INSTRUCTIONS: ANSWER ANY THREE (3) QUESTIONS

1. With a contract of sale, when will the property in the goods be transferred from the seller to the buyer?
a) As soon as the goods have been paid for
b) As soon as the goods have been delivered
c) As soon as the contract is made
d) As soon as possible

2. What are "unascertained goods"?

a) Unascertained goods are goods that need to be specifically ordered.
b) Unascertained goods are goods that have not been paid for when the contract is made.
c) Unascertained goods are goods that are not usually stocked by the seller and are therefore unusual.
d) Unascertained goods are in effect all goods that are not specific.

3. Which ONE of the following is a correct statement of law? An agent is a person who acts on behalf of
another:
a) To protect a principal’s goods or services
b) To promote the sales of his principal
c) In entering into contracts
d) To improve businesses’ performance

4. Which ONE of the following is correct? As a general rule, in a contract for the sale of goods, the
goods must correspond with:
a) The expectations of the buyer
b) The description is given by the seller or given on behalf of the seller
c) That recognized in the trade.
d) That understood to be the description from a course of dealings with the seller

5. Caveat emptor:
a) is a person who institutes pre-emption suit
b) is the seller who discloses defects in the goods being sold
c) is the buyer who is supposed to be aware of the suitability of the goods
d) is the owner of an empty cave
e) None of these

6. When the objective of a short-term agency has been performed, this results in:
a) The agency automatically ends
b) Both parties may agree to terminate the agency
c) Nothing as the agency continues
d) One party may be allowed to revoke the agreement
7. A contract for the sale of goods includes
a) Sale and an agreement to sell
b) Sale only
c) Agreement to sell only
d) Sales, Leases and hire purchases

8. Consideration can be made for sale under the sale of goods ordinance by way of
a) Money and services
b) Money only
c) Money, service and goods
d) Partly in money and partly in goods

9. One of the implied conditions as to Title in Sale of Goods Act is

a) The seller has the right to sell the goods if it is a sale
 b) The goods should be in merchantable condition
c) The goods should match the sample
d) The goods should match the sample as well as the description

10. One of the statements is wrong as to the duties of the buyer. Underline that statement
a) To accept the delivery of goods when the seller is willing to make the delivery as per the contract
b) To pay the price in exchange for possession of the goods
c) To apply for the delivery of goods
d) Demand delivery of the goods at any time

11. The maxim is “nemo det quod non-habet” which means that:
a) no one can be the owner unless he makes payment
b) no one can give what he has not got.
c) no one can get the title of goods unless given in writing
d) giving is better than taking

12. The fundamental principle of the law on the sale of goods is, that:
a) the seller is bound to point out defects of his goods
b) The seller is not bound to point out defects of his goods.
c) the buyer must inspect the goods to find out if they will suit his purpose.
d) both options at B and C are correct

13. What is meant by the term "specific goods"?

a) Specific goods are goods that are identified and agreed upon at the time a contract of sale is made.
b) Specific goods are goods that have been specifically made to fulfil the buyer's order.
c) Specific goods are goods that have a specific (rather than a general) use.
d) Specific goods are goods that the seller has had to order specifically for the buyer.

14. What are "existing goods"?

a) Existing goods are goods that the seller has leftover from a previous sale.
b) Existing goods are goods that are either owned or possessed by the seller.
c) Existing goods are goods that the seller knows exist but needs to order them specifically for the
buyer.
d) Existing goods are goods that have already been manufactured and therefore exist.

15. Where will you find the definition of a contract of sale of goods?
a) Common law
b) Section 2(1) of the Sale of Goods Act 1962
c) It has not been specifically defined
d) Aldridge v Johnson (1857) 7 E&B 885

16. What are "future goods"?

a) Future goods are goods that the seller needs to order specifically to fulfil the contract of sale.
b) Future goods are goods that the buyer does not take with him/her at the time of purchase but are to
be delivered at a future time.
c) Future goods are goods to be manufactured or acquired by the seller after the making of the
contract of sale.
d) Future goods are goods sold on credit which the buyer can pay for in the future.

