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STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
TESTȱ
CHAPTERȱ15
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
1
.ȱAȱbreachȱofȱwarrantyȱisȱnotȱaȱbreachȱofȱcontract.ȱ
2.ȱNewȱdrugsȱcannotȱbeȱmarketedȱinȱthisȱcountryȱwithoutȱFDAȱapȬ
proval.ȱ
3.ȱCompetitionȱisȱtheȱdrivingȱforceȱbehindȱtheȱcreationȱandȱimȬ
provementȱofȱproductsȱandȱservices.ȱ
4.ȱProductȱliabilityȱlawsȱhaveȱincreasedȱinȱrecentȱyearsȱtoȱprotectȱinȬ
juredȱplaintiffs.ȱ
5.ȱAȱwarrantyȱisȱaȱstatementȱaboutȱaȱproduct’sȱqualitiesȱorȱperformȬ
anceȱandȱthereforeȱisȱnotȱgovernedȱbyȱtheȱUCC.ȱ
6.ȱTheȱfederalȱMagnusonȬMossȱWarrantyȱActȱappliesȱonlyȱtoȱwrittenȱ
warrantiesȱonȱcertainȱproductsȱsoldȱtoȱconsumers.ȱ
7
.ȱPuffingȱandȱwarrantiesȱareȱbothȱstatementsȱofȱfact.ȱ
8.ȱAȱwarrantyȱagainstȱinfringementȱbasicallyȱrequiresȱthatȱtheȱgoodsȱ
beȱfitȱforȱtheȱordinaryȱpurposesȱforȱwhichȱsuchȱgoodsȱareȱused.ȱ
9.ȱMerchantabilityȱrequiresȱthatȱanyȱwarrantyȱprotectionȱthatȱisȱcusȬ
tomaryȱinȱtheȱtradeȱbeȱextendedȱtoȱallȱbuyers.ȱ
10.ȱAȱrepudiationȱorȱrenunciationȱofȱaȱrightȱorȱpowerȱtypicallyȱorȱleȬ
gallyȱvestedȱinȱaȱpersonȱisȱaȱdisclaimer.ȱ
ȱ1.ȱȱ ȱ
ȱ2.ȱȱ ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ
ȱ4.ȱȱ ȱ
ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ
ȱ7.ȱȱ ȱ
ȱ8.ȱȱ ȱ
ȱ
ȱ9.ȱȱ ȱ
ȱ
ȱ10.ȱȱ ȱ
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱ
ȱȱ Answers
11.ȱAȱvoluntary,ȱcourtȬenforceableȱagreementȱtoȱstopȱanȱillegalȱorȱ
questionableȱpracticeȱisȱ(a)ȱaȱceaseȬandȬdesistȱorder,ȱ(b)ȱaȱconsentȱ
order,ȱ(c)ȱaȱclassȱaction,ȱ(d)ȱaȱrestitutionȱorderȱ
11._______ȱ
12.ȱȱ TheȱConsumerȱProductȱSafetyȱCommissionȱ(CPSC)ȱreceivesȱreȬ
portsȱaboutȱproductȱfailureȱfromȱ(a)ȱtheȱdistributor,ȱ(b)ȱtheȱmanuȬ
facturer,ȱ(c)ȱtheȱconsumer,ȱ(d)ȱallȱofȱtheseȱ
12._______ȱ
13.ȱȱ Violationsȱofȱtheȱweightsȱandȱmeasuresȱlawsȱareȱpunishableȱbyȱ(a)ȱ
fine,ȱ(b)ȱimprisonment,ȱ(c)ȱbothȱaȱandȱb,ȱ(d)ȱnoneȱofȱtheseȱ
13._______ȱ
14.ȱConsumerȱprotectionȱofȱgoodsȱandȱservicesȱoftenȱbeginsȱwithȱ(a)ȱ
caveatȱvenditor,ȱ(b)ȱclassȱactions,ȱ(c)ȱlicensingȱsuppliers,ȱ(d)ȱmandaȬ
toryȱinspectionsȱofȱallȱbusinessesȱ
14._______ȱ
15.ȱTheȱrelationshipȱthatȱexistsȱbetweenȱcontractingȱpartiesȱasȱaȱresultȱ
