Business Law II BA 304-01: N/A
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Chapter 22 - Legal Aspects of Supply Chain Management - Review

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1) The storage of goods in a warehouse and the shipment of goods by a common carrier are examples of special bailments.

2) A warehouser that holds itself out to serve the public generally without discrimination is called a public warehouser.

3) The common-law rights and duties of a warehouser, in the absence of modifying statutes, are for the most part those of a bailee in an ordinary mutual-benefit bailment.

4) A warehouser is a bailee.

5) A warehouser may issue a negotiable or nonnegotiable receipt.

6) A warehouser is liable for damaged goods if damage is caused by the warehouser's negligence.

7) The rights of a holder of a warehouse receipt depend on whether the receipt is negotiable.

8) A purchaser of a nonnegotiable warehouse receipt acquires only the rights and title of the transferor.

9) The major purpose of field warehousing is to create warehouse receipts that the owner can pledge as security for loans.

10) The rights and duties of warehousers are regulated by the UCC.

11) A public warehouser has a lien against the goods stored for reasonable costs incurred from the storage.

12) A document of title is a document that in the regular course of business is treated as adequately evidencing ownership rights.

13) The purchaser of a negotiable warehouse receipt has greater protections than the purchaser of a nonnegotiable warehouse receipt.

14) A negotiable warehouse