ACCT 511 Week 3 Quiz | Liberty University | Assignment Help
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- 14 May 2021
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- Accounting & Economics Assignment Help / Accounting basics
ACCT 511 Week 3 Quiz | Liberty University | Assignment Help
ACCT 511 Week 2 Quiz 2
1.
Which of the following remedies would be unavailable to a buyer that could buy the same kind of goods from elsewhere?
Multiple Choice
• Specific performance
• Actual damages
• Consequential damages
• Incidental damages
2.
Auto Mart sells new and used vehicles and finances its inventory through ABC Bank. Finn purchases a new car from Auto Mart and receives good title free and clear of ABC’s security interest. Which of the following is false?
Multiple Choice
• ABC is more interested in the proceeds from the sale rather than the inventory.
• Finn is liable to ABC because ABC has superior title.
• Finn receives this protection to promote confidence in commercial transactions.
• Finn is a buyer in the ordinary course of business.
3.
The notice of lien typically must be filed within what period of time?
Multiple Choice
• 136 days from when the last work is performed
• Within 24 hours
• 365 days from when the last work is performed
• 30 to 90 days after the last work is performed
4.
Mei issues a purchase order to June for goods that cost $25,000. June agrees to provide the same but she does not sign the purchase order. Mei can file a suit for the breach of contract.
True or False
True
FalseCorrect
5.
In a _____ contract, the goods are delivered to the buyer primarily for the buyer's use.
Multiple Choice
• sale on approval
• sale or return
• supply of goods
• delivery
6.
_____ refer(s) to the goods used or bought primarily for personal purposes.
Multiple Choice
• Fixtures
• Equipment
• Consumer goods
• Inventory
7.
If the shipping terms are cash on delivery (COD), then the buyer:
Multiple Choice
• must pay for the goods if it is obvious without inspection that the goods do not conform to the contract.
• need not pay for the goods if inspection is not allowed.
• must pay the expenses of inspection if the goods do not conform to the contract.
• must pay for the goods before inspecting them unless they are marked "Inspection Allowed."
8.
Which of the following is a means of obtaining control over the collateral?
Multiple Choice
• The secured party becomes the bank's customer for the deposit account.
• The debtor is the bank with which the deposit is maintained.
• The debtor becomes the bank's customer for the deposit account.
The bank has agreed to comply with the debtor's instructions regarding the funds in the account.
9.
Which section of the UCC governs statute of limitations in contract disputes?
Multiple Choice
• 1-102
• 2-301
• 2-725
• 2-703
10.
A ____ is a type of contractual security device by which real estate may be used as a security
Multiple Choice
• trust deed
• surety contract
• trust receipt
• conditional sales contract
11.
Which of the following occurs when the plaintiff uses the product in some unusual, unforeseeable way, and this causes the loss for which he sues?
Multiple Choice
• Assumption of risk
• Contributory negligence
• Frustration of purpose
• Product misuse
12.
If a seller fails to deliver goods called for in the contract, the buyer may purchase substitute goods and recover as damages the difference between the contract price and the cost of the substituted goods. This is known as:
Multiple Choice
• incidental damages.
• action for the price.
• specific performance.
• cover.
13.
A _____ is a security interest in real property or a deed to real property that is given by the owner as security for a debt owed to the creditor.
Multiple Choice
• note of trust
• mortgage
• quasi-contract
bill of sale
14.
Which of the following is true of price terms in a contract?
Multiple Choice
• A contract is void if price terms are omitted.
• Price terms cannot be determined at a future date.
• A fixed price term is essential for a binding sales contract.
• No contract is created if price terms are not agreed on.
15.
If a debtor defaults and the debtor's surety satisfies the obligation, the surety acquires the right of:
Multiple Choice
• indemnification.
• chattel mortgage.
• primary lien.
• subrogation.
16.
If the seller demands cash, the seller must give the buyer a reasonable amount of time to obtain it.
True or False
False
17.
In Jewish Federation of Greater Des Moines v. Cedar Forrest Products Co., the case in the text, the court held that:
Multiple Choice
• CFP, as a lost volume seller, was entitled to lost profits.
• CFP was entitled to lost profits because Jewish Federation did not act in good faith.
• CFP was not entitled to lost profits because there was no meeting of the minds.
• CFP was not entitled to lost profits because it used the materials for another customer.
18.
Which of the following statements characterizes an implied warranty of fitness?
Multiple Choice
• It is covered under UCC section 402A.
• It has the same tests as those for implied warranty of merchantability.
• Any seller, merchant or nonmerchant, may make this implied warranty.
• The seller relies on the buyer's skill or judgment in making a purchase.
19.
In the case in the text, In re Borden, the court concluded that when an artisan loses possession involuntarily:
Multiple Choice
• the artisan’s security interest still has top priority.
• the artisan always loses the artisan’s lien.
• the artisan always retains the artisan’s lien.
• the artisan does not necessarily lose the artisan’s lien.
20.
Abe took his bicycle to a bicycle shop for repair. By mistake, a sales clerk sold Abe's bike to Leon. This was a sale in the ordinary course of business; neither the clerk nor Leon was aware that the bike belonged to Abe. Can Abe recover his bike from Leon?
Multiple Choice
• Yes, because title was never transferred to the bike shop.
• No, because all sales by a merchant transfer clear title to a good-faith buyer.
• Yes, because Abe never agreed to sell his bike.
• No, because Abe entrusted his bike to the bike shop.
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