15._______ȱ
16.ȱȱ Aȱproductȱliabilityȱsuitȱmayȱbeȱbasedȱonȱ(a)ȱbreachȱofȱwarranty,ȱ
(b)ȱtortsȱofȱfraud,ȱnegligence,ȱorȱstrictȱliability,ȱ(c)ȱbothȱaȱandȱb,ȱ(d)ȱ
noneȱofȱtheseȱ
16._______ȱ
17.ȱȱ Anȱassuranceȱofȱqualityȱorȱpromiseȱofȱperformanceȱclearlyȱmadeȱ
byȱtheȱsellerȱisȱ(a)ȱanȱexpressȱwarranty,ȱ(b)ȱanȱimpliedȱwarranty,ȱ
(c)ȱaȱwarrantyȱofȱtitle,ȱ(d)ȱaȱwarrantyȱagainstȱinfringementȱ
17._______ȱ
18.ȱAnȱimpliedȱwarrantyȱofȱfitnessȱforȱaȱparticularȱpurposeȱarisesȱ
whenȱtheȱbuyerȱ(a)ȱpersonallyȱselectsȱtheȱgoods,ȱ(b)ȱdoesȱnotȱrelyȱ
onȱtheȱskillȱandȱjudgmentȱofȱtheȱseller,ȱ(c)ȱbothȱaȱandȱb,ȱ(d)ȱnoneȱ
ofȱtheseȱ
18._______ȱ
19.ȱȱ Warrantiesȱimpliedȱbyȱlawȱforȱmerchantsȱincludeȱ(a)ȱwarrantyȱofȱ
merchantability,ȱ(b)ȱwarrantyȱagainstȱinfringement,ȱ(c)ȱbothȱaȱandȱ
b,ȱ(d)ȱnoneȱofȱtheseȱ
19._______ȱ
20.ȱSuchȱexpressionsȱasȱ“withȱallȱfaults”ȱorȱ“asȱis”ȱwillȱ(a)ȱexcludeȱallȱ
impliedȱwarranties,ȱ(b)ȱexcludeȱallȱexpressȱwarranties,ȱ(c)ȱbothȱaȱ
andȱb,ȱ(d)ȱnoneȱofȱtheseȱ
20._______ȱ
SECTION III—APPLY LEGAL PRACTICES
21.ȱTheȱsalespersonȱatȱtheȱlocalȱapplianceȱdiscountȱcenterȱconvincedȱCindyȱthatȱifȱ
thereȱwasȱeverȱaȱproblemȱwithȱtheȱcomputerȱthatȱsheȱwasȱaboutȱtoȱpurchase,ȱallȱ
sheȱhadȱtoȱdoȱwasȱreturnȱitȱandȱtheyȱwouldȱgiveȱherȱaȱnewȱone,ȱnoȱquestionsȱ
asked.ȱHeȱevenȱpointedȱoutȱaȱcustomerȱwhoȱwasȱleavingȱtheȱstoreȱwithȱaȱbrandȱ
newȱcomputerȱbecauseȱsheȱhadȱjustȱreturnedȱherȱrecentlyȱpurchasedȱcomputerȱ
claimingȱaȱslightȱproblemȱandȱtheyȱcompletelyȱreplacedȱit.ȱTwoȱmonthsȱlaterȱ
Cindyȱrealizedȱthatȱtheȱcomputerȱsheȱhadȱboughtȱhadȱbeenȱpreviouslyȱreturnedȱ
byȱanotherȱcustomer.ȱIsȱthereȱaȱlawȱagainstȱthisȱpractice?ȱWhatȱshouldȱCindyȱ
do?ȱExplainȱyourȱanswer.ȱ
3-44 Chapter 15 Consumer Protection
ANSWERS
Lessonȱ15—1ȱ
Quiz
ȱ
11.ȱBusinessesȱwhoȱprovideȱdoorȬtoȬdoorȱsellingȱareȱrequiredȱtoȱgiveȱbuyersȱthreeȱ
Practice Activity
1.ȱYes,ȱtheȱceaseȬandȬdesistȱorderȱagainstȱKraftȱshouldȱbeȱenforced.ȱTheȱcourtȱsupȬ
portedȱtheȱFTC’sȱorder.ȱIfȱthereȱwereȱnoȱwatchdogȱtoȱregulateȱadvertisingȱtoȱtheȱ
2.ȱTheȱFTCȱcanȱmonitorȱsuchȱviolationsȱbyȱensuringȱthatȱconsumersȱknowȱtoȱcallȱ
law.ȱOneȱofȱtheȱwaysȱtheȱFTCȱcanȱmeasureȱdamagesȱisȱbyȱnotȱallowingȱdebtȱcolȬ
