BUL 3310 UNIT 6 UPDATED EXAM QUESTIONS AND ANSWERS
A bilateral mistake of fact is grounds for rescinding the contract.
-True
-False - CORRECT ANSWER✅✅True
A seller who knows that his property has a defect not discoverable by the buyer will be liable for
fraudulent misrepresentation if he does not disclose the defect.
-True
-False - CORRECT ANSWER✅✅True
Punitive damages may be awarded to victims of fraudulent misrepresentation.
-True
-False - CORRECT ANSWER✅✅True
If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract.
-True
-False - CORRECT ANSWER✅✅False
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP).
Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred
_________________title to the GFP.
-Good-----------------------------------Good
-Voidable-------------------------------Good
-Voidable-------------------------------Voidable
,-Void-------------------------------------Good - CORRECT ANSWER✅✅Voidable-------------------------------Good
The purpose of reformation is to correct the written contract to reflect the actual intentions of the
parties.
-True
-False - CORRECT ANSWER✅✅True
Any person who occupies a position of trust and confidence in relation to another person or his property
is a trustee.
-True
-False - CORRECT ANSWER✅✅False
Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for
whether the statement is true or false.
-True
-False - CORRECT ANSWER✅✅True
Minors may only avoid executory, not executed, contracts.
-True
-False - CORRECT ANSWER✅✅False
Which of the following elements is present in fraudulent misrepresentation but not in innocent
misrepresentation?
-Reasonable reliance by the innocent party
-Scienter
, -Misrepresentation of a material fact
-Economic damage to the innocent party - CORRECT ANSWER✅✅Scienter
Which of the following statements is false about sale or return contracts?
-The goods must be used as consumer goods.
-Buyer has the risk of loss until the goods are sold
-Buyer has the risk of loss during shipment of the goods back to the seller.
-The goods are subject to claims by the buyers creditors while they are in his possession. - CORRECT
ANSWER✅✅The goods must be used as consumer goods.
Which of the following is true about goods sold under a sale or return contract?
-The goods must be used as consumer goods.
-Seller has the risk of loss until the goods are sold by the buyer.
-Seller has the risk of loss during the return shipment of the goods.
-Buyer's creditors have a claim to the goods while they in Buyer's possession - CORRECT
ANSWER✅✅Buyer's creditors have a claim to the goods while they in Buyer's possession
Which of the following is not classified as a good under Article 2?
-Food sold and consumed in a restaurant
-Food sold as take out and consumed at home.
-An unborn race horse
-A 3 month lease on a lakeside cabin. - CORRECT ANSWER✅✅A 3 month lease on a lakeside cabin.
Article 2 of the Code covers the sale of land and improvements on the land.
-True
A bilateral mistake of fact is grounds for rescinding the contract.
-True
-False - CORRECT ANSWER✅✅True
A seller who knows that his property has a defect not discoverable by the buyer will be liable for
fraudulent misrepresentation if he does not disclose the defect.
-True
-False - CORRECT ANSWER✅✅True
Punitive damages may be awarded to victims of fraudulent misrepresentation.
-True
-False - CORRECT ANSWER✅✅True
If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract.
-True
-False - CORRECT ANSWER✅✅False
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP).
Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred
_________________title to the GFP.
-Good-----------------------------------Good
-Voidable-------------------------------Good
-Voidable-------------------------------Voidable
,-Void-------------------------------------Good - CORRECT ANSWER✅✅Voidable-------------------------------Good
The purpose of reformation is to correct the written contract to reflect the actual intentions of the
parties.
-True
-False - CORRECT ANSWER✅✅True
Any person who occupies a position of trust and confidence in relation to another person or his property
is a trustee.
-True
-False - CORRECT ANSWER✅✅False
Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for
whether the statement is true or false.
-True
-False - CORRECT ANSWER✅✅True
Minors may only avoid executory, not executed, contracts.
-True
-False - CORRECT ANSWER✅✅False
Which of the following elements is present in fraudulent misrepresentation but not in innocent
misrepresentation?
-Reasonable reliance by the innocent party
-Scienter
, -Misrepresentation of a material fact
-Economic damage to the innocent party - CORRECT ANSWER✅✅Scienter
Which of the following statements is false about sale or return contracts?
-The goods must be used as consumer goods.
-Buyer has the risk of loss until the goods are sold
-Buyer has the risk of loss during shipment of the goods back to the seller.
-The goods are subject to claims by the buyers creditors while they are in his possession. - CORRECT
ANSWER✅✅The goods must be used as consumer goods.
Which of the following is true about goods sold under a sale or return contract?
-The goods must be used as consumer goods.
-Seller has the risk of loss until the goods are sold by the buyer.
-Seller has the risk of loss during the return shipment of the goods.
-Buyer's creditors have a claim to the goods while they in Buyer's possession - CORRECT
ANSWER✅✅Buyer's creditors have a claim to the goods while they in Buyer's possession
Which of the following is not classified as a good under Article 2?
-Food sold and consumed in a restaurant
-Food sold as take out and consumed at home.
-An unborn race horse
-A 3 month lease on a lakeside cabin. - CORRECT ANSWER✅✅A 3 month lease on a lakeside cabin.
Article 2 of the Code covers the sale of land and improvements on the land.
-True
