TRUE/FALSE: (Place True or False next to the corresponding question number on the Answer Sheet)

1. If the parties to a sales contract do not agree to the time, place, and manner of delivery of the goods, the place for delivery is the sellers place of business. ______

2. Acceptance of nonconforming goods is a breach of contract by the buyer. ______

3. In a sale on approval, there is no sale unless and until the buyer accepts the goods. _____

4. The measure of damages for nondelivery is the difference between the contract price and

the market price at the time the breach is realized. ______

5. Pre-established damages mentioned in a contract are known as liquidated damages. ____

6. A sellers or lessors statement of opinion or commendation of the goods creates an

express warranty. ______

7. A check is a type of promissory note. ______

8. Security posted by promissory note maker to the lender for repayment of money is known as collateral. ______

9. A person cannot be held contractually liable on a negotiable instrument unless his or her signature appears on it. ______

10. Fraud in the inception is a type of personal defense. ______