lectorsȱtoȱhaveȱanyȱofȱtheȱmoneyȱtheyȱcollectȱviaȱunlawfulȱmeans.ȱMuchȱlikeȱnotȱ
Reteach
Enrichment Activity
Chapter 15 Consumer Protection 3-45
Lessonȱ15—2ȱ
Quiz
ȱ
11.ȱAllȱimpliedȱwarranties,ȱincludingȱtheȱwarrantyȱofȱmerchantability,ȱareȱexcludedȱ
12.ȱThereȱisȱnoȱdefectȱinȱtheȱladder,ȱandȱitȱdoesȱcontainȱaȱwarningȱlabel.ȱSilviaȱwasȱ
Practice Activity
1.ȱNo.ȱTheȱcourtȱrejectedȱtheȱSchnebles’ȱcontentionȱthatȱanyȱwarrantyȱwasȱ
breachedȱbecauseȱofȱtheȱlanguageȱcontainedȱinȱtheȱbillȱofȱsale.ȱItȱstatedȱthatȱevenȱ
2.ȱNo,ȱtheȱBlueȱShipȱTeaȱRoomȱshouldȱnotȱbeȱheldȱtoȱhaveȱbreachedȱsuchȱaȱwarȬ
ranty.ȱTheȱcourtȱheldȱthatȱinȱfishȱchowderȱmadeȱNewȱEnglandȱstyle,ȱlargeȱpiecesȱ
ofȱfishȱareȱexpected,ȱandȱinȱlargeȱportionsȱofȱfish,ȱthereȱmayȱbeȱembeddedȱfishȱ
3-46 Unit 3 Chapters 13–15
Reteach
Enrichment Activity
ȱ
ANSWERS TO TEST QUESTIONS
SECTION I
SECTIONȱIIȱ
SECTION III
21.ȱThereȱisȱnoȱspecificȱlawȱconcerningȱthisȱbutȱCindyȱcanȱcontactȱtheȱlocalȱBetterȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
UNITȱ3ȱȱ
CHAPTERSȱ
13–15ȱ
TESTȱAȱ
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ
heȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱt
ȱ
Columnȱ1ȱ
A
.ȱauctionȱ
B
.ȱbaileeȱ
C.ȱgoodsȱbothȱexistȬ
ingȱandȱidentifiedȱ
D
.ȱcaveatȱemptorȱȱ
E
.ȱcaveatȱvenditorȱ
F
.ȱclassȱactionȱ
G
.ȱCODȱ
H.ȱConsumerȱProtecȬ
tionȱSafetyȱComȬ
missionȱ
I
.ȱdisclaimerȱ
J.ȱFederalȱTradeȱ
Commissionȱ
K.ȱwarrantyȱagainstȱ
L.ȱwarrantyȱofȱȱȱȱ
merchantabilityȱ
ȱ
ȱ
Columnȱ2ȱ
1.ȱRequiredȱforȱownershipȱofȱgoodsȱtoȱbeȱ
transferredȱinȱaȱsaleȱ
2.ȱGoodsȱheldȱinȱaȱpublicȱwarehouseȱisȱanȱexȬ
ampleȱofȱthisȱ
3.ȱTheȱsellerȱretainsȱcontrolȱoverȱtheȱpossesȬ
sionȱofȱtheȱgoodsȱuntilȱtheȱpriceȱisȱpaidȱ
4.ȱPublicȱsaleȱtoȱtheȱhighestȱbidderȱ
andȱothersȱsimilarlyȱwrongedȱ
6.ȱItsȱmainȱresponsibilityȱisȱtoȱpreventȱunfairȱ
methodsȱofȱcompetitionȱ
7.ȱLetȱtheȱsellerȱbewareȱ
powerȱtypicallyȱorȱlegallyȱvestedȱinȱaȱperȬ
sonȱ
9.ȱRequiringȱthatȱtheȱgoodsȱbeȱfitȱforȱtheȱordiȬ
naryȱpurposesȱforȱwhichȱsuchȱgoodsȱareȱ
usedȱ
10.ȱGoodsȱdeliveredȱtoȱtheȱbuyerȱfreeȱofȱanyȱ
thirdȱparty’sȱclaimsȱforȱunauthorizedȱuseȱ
ofȱpatent,ȱcopyright,ȱorȱtrademarkȱ
Answers
ȱ1.ȱȱ ȱ
ȱ
ȱ2.ȱȱ ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ
ȱ4.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ
