Chapter 19 - Sales Contracts

An outputs contract is an agreement in which buyer purchases all the production of seller.

• True
• False

CIF (cost, insurance, and freight) means buyer covers risk to load, ship, and insure goods.

• True
• False

FOB (free on board) Miami means that seller must deliver goods to the Miami at seller’s risk and expense.

• True
• False

Shipment contract means that buyer must arrange for carrier to pick up and transport goods.

• True
• False

FAS means that seller must deliver goods alongside the vessel at the port at seller’s own risk and expense.

• True
• False

A consignment is not a sale, but an entrusting in which the consignor bears the risk of loss.

• True
• False

UCC Article 2 governs most sale of goods transactions in the United States.

• True
• False

T agrees to mow K’s lawn. K failed to pay T as agreed. The provisions of UCC Article 2 apply to T and K’s contract.

• True
• False

INCOTERMS were developed by the United Nations to determine title to goods .

• True
• False

Additional multiple choice on slides. Bonus point for now. Choose any answer!

• Georgia
• Squirrel
• Hoosiers
• Broom