17. In a contract for the sale of goods, the goods must be:
a) Of a satisfactory size and shape
b) Satisfactory to the buyer
c) Satisfactory to all involved in its sale
d) Of satisfactory quality
18. Which of the following is not true of a letter of credit?
a) it is a document
b) issued by a bank
c) at the request of the exporter
d) the bank agrees to honour a draft drawn on the importer
e) payable in the designated currency

19. If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known
as _____.
a) revolving
b) irrevocable
c) revocable
d) unconfirmed
e) unclean

20. If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join
the transaction in a _____ letter of credit.
a) revolving
b) irrevocable
c) revocable
d) unconfirmed
e) confirmed

21. Which of the following may be required as additional documents in a letter of credit?
a) commercial invoice
b) insurance document
c) consular invoice
d) certificate of origin
e) all of the above

22. Which of the following documents should necessarily accompany a draft?

a) certificate of origin
b) packing list
c) inspection certificate
d) none of the above

23. A commercial invoice is issued by _____.

a) exporter
b) exporter's bank
c) importer
d) importer's bank
e) confirming bank

24. A document that contains a precise description of the goods is known as a _____.
a) weight list
b) packing list
c) commercial invoice
d) certificate of origin
e) consular invoice

25. In the case of transaction of sale from a seller to the buyer along with goods what else gets transferred?
a) Money
b) Property in the goods
c) Value in the Goods
d) Only goods
26. The transaction of sales to get completed, the transfer of property from seller to a buyer will take place
after the transfer of _________ from buyer to seller.
a) Suggestion
b) Complement
c) Price
d) Goodwill

27. An Agreement to Sell means, where the transfer of the property (ownership) of the goods is...
a) Remained to complete after the completion of certain conditions
b) Completed Not to be done
c) Cancelled
d) Not to be done

28. In the Sale of Goods Act, the word ‘Sale’ means...

a) Transfer of property in existing goods
b) Transfer of property in future goods
c) Transfer of property of unsold goods
d) Transfer of property in sales returned goods

29. In the Sale of Goods Act, the word ‘Agreement to Sell’ means...
a) Transfer of property in existing goods
b) Transfer of property in future goods
c) Transfer of property of unsold goods
d) Transfer of property in sales returned goods

30. In the Sale of Goods Act, transfer of property from seller to buyer means the transfer of...
a) Special Property in Goods
b) General Property in Goods
c) Useful property in Goods
d) Valuable property in Goods

31. In the Sale of Goods Act, transfer of special property means…

a) Property of using the Goods
b) Property of owning Goods
c) Property of reselling the Goods
d) Valuable property in Goods

32. The essential elements of the contract of sales should include________.

a) Two parties (Seller & Buyer)
b) Goods & Price for goods
c) Transfer of General Property
d) All of the above

33. The goods which form the subject-matter of a contract of sale may be movable or immovable...
a) True
b) False
c) Both a and b

34. The term property as used in the Sale of Goods Act, 1962 means general property in goods as
distinguished from the special property...
a) True
b) False
c) Both a and b
35. According to the Sale of Goods Act, 1930, the price of goods means...
a) The value of Goods
b) Only the money equivalent to the value of goods
c) Other goods, which are worth of goods sold
d) None of the above

36. When the goods are boarded (loaded) on a ship or truck, the acknowledgement given by the captain or
any authorized person on the ship/transport agency is called as ...
a) Dock Warrant
b) Warehouse Keeper’s or Wharfinger’s Certificate
c) Delivery Order
d) Bill of Lading

37. When a document is issued by the dock owner, authorizing name of a person, who can receive
possession of the goods is called...
a) Dock Warrant
b) Warehouse Keeper’s or Wharfinger’s Certificate
c) Delivery Order
d) Bill of Lading

38. If a sale is by sample as well as by description, the implied condition is that goods shall match with…
a) Sample
b) Description
c) Both sample and description
d) Either sample or description

39. According to Sale of Goods Act, a condition is the stipulation, which is…
a) Essential to the main purpose of contract of sale
b) Not essential to the main purpose of contract of sale
c) Collateral to the main purpose of contract of sale
d) None of the above

40. According to Sale of Goods Act, a warranties are the stipulation, which is…
a) Essential to the main purpose of contract of sale
b) Not essential to the main purpose of contract of sale
c) Collateral to the main purpose of contract of sale
d) None of the above

41. The main objective of Contract of sales is …

a) Transfer of possession of Goods
b) Transfer of property in Goods
c) Delivery of Goods
d) Payment of Price against received Goods

42. In a contract of sale, unless the goods are ascertained, there is…
a) A sale
b) An Agreement to Sell
c) A Void Agreement
d) An unenforceable agreement