ȱ7.ȱȱ ȱ
ȱȱ
ȱ9.ȱȱ ȱ
ȱ
ȱ
10.ȱȱ ȱ
ȱ
3-48 Unit 3 Chapters 13–15
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
11.ȱUnderȱtheȱUCC,ȱaȱsalesȱcontractȱmayȱbeȱmadeȱinȱanyȱmannerȱsuffiȬ
cientȱtoȱshowȱagreement.ȱ
12.ȱUnlessȱcoveredȱbyȱinsurance,ȱtheȱownerȱofȱgoodsȱlosesȱwhenȱtheȱ
goodsȱareȱdestroyedȱorȱdamagedȱwithoutȱtheȱlegalȱfaultȱofȱanyȱ
person.ȱ
13.ȱAȱfraudulentȱbuyerȱwithȱvoidableȱtitleȱmayȱnotȱtransferȱaȱvalidȱtitleȱ
toȱaȱgoodȱfaithȱpurchaser.ȱ
14.ȱTheȱriskȱofȱlossȱtransfersȱtoȱtheȱbuyerȱasȱsoonȱasȱtheȱsellerȱmakesȱaȱ
tenderȱofȱdeliveryȱprovidedȱtheȱsellerȱisȱnotȱaȱmerchant.ȱ
15.ȱIfȱtheȱgoodsȱareȱdefectiveȱandȱthereforeȱdangerous,ȱtheȱmanufacȬ
turer,ȱintermediateȱsellers,ȱandȱimmediateȱsuppliersȱmayȱbeȱliableȱ
forȱresultingȱharm.ȱ
16.ȱFOBȱisȱaȱshipmentȱtermȱthatȱmeansȱtheȱsellerȱagreesȱtoȱdeliverȱtheȱ
17.ȱCIFȱisȱaȱshippingȱtermȱthatȱmeansȱtheȱcarrierȱwillȱcollectȱtheȱpriceȱ
andȱshippingȱchargesȱuponȱdelivery.ȱ
18.ȱAȱpublicȱsaleȱwhereȱgoodsȱareȱsoldȱtoȱtheȱhighestȱbidderȱisȱaȱbulkȱ
transfer.ȱ
19.ȱAȱcreditȱsaleȱisȱaȱsaleȱwhereȱtheȱpartiesȱagreeȱthatȱtheȱgoodsȱwillȱbeȱ
paidȱforȱatȱaȱlaterȱdate.ȱ
20.ȱTheȱmanner,ȱtime,ȱandȱplaceȱforȱtenderȱareȱdeterminedȱbyȱagreeȬ
mentȱandȱtheȱUCC.ȱ
11.ȱȱ ȱ
ȱ
12.ȱȱ ȱ
ȱ
ȱ
13.ȱȱ ȱ
ȱ
14.ȱȱ ȱ
ȱ
15.ȱȱ ȱ
ȱ
ȱ
16.ȱȱ ȱ
17.ȱȱ ȱ
ȱ
18.ȱȱ ȱ
ȱ
19.ȱȱ ȱ
ȱ
20.ȱȱ ȱ
SECTION III—APPLY LEGAL PRACTICES
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
epresentsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱr
Answers
21.ȱAnȱunconscionableȱcontractȱorȱclauseȱ(a)ȱcontainsȱanȱunforeseeableȱ
obstacleȱtoȱtheȱcontract,ȱ(b)ȱoffendsȱanȱhonestȱperson’sȱconscienceȱ
andȱsenseȱofȱjustice,ȱ(c)ȱimpliesȱhiddenȱtermsȱnotȱrecognizedȱbyȱtheȱ
buyer,ȱ(d)ȱnoneȱofȱtheseȱ
22.ȱIfȱaȱbuyerȱselectsȱandȱagreesȱtoȱbuyȱtheȱgoodsȱinȱtheȱseller’sȱstore,ȱ
theȱtitleȱpassesȱ(a)ȱevenȱifȱpaymentȱandȱdeliveryȱtakeȱplaceȱlater,ȱȱ
(b)ȱwhenȱdeliveryȱisȱmade,ȱ(c)ȱwhenȱpaymentȱisȱmade,ȱ(d)ȱbothȱbȱ
andȱcȱ
21.ȱȱ ȱ
ȱ
ȱ
ȱ
22.ȱȱ ȱ
Unit 3 Tests Chapters 13–15 3-49
3-50 Unit 3 Tests 13–15
SECTION III (Concluded)
Answers
23.ȱSalesȱofȱgoodsȱforȱ$500ȱorȱmoreȱmustȱbeȱevidencedȱbyȱaȱwritingȱtoȱ
beȱenforceableȱinȱcourtȱaccordingȱtoȱ(a)ȱtheȱU.S.ȱConstitution,ȱȱ
