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BLW 201 10TH ED CHAPTER 21 T/F SELF QUIZ



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Under the UCC, title determines all of the rights and remedies of the parties to a sales contract.
 

 2. 

If a sale involves crops that are to be harvested within twelve months, identification takes place when the crops are planted or begin to grow.
 

 3. 

In contracts involving a sale of unborn animals to be born within twelve months, identification takes place when the animals are conceived.
 

 4. 

When an owner holds fungible goods as a tenant in common, the owner can pass title to the goods to a buyer only by physically separating the goods.
 

 5. 

When a document of title is required, title passes to a buyer when and where the document is delivered.
 

 6. 

When no document of title is required and delivery is made without moving the goods, title to identified goods passes when a contract for their sale is made.
 

 7. 

A lessor with voidable title has the power to transfer a valid leasehold interest to a good faith lessee for value.
 

 8. 

When a lessee sells leased equipment to a third party, the lessor cannot, under any circumstances, recover the equipment from the buyer.
 

 9. 

Under a shipment contract, the risk of loss passes to the buyer when the seller places conforming goods in the possession of the carrier.
 

 10. 

Under a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier.
 

 11. 

A warehousing company that normally issues documents of title for goods it receives is a bailee.
 

 12. 

If a seller is a merchant, and the goods are not to be moved, the risk of loss passes to a buyer on tender of delivery.
 

 13. 

If a seller is a merchant, and the goods are not to be moved, the risk of loss passes to a buyer when the buyer takes physical possession of the goods.
 

 14. 

If a seller is not a merchant, the seller holds the goods, and the buyer is to pick them up, the risk of loss passes to the buyer on tender of delivery.
 

 15. 

If a seller is not a merchant, and the goods are not to be moved, the risk of loss passes to a buyer on tender of delivery.
 

 16. 

In a sale or return, the seller delivers the goods to the buyer with the understanding that the buyer can set aside the deal by returning the goods.
 

 17. 

When goods are in a consignee's possession, the consignee's creditors will prevail over the consignor in an action to repossess the goods.
 

 18. 

In a sale on approval, title and risk of loss pass only when the buyer accepts the goods.
 

 19. 

When a buyer breaches a contract, the risk of loss immediately shifts to the seller.
 

 20. 

A buyer and a seller cannot normally have an insurable interest in identical goods at the same time.
 



 
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