govern the sales of movable personal property?

A) The Uniform Trade Secrets Act
B) The Uniform Consumer Leases
C) The Uniform Consumer Credit Code
D) The Uniform Commercial Code

Question 16

The consideration in a sales contract is always expressed in terms of money.

Question 17

Which of the following statements is true of illegal sales?

A) If a sale is divisible with a legal and illegal part, then neither part is enforceable by the law.
B) An indivisible sale with an illegal part makes the entire sale illegal.
C) If a sale involves several separate items but it is a lump-sum sale, then the sale is considered divisible.
D) If a party is completely innocent and has entered into an illegal sale, the court will not intervene to aid the party.

Question 18

The word "sale" as used in the Uniform Commercial Code (UCC), only applies to the sale of movable personal property.

Question 19

As per the UCC's definition of sale, in which of the following transactions has a sale taken place?

A) A transfers the ownership of 50 acres of land to B.
B) A pays B to repair his car.
C) A buys a bicycle from B's shop.
D) A purchases the digital rights to a book that B wrote.

Question 20

Which of the following statements is true of sales contracts?

A) If a sales contract does not state the price of goods that will be sold to the buyer, the contract is considered invalid.
B) A sales contract is ordinarily an express contract, but some of its terms may be implied.
C) When a contract includes the supply of both services and articles, the contract is always considered to be a contract for the sale of goods.
D) If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the contract is still binding on them.