(b)ȱU.S.ȱSupremeȱCourt,ȱ(c)ȱtheȱStatuteȱofȱFrauds,ȱ(d)ȱnoneȱofȱtheseȱ
24.ȱInȱsettlingȱaȱdisputeȱwithȱaȱbusiness,ȱaȱconsumerȱmayȱseekȱhelpȱorȱ
adviceȱfromȱ(a)ȱtheȱstateȱattorneyȱgeneral’sȱoffice,ȱ(b)ȱtheȱlocalȱBetȬ
terȱBusinessȱBureau,ȱ(c)ȱtheȱcustomerȱserviceȱdepartmentȱofȱtheȱ
corporationȱinvolved,ȱ(d)ȱanyȱofȱtheseȱ
25.ȱAllȱofȱtheȱfollowingȱareȱexamplesȱofȱunfairȱmethodsȱofȱcompetitionȱ
exceptȱ(a)ȱbaitȱandȱswitch,ȱ(b)ȱcompetition,ȱ(c)ȱconfidenceȱgames,ȱ(d)ȱ
unorderedȱmerchandiseȱ
26.ȱMoneyȱunderȱtheȱcounterȱinȱexchangeȱforȱordersȱorȱindustrialȱesȬ
pionageȱareȱexamplesȱofȱ(a)ȱcommercialȱbribery,ȱ(b)ȱencumbrances,ȱ
(c)ȱinfringements,ȱ(d)ȱpuffingȱ
27.ȱExceptionsȱtoȱtheȱStatuteȱofȱFraudsȱincludeȱ(a)ȱgoodsȱreceivedȱandȱ
acceptedȱbyȱtheȱbuyer,ȱ(b)ȱgoodsȱtheȱbuyerȱpaidȱforȱandȱtheȱsellerȱ
hasȱaccepted,ȱ(c)ȱgoodsȱspeciallyȱmadeȱandȱnotȱsuitableȱforȱsaleȱtoȱ
others,ȱ(d)ȱallȱofȱtheȱaboveȱ
28.ȱGoodsȱunderȱtheȱUCCȱdoȱnotȱincludeȱ(a)ȱautomobiles,ȱ(b)ȱclothing,ȱ
(c)ȱjewelry,ȱ(d)ȱmoneyȱ
29.ȱWordsȱspokenȱduringȱaȱsaleȱthatȱexpressȱtheȱpersonalȱopinionȱofȱ
30.ȱAȱrepudiationȱorȱrenunciationȱofȱaȱrightȱorȱpowerȱtypicallyȱorȱleȬ
gallyȱvestedȱinȱaȱpersonȱisȱa(n)ȱ(a)ȱlemonȱlaw,ȱ(b)ȱconsentȱorder,ȱȱȱȱȱȱȱ
(c)ȱencumbrance,ȱ(d)ȱdisclaimerȱ
23.ȱȱ ȱ
ȱ
ȱ
24.ȱȱ ȱ
ȱ
ȱ
ȱ
25.ȱȱ ȱ
ȱ
ȱ
26.ȱȱ ȱ
ȱ
ȱ
27.ȱȱ ȱ
ȱ
ȱȱ
ȱ
28.ȱȱ ȱ
ȱ
29.ȱȱ ȱ
30.ȱȱ ȱ
SECTION IV—DEMONSTRATE LEGAL IDEAS
31.ȱListȱatȱleastȱfiveȱmethodsȱofȱacquiringȱpropertyȱandȱexplainȱwithȱeachȱmethodȱ
theȱtypeȱofȱpropertyȱinvolved,ȱifȱaȱcontractȱisȱinvolved,ȱifȱownershipȱandȱpossesȬ
sionȱareȱtransferred,ȱandȱwhatȱtheȱevidenceȱofȱtheȱtransactionȱis.ȱ
ȱ
ȱ
ȱ
32.ȱTheȱtrendȱinȱmanyȱstatesȱisȱtoȱholdȱtheȱmanufacturer,ȱwholesaler,ȱandȱretailerȱ
strictlyȱliableȱifȱsomeoneȱisȱinjuredȱbecauseȱofȱaȱdefectiveȱconditionȱinȱtheȱprodȬ
uct.ȱGiveȱfourȱexamplesȱofȱinjuriesȱwhereȱthereȱisȱnoȱliabilityȱorȱwhereȱliabilityȱisȱ
barred.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
UNITȱ3ȱȱ
CHAPTERSȱ
13–15ȱ
TESTȱBȱ
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
ȱȱ1.ȱAȱcontractȱtoȱsellȱisȱaȱcontractȱinȱwhichȱownershipȱofȱgoodsȱtransȬ
fersȱimmediatelyȱfromȱtheȱsellerȱtoȱtheȱbuyerȱforȱaȱprice.ȱ
ȱȱ1.ȱ_____ȱ
ȱȱ2.ȱInȱtheȱbasicȱsalesȱtransaction,ȱtheȱpayment,ȱdelivery,ȱandȱtransferȱofȱ
