NEW
Font size
WorksheetsCommercial Business Transactions Quiz
Total questions: 14
Worksheet time: 7mins
What is a negotiable instrument?
A transferable document that promises to pay the bearer a sum of money at a future date or on-demand
A document that represents partial ownership of a company
A document that guarantees the quality of goods
A document that transfers ownership of real property
Which of the following is covered by Article 2 of the Uniform Commercial Code?
Sale of goods
Service contracts
Lease of real property
Sale of stocks
What is a bailment?
Transfer of goods for free
Transfer of possession of goods without transferring ownership
Transfer of ownership of goods without transferring possession
Transfer of both possession and ownership of goods
What is an express warranty?
A promise made by the buyer regarding the delivery
A promise made by the buyer regarding the payment
An implied promise made by the seller or manufacturer regarding the goods
A specific promise made by the seller or manufacturer regarding the goods
What does the statute of limitations for breach of contract under U.C.C. Article 2 state?
6 years
4 years
8 years
2 years
When does the risk of loss pass from the seller to the buyer in an F.O.B. Destination contract?
When the goods are given to the carrier
When the goods are next to a means of transportation agreed to by the parties
When the buyer receives the goods
When the goods reach a particular destination
What happens if identified goods are destroyed before delivery?
The contract is still enforceable and the buyer can get their money back
The contract is void and the buyer can get their money back
The contract is still enforceable and the buyer can get another product
The contract is void and the buyer can get another product
What is the seller's right if the buyer is insolvent?
The seller may reclaim the goods from an insolvent buyer if he requests the goods 3 months from the delivery
The seller may cancel the contract as soon as the buyer is still in possession of goods when they say they cannot pay
The seller may reclaim the goods from an insolvent buyer if he requests the goods 10 days from the delivery
The seller may refuse to deliver goods to a buyer when the buyer is insolvent
What is commercial impracticability?
A situation where the buyer avoids the obligations of the contract due to seller's fault
A situation where the buyer avoids the obligations of the contract due to unforeseen circumstances beyond their control
A situation where the seller avoids the obligations of the contract due to unforeseen circumstances beyond their control
A situation where the seller avoids the obligations of the contract due to buyer's fault
What is the Merchants' Firm Offer Rule?
A merchant is required to keep an offer open beyond 3 months even if they promise to do so
A merchant must keep an offer open for a reasonable period of time if they receive no consideration
A merchant must keep an offer open for a reasonable period of time even if they receive no consideration
A merchant is not required to keep an offer open beyond 3 months even if they promise to do so
What is a voidable contract?
A contract that is not enforceable by law
A contract that can be enforced or rejected at the option of one of the parties
A contract that is enforceable by both parties
A contract that is enforceable by law but not by the parties
What is the effect of a mistake of fact on a contract?
It makes the contract voidable at the option of the party who made the mistake
It makes the contract voidable at the option of the other party
It has no effect on the contract
It makes the contract void
What is the effect of a breach of contract?
The breaching party must pay damages to the other party
The contract is terminated
The non-breaching party must pay damages to the breaching party
The contract is suspended
What is the effect of a failure of consideration on a contract?
It makes the contract voidable at the option of the party who did not receive the consideration
It makes the contract voidable at the option of the other party
It has no effect on the contract
It makes the contract void