43. When there is an unconditional contract for the sale of specific goods in a deliverable state, the
ownership in the goods passes to the buyer when...
a) The goods are delivered to the buyer
b) The price is paid by the buyer
c) The contract is made
 d) The buyer accepts the Goods

44. If there is no specific agreement between the parties on place of delivery of goods, then the goods sold
must be delivered …
a) At the place where they were at the time of sale
b) Place of buyer
c) At the place as desired by the seller
d) At the place as desired by the seller

45. The voluntary transfer of possession from one person to another is called
a) Transfer
b) Change of possession
c) Delivery
d) None of above

46. Future goods means goods to be manufactured or produced or acquired by the seller
a) In future prescribed time
b) After making of contract
c) Before making of contract
d) None of above

47. The agent having in customary course of business as such agent authority either to sell goods or to
consign goods for the purpose of sale or to buy goods or to raise money on the security of goods is
called
a) Agent
b) Mercantile agent
c) Partner
d) None of above’

48. The goods identified and agreed upon at the time a contract of sale is made are called
a) Ordinary goods
b) Specified goods
c) Scheduled goods
d) None of above

49. A stipulation in a contract of sale with reference to goods which are the subject there of may be
a) A condition
b) A warranty
c) Both (a) and (b)
d) None of above

50. Where an unpaid seller has made part delivery of the goods he may exercise his right________
a) Return on the remainder
b) Of lien on the remainder
c) Sale to any other person
d) None of above

51. What is the usual remedy for late delivery of the goods?
a) The buyer may reject the goods but will not be entitled to any other relief
b) The buyer must accept the goods but may sue for late-delivery
c) The buyer may reject the goods and sue for non-delivery
d) The buyer may reject the goods and sue for late-delivery

52. What is the remedy for breach of warranty of quality?

 a) The expression "breach of warranty of quality" doesn't exist. Implied terms as to quality in the Sale
of Goods Act 1962 are conditions
b) Damages for breach of an innominate term
c) Damages for breach of condition
d) Damages for breach of warranty

53. Which ONE of the following is a correct statement of the law? An agent is a person who acts on
behalf of another:
a) To protect a principal’s goods or services
b) To promote the sales of his principal
c) In entering into contracts
d) To improve a businesses’ performance

54. A contract for the sale of goods is one where:

a) A seller gives goods to another by way of a contract, for safe keeping
b) Goods are passed to another to use in his business
c) A seller transfers or agrees to transfer, the property in goods to the buyer for a money
consideration called the price
d) Goods are loaned under a contract of hire to a customer

55. Which ONE of the following is not correct? A regulated consumer credit agreement is one where:
a) A bank provides a loan or overdraft
b) A consumer purchases goods on hire purchase
c) A creditor provides a personal loan to a debtor
d) A creditor provides a business with credit

56. Which of the following is not the duty of the buyer?

a) The buyer should examine the goods before he accepts them
b) The buyer has the right to give notice of rejection of goods to the seller
c) The buyer has the right to take delivery of goods within reasonable time after the tender of
delivery.
d) Where the property in the goods passes to the buyer, it is his duty to pay the price according to the
terms of the contract.

57. The property in goods in a contract for sale of specific or ascertained goods, passes to the Buyer when
the
a) Contract is made
b) Parties intend the property in goods to pass
c) Price is paid
d) All of the above

58. Where the buyer wrongfully refuses to accept delivery of the goods, the seller may sue for damages
a) for the reasonable charges for the care and custody of the goods
b) for the loss caused by non-acceptance of the goods
c) either (a) or (b).
d) for both (a) and (b)

59. According to Sale of Goods Act, 1962, 'seller' means a person

a) Who only agrees to sell goods
b) Who only sells goods
c) Who sells or agrees to sell goods
d) None of the above

60. Under the Sale of Goods Act, 1962 existing goods are classified as
a) Specified Goods
 b) Ascertained Goods
c) Unascertained Goods
d) All of the above

61. In case of sale of goods

a) General property in the goods must be transferred to the buyer
b) Possession of goods must be transferred to the buyer
c) Special property in the goods must be transferred to the buyer
d) Both (1) and (2)

62. "Contract of Sale' under the Sale of Goods Act, 1962 comprises of contracts which are
a) Executory
b) Concluded
c) Both executory and executed
d) Executed

63. Following is not the document of title

a) railway receipt
b) bill of lading
c) dock warrant
d) none of the above

64. When seller exercises right of lien or right of stoppage of goods in transit and gives notice to the buyer
for payment and buyer did not pay or tender within a reasonable time an Unpaid seller can
a) re-sale the goods
b) cannot resale the goods
c) ask again to the buyer
d) take possession and mark good as bad