titleȱtakeȱplaceȱsimultaneouslyȱatȱtheȱseller’sȱplaceȱofȱbusiness.ȱ
ȱȱ2.ȱ_____ȱ
ȱȱ3.ȱInȱsomeȱcases,ȱtheȱresponsibilityȱofȱownershipȱmayȱextendȱtoȱcoverȱ
theȱuseȱofȱtheȱgoodsȱbyȱotherȱpersons.ȱ
ȱȱ3.ȱ_____ȱ
ȱȱ4.ȱIfȱtheȱsellerȱisȱrequiredȱtoȱdeliverȱtheȱgoodsȱtoȱaȱparticularȱdestinaȬ
tionȱandȱisȱallowedȱtoȱuseȱaȱcarrier,ȱtheȱriskȱofȱlossȱdoesȱnotȱpassȱtoȱ
theȱbuyerȱuntilȱtheȱbuyerȱhasȱpossessionȱofȱtheȱgoods.ȱ
ȱȱ4.ȱ_____ȱ
ȱȱ5.ȱTheȱriskȱofȱlossȱfallsȱonȱtheȱbuyerȱuponȱreceiptȱofȱtheȱgoodsȱifȱtheȱ
sellerȱisȱaȱmerchant.ȱ
ȱȱ5.ȱ_____ȱ
ȱȱ6.ȱAnȱexpressȱwarrantyȱisȱnoȱassuranceȱofȱtheȱqualityȱofȱtheȱproduct.ȱȱȱ6.ȱ_____ȱ
ȱȱ7.ȱAnȱimplicitȱwarrantyȱobligationȱimposedȱonȱallȱsellersȱisȱcalledȱanȱ
expressȱwarranty.ȱ
ȱȱ7.ȱ_____ȱ
ȱȱ8.ȱAȱwarrantyȱagainstȱencumbrancesȱdoesȱnotȱensureȱthatȱtheȱgoodsȱ
areȱfreeȱofȱencumbrancesȱatȱtheȱtimeȱofȱtheȱsale,ȱbutȱratherȱthatȱtheyȱ
willȱbeȱfreeȱatȱtheȱtimeȱofȱdelivery.ȱ
ȱȱ8.ȱ_____ȱ
ȱȱ9.ȱȱ Aȱclassȱactionȱallowsȱoneȱorȱseveralȱpersonsȱtoȱsueȱonȱbehalfȱofȱ
themselvesȱandȱmanyȱothersȱsimilarlyȱwronged.ȱ
ȱȱ9.ȱȱ_____ȱ
10.ȱAȱceaseȬandȬdesistȱorderȱisȱanȱorderȱrequiringȱaȱcompanyȱtoȱstopȱ
theȱspecifiedȱconduct.ȱ
10.ȱ_____ȱ
3-52 Unit 3 Tests 13–15
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱȱ Answersȱ
11.ȱȱ Aȱhigherȱstandardȱofȱconduct,ȱlicensing,ȱspecialȱtaxation,ȱandȱ
closerȱgovernmentȱregulationȱareȱrequiredȱofȱ(a)ȱunconscionableȱ
contracts,ȱ(b)ȱcontractsȱofȱadhesion,ȱ(c)ȱmerchants,ȱ(d)ȱbuyersȱ
11._______ȱ
12.ȱOralȱcontractsȱforȱtheȱsaleȱofȱgoodsȱpricedȱatȱ$500ȱorȱmoreȱmayȱ
beȱvalidȱandȱenforceableȱifȱ(a)ȱtheȱbuyerȱreceivedȱandȱacceptedȱ
theȱgoods,ȱ(b)ȱtheȱsellerȱacceptedȱpaymentȱinȱfull,ȱ(c)ȱtheȱgoodsȱ
areȱnonȬresalableȱbecauseȱofȱbeingȱspeciallyȱmade,ȱ(d)ȱallȱofȱ
theseȱ
12._______ȱ
13.ȱȱ Ifȱaȱcontractȱrequiresȱtheȱsellerȱtoȱshipȱtheȱgoodsȱbutȱdoesȱnotȱ
obligateȱtheȱsellerȱtoȱdeliverȱthem,ȱtitleȱpassesȱtoȱtheȱbuyerȱwhenȱ
(a)ȱpossessionȱisȱtransferredȱtoȱtheȱcarrier,ȱ(b)ȱtheȱcontractȱisȱiniȬ
tiallyȱmade,ȱ(c)ȱtheȱgoodsȱareȱdelivered,ȱ(d)ȱpaymentȱisȱmadeȱinȱ
fullȱ
13._______ȱ
14.ȱȱ Overall,ȱconsumerȱlawsȱhelpȱprotectȱagainstȱtheȱproductionȱandȱ
saleȱofȱsubstandardȱorȱdangerousȱconsumerȱgoodsȱandȱprovideȱ
