True/False
Indicate whether the
statement is true or false.
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1.
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The Uniform Commercial Code covers contract for the
sale of goods and services.
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2.
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A security agreement may be filed as a financing
statement.
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3.
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The party who has the risk of loss of the goods in
a sales contract has the right to insure the goods.
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4.
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The UCC establishes a statutory standard of custom
and usage for interpreting contracts.
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5.
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The Uniform Commercial Code is a federal
statute.
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6.
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A hobbyist may be considered a merchant under the
UCC.
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7.
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Replevin is a contractual remedy available under
the UCC
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8.
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All contracts are assignable.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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9.
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To perfect a valid security interest under the UCC
you do not need
a. | Lien | c. | Possession | b. | Attachment | d. | Filing |
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10.
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An example of a destination contract under the UCC
is
a. | FAS (Vessel) | c. | CIF | b. | FOB
(Carrier) | d. | None of the above |
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11.
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A seller under Article II of the UCC may be awarded
replevin
a. | Sometimes | c. | Usually | b. | Always | d. | None of the above |
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12.
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The Uniform Commercial Code is
a. | A State law governing commerce | c. | An international law governing commerce | b. | A federal law governing commerce | d. | A model
act |
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13.
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The person with the highest priority in a secured
transaction is the one who
a. | Attached first | c. | Filed
first | b. | Has a purchase money security
interest | d. | Has a floating lien |
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14.
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Under the UCC the parties to the
transaction
a. | Are bound by the UCC | c. | May vary the terms of their agreement from UCC
rules | b. | Are governed by state law | d. | Are governed by
objective standards |
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15.
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A guarantee to transfer rights to goods
is
a. | An express warranty | c. | An implied warranty | b. | A warranty of
title | d. | A warranty of enforceability |
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16.
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The UCC is
a. | Concerned with the sale of goods valued at over
$500 | c. | Concerned with service
contracts | b. | Concerned with all goods | d. | No concerned with
leases |
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17.
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Article IX of the UCC covers
a. | Real estate | c. | Garnishments | b. | Copyrights | d. | Fixtures |
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18.
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Under the UCC a merchant is
a. | A salesman | c. | An
inventor | b. | A retailer | d. | A
Venetian |
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19.
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In a sales contract, when the seller bears no risk
of loss it is a
a. | Destination contract | c. | Special shipment contract | b. | Consignment contract | d. | COD |
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20.
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Under Article II of the UCC a seller may
not
a. | Withhold delivery | c. | Stop
delivery in transit | b. | Replevy the
goods | d. | Sell the goods |
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