65. In a contract of sale of goods, the implied condition as to wholesomeness applies to ______
a) medicines
b) eatables
c) cloths
d) computers

66. X agrees to supply to Y a certain quantity of timber of half-inch thickness. The timber supplied varies
in thickness from one-third inch to five-eight inch. The timber is merchantable and commercially fit
for the purpose for which it was ordered. B rejects the timber. Is his action justified?
a) Yes, Y is entitled to reject the goods
b) No, Y is not entitled to reject the goods
c) Y can claim the damages if the purpose is not solved after using the timber
d) X can ask for the difference amount

67. Implied condition as to quality or fitness does not apply if

a) Buyer discloses to the seller, the exact purpose for which goods are to be bought
b) The buyer indicates to the Seller that the relies on the seller's skill
c) Seller deals in such goods
d) Buyer reserves the right to examine the goods and check its quality

68. When goods are sent on 'sale or return basis' i.e., on approval to a buyer, the property in the goods
passes
a) When the buyer signifies his approval
b) When the buyer pledges the goods without signifying approval
c) When the buyer retains the goods after the expiry of time fixed or reasonable time to return the
goods
 d) When any of the above-stated situations emerge

69. The consideration in a contract of sale is called

a) Price
b) Exchange money
c) Barter money
d) Reward

70. Under the Sale of Goods Act, 1962, the property in goods passes to the buyer
a) When the contract is made
b) When the payment of the price is made
c) on delivery of goods
d) When the parties intend the property in goods to pass

71. According to the Sale of Goods Act 1962, the implied condition is that the goods shall correspond
with
a) Description
b) The sample
c) Either sample or description.
d) Both sample and description

72. As per Sale of Goods Act, a condition is a stipulation

a) Breach of which gives rise to a right to repudiate the contract
b) Which is collateral to the main purpose of the contract?
c) Which is essential for the main purpose of the contract?
d) Both (1) and (3)

73. _________________conditions and warranties are those which have expressly agreed upon by the
parties at the time of the contract of sale and are expressly provided in the contract.
a) Express
b) Implied
c) Payment
d) Terms

74. When a breach of a condition is treated as a breach of a warranty, the buyer can-
a) Repudiate the contract
b) Reject the goods
c) Claim damages
d) None of the above

75. The delivery of goods to ____________ is deemed to be the delivery of goods if the seller does not
reserve the right of disposal of the goods.
a) Carrier
b) Third-party
c) Carrier or wharfinger
d) wharfinger

76. When an unpaid seller, who has exercised his right of lien or stoppage in transit, resells the goods, the
buyer
a) The buyer does not acquire a good title to the goods as against the original buyer
b) The seller does not have a right to sell
c) The buyer acquires a good title to the goods as against the original buyer
d) None of the above

77. When the property in goods has not passed to the buyer, the unpaid seller has a right of
 a) Withholding delivery
b) Stoppage in transit
c) (a) and (b)
d) (a) or (b)

78. The intention of the parties to transfer the property in goods from the seller to the buyer can be
inferred from the
a) Terms of the contract
b) Conduct of the parties
c) Circumstances of the case
d) All the above

79. The Seller of Goods is deemed to be an Unpaid Seller when the........ Of the price has not been paid or
tendered.
a) Whole
b) Part
c) Substantial portion
d) Minimal portion

80. In the case of ..........., the sale may be notified to be subject to a reserve or upset price.
a) Sale by description
b) Sale by auction
c) Sale by sample
d) Sale by estoppel

81. The term "goods" in the sale of goods means

a) specific goods only
b) ascertained goods only
c) ownership
d) subject matter.

82. Under the Sale of Goods Act, 1962, 'delivery' means

a) gratuitous transfer of possession from one person to another
b) involuntary transfer of possession from one person to another
c) the voluntary transfer of possession from one person to another
d) transfer of possession irrespective of whether it is gratuitous, involuntary or voluntary, from one
person to another.

83. Which of the following is an instance of constructive delivery of goods

a) the transfer of the bill of lading
b) attornment by a person in possession of the goods
c) both (a) and (b)
d) only (b) and not (a). A bill of lading is

84. An agency relationship is:

a) contractual.
b) always performed by an independent contractor.
c) consensual.
d) an appointment.