remediesȱforȱpersonsȱinjuredȱasȱwellȱasȱ(a)ȱfixingȱpricesȱtoȱensureȱ
equality,ȱ(b)ȱrequiringȱlicensesȱandȱinspections,ȱ(c)ȱbothȱaȱandȱb,ȱ
(d)ȱnoneȱofȱtheseȱ
14._______ȱ
15.ȱTheȱfederalȱantitrustȱlawsȱandȱtheȱFederalȱTradeȱCommissionȱ
Actȱareȱdesignedȱtoȱpreventȱunfairȱmethodsȱofȱcompetitionȱinȱ(a)ȱ
interstateȱcommerce,ȱ(b)ȱintrastateȱcommerce,ȱ(c)ȱbothȱaȱandȱb,ȱ
(d)ȱnoneȱofȱtheseȱ
15._______ȱ
16.ȱAnȱexpressȱwarrantyȱthatȱobligatesȱtheȱsellerȱtoȱrepairȱorȱtoȱreȬ
placeȱaȱdefectiveȱproductȱwithoutȱcostȱtoȱtheȱbuyerȱandȱwithinȱaȱ
reasonableȱtimeȱisȱ(a)ȱaȱfullȱwarranty,ȱ(b)ȱanȱimpliedȱwarranty,ȱ
(c)ȱaȱlimitedȱwarranty,ȱ(d)ȱaȱwarrantyȱofȱmerchantabilityȱ
16._______ȱ
17.ȱȱ Warrantyȱofȱtitle,ȱwarrantyȱagainstȱencumbrances,ȱandȱwarrantyȱ
ofȱfitnessȱforȱaȱparticularȱpurposeȱareȱallȱ(a)ȱexpressȱwarranties,ȱ
(b)ȱȱimpliedȱbyȱlawȱandȱneedȱnotȱbeȱmentionedȱinȱtheȱcontract,ȱ
(c)ȱwarrantiesȱofȱmerchantability,ȱ(d)ȱnoneȱofȱtheseȱ
17._______ȱ
18.ȱȱ GovernmentalȱactionȱonȱbehalfȱofȱanȱinjuredȱconsumerȱcanȱinȬ
cludeȱ(a)ȱaȱceaseȬandȬdesistȱorder,ȱ(b)ȱaȱconsentȱorder,ȱ(c)ȱrestituȬ
tion,ȱ(d)ȱallȱofȱtheȱaboveȱ
18._______ȱ
SECTION III—APPLY LEGAL PRACTICES
Directions:ȱInȱtheȱspacesȱprovided,ȱwriteȱtheȱword(s)ȱneededȱtoȱmakeȱtheȱsentenceȱaȱ
correctȱstatement.ȱ(anȱexpressȱwarranty,ȱaȱseparationȱagreement,ȱcontractsȱofȱadheȬ
sion,ȱwarrantyȱofȱmerchantability,ȱaȱnoȬfaultȱdivorce,ȱaȱbailee,ȱtheȱmaritalȱconsorȬ
tium,ȱaȱbulkȱtransfer,ȱaȱprenuptialȱagreement,ȱaȱceaseȬandȬdesistȱorder)ȱ
ȱȱ Answersȱ
ȱȱ21.ȱUnconscionableȱcontractsȱinȱwhichȱoneȱpartyȱdicȬ
tatesȱallȱtheȱimportantȱtermsȱareȱcalledȱ__________.ȱ
21.__________________ȱ
22.ȱSometimesȱanotherȱperson’sȱgoodsȱareȱheldȱinȱtrustȱ
forȱaȱspecifiedȱpurposeȱbyȱa(n)ȱȱ .ȱ
22.__________________ȱ
23.ȱȱ Theȱtransferȱofȱallȱorȱaȱmajorȱpartȱofȱtheȱgoodsȱofȱaȱ
businessȱinȱoneȱunitȱatȱoneȱtimeȱisȱa(n)ȱ__________.ȱ
23.__________________ȱ
conductȱisȱ__________.ȱ
25.ȱȱ Anȱassuranceȱofȱqualityȱorȱpromiseȱofȱperformanceȱ
explicitlyȱmadeȱbyȱtheȱsellerȱisȱa(n)ȱ__________.ȱ
25.__________________ȱ
26.ȱȱ Everyȱmerchantȱwhoȱcustomarilyȱdealsȱinȱgoodsȱofȱ
aȱparticularȱkindȱmakesȱtoȱallȱbuyersȱofȱtheȱgoodsȱ
anȱimpliedȱ__________.ȱ
26.__________________ȱ
27.ȱWhatȱwouldȱbeȱconsideredȱaȱcounterofferȱunderȱtheȱ
commonȱlawȱareȱconsideredȱunderȱtheȱUCCȱtoȱbeȱ
__________.ȱ
27.__________________ȱ
28.ȱȱ Individualsȱthatȱdoȱnotȱqualifyȱasȱmerchantsȱinȱaȱ
transactionȱareȱ__________.ȱ
ȱ
28.__________________ȱ
29.ȱAȱreceiptȱthatȱservesȱasȱwrittenȱevidenceȱofȱtheȱ
transferȱofȱownershipȱofȱgoodsȱisȱaȱ__________.ȱ
29.__________________ȱ
30.ȱȱ Aȱcontractȱorȱclauseȱofȱaȱcontractȱwhichȱisȱgrosslyȱ
unfairȱandȱoffendsȱanȱhonestȱperson’sȱconscienceȱ
andȱsenseȱofȱjusticeȱisȱsaidȱtoȱbeȱ__________.ȱ
30.__________________ȱ
ȱȱ19.ȱTheȱagencyȱresponsibleȱforȱmonitoringȱcosmetics,ȱfood,ȱandȱdrugsȱ
isȱ(a)ȱtheȱFoodȱandȱDrugȱAdministration,ȱ(b)ȱtheȱNationalȱInstituteȱ
ofȱStandardsȱandȱTechnology,ȱ(c)ȱtheȱConsumerȱProductȱSafetyȱ
Commission,ȱ(d)ȱtheȱFederalȱTradeȱCommissionȱ
19._______ȱ
20.ȱUnfairȱmethodsȱofȱcompetitionȱcanȱincludeȱ(a)ȱindustrialȱespioȬ
nage,ȱ(b)ȱfraudulentȱtelemarketing,ȱ(c)ȱaȱbutȱnotȱb,ȱ(d)ȱbothȱaȱandȱ
bȱ
20._______ȱ
Unit 3 Tests Chapters 13–15 3-53
3-54 Unit 3 Tests 13–15
SECTION IV—DEMONSTRATE LEGAL IDEAS
31.ȱTheȱFederalȱTradeȱCommissionȱhasȱadoptedȱmanyȱguidelinesȱandȱregulationsȱ
thatȱareȱintendedȱtoȱcorrectȱabusiveȱmethodsȱofȱcompetitionȱbyȱrequiringȱbusiȬ
nessȱtoȱactȱinȱcertainȱways.ȱListȱthreeȱmentionedȱinȱtheȱtext.ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
32.ȱListȱtheȱwaysȱinȱwhichȱriskȱofȱlossȱwillȱtransferȱinȱaȱsalesȱtransactionȱandȱdeȬ
scribeȱwhoȱbearsȱtheȱlossȱunderȱeach.ȱ
ANSWERS TO UNIT 3 TEST A
SECTION I
SECTION II
SECTION III
SECTION IV
31.ȱAnswersȱmayȱvaryȱbutȱshouldȱincludeȱanȱexplanationȱaboutȱanyȱfiveȱofȱtheȱfolȬ
ȱ
32.ȱAnswersȱmayȱvaryȱbutȱshouldȱincludeȱfourȱofȱtheȱfollowing:ȱ(1)ȱThereȱisȱnoȱliȬ
abilityȱifȱtheȱinjuryȱwasȱsufferedȱwhileȱtheȱproductȱwasȱusedȱforȱaȱpurposeȱforȱ
Unit 3 Tests Chapters 13–15 3-55
ANSWERS TO UNIT 3 TEST B
SECTION I
1.ȱFalseȱ
SECTION II
SECTION III
SECTION IV
31.ȱAnswersȱmayȱvaryȱbutȱshouldȱincludeȱtheȱfollowingȱinformation:ȱ(1)ȱWouldȬbeȱ
creditorsȱmustȱexplainȱtoȱtheirȱintendedȱborrowersȱtheȱmethodsȱofȱfiguringȱfiȬ
32.ȱAnswersȱmayȱvaryȱbutȱshouldȱincludeȱtheȱfollowingȱinformation:ȱsellerȱshipsȱbyȱ
carrier—riskȱofȱlossȱpassesȱtoȱbuyerȱatȱdestination,ȱuponȱtenderȱofȱdelivery;ȱ