85. Agency by ________ occurs when (1) a person misrepresents himself or herself as another's agent
when in fact he or she is not and (2) the purported principal accepts the unauthorized act.
a) ratification
b) ramification
c) indemnification
 d) indoctrination

86. Apparent agency is also referred to as ________.

a) express agency
b) authorized agency
c) agency by default
d) agency by estoppel

87. A principal owes a duty to ________ the agent for any losses the agent suffers because of the
principal. This duty usually arises where an agent is held liable for the principal's misconduct.
a) ratify
b) rectify
c) indemnify
d) vilify

88. The legal rule of ________ knowledge means that the principal is assumed to know what the agent
knows, even if the agent does not tell the principal certain relevant information.
a) imputed
b) reputed
c) disputed
d) refuted

89. A(n) ________ agency results if a third party entering into a contract knows (1) that the agent is acting
as an agent for a principal and (2) the actual identity of the principal.
a) partially disclosed
b) undisclosed
c) fully disclosed
d) inherently disclosed

90. A(n) ________ agency occurs if the agent discloses his or her agency status but does not reveal the
principal's identity and the third party does not know the principal's identity from another source.
a) fully disclosed
b) partially disclosed
c) inherently disclosed
d) undisclosed

91. A principal accepts an agent's unauthorized contract through ________ of the contract.
a) ratification
b) subrogation
c) ramification
d) subornation

92. Which of the following is not a method of terminating an agency relationship by acts of the parties?
a) the bankruptcy of the principal
b) achievement of agency purpose
c) mutual agreement
d) lapse of time

93. Which of the following is not a method of terminating an agency relationship by operation of law?
a) death of either the principal or the agent
b) mutual agreement
c) the bankruptcy of the principal
d) the insanity of either the principal or the agent

94. For an agency relationship to exist, there must be:

 a) A written agreement, however, made
b) Nothing as an agency relationship can be made verbally
c) A power of attorney
d) A written agreement, drawn up by a solicitor

95. When the objective of a short term agency has been performed, this results in:
a) The agency automatically ends
b) Both parties may agree to terminate the agency
c) Nothing as the agency continues
d) One party may be allowed to revoke the agreement

96. An agency agreement may NOT be created by:

a) Duress
b) Statute
c) Necessity
d) Cohabitation

97. Which of the following is NOT a duty imposed on agents?

a) An obligation to obey lawful instructions.
b) An obligation to maintain all records of agency agreements together and not to keep these secrets
from the principal.
c) An obligation not to delegate the powers the principal has bestowed upon him/her.
d) An obligation to exercise care and skill in his/her activities.

98. In an agency there are:

a) two main parties
b) four main parties
c) three main parties
d) five main parties

99. An agent is under a duty to obey:

a) Any instructions given by the principal
b) All lawful instructions given by the principal
c) All instructions given by the principal.
d) Only those lawful instructions which will reasonably benefit the agency.

100. Which ONE of the following is a correct statement of law? An agent is a person who acts on
behalf of another:
a) To protect a principal’s goods or services
b) To promote the sales of his principal
c) In entering into contracts
d) To improve a businesses’ performance

101. A contract for the sale of goods is one where:

a) A seller gives goods to another by way of a contract, for safe keeping
b) Goods are passed to another to use in his business
c) A seller transfers or agrees to transfer, the property in goods to the buyer for a
d) money consideration called the price
e) Goods are loaned under a contract of hire to a customer

102. In a contract for the sale of goods, the goods must be:
a) Of a satisfactory size and shape
b) Satisfactory to the buyer
c) Satisfactory to all involved in its sale
d) Of satisfactory quality
103. Which ONE of the following is a correct statement of law? An agent is a person who acts on
behalf of another:
a) To protect a principal’s goods or services
b) To promote the sales of his principal
c) In entering into contracts
d) To improve a businesses’ performance

104. A contract for the sale of goods is one where:

a) A seller gives goods to another by way of a contract, for safe keeping
b) Goods are passed to another to use in his business
c) A seller transfers or agrees to transfer, the property in goods to the buyer for a money
consideration called the price
d) Goods are loaned under a contract of hire to a customer

105. In a contract for the sale of goods, the goods must be:
a) Of a satisfactory size and shape
b) Satisfactory to the buyer
c) Satisfactory to all involved in its sale
d) Of satisfactory quality

106. The person which is represented as an agent ______?

a) Middleman
b) Owner
c) None of these
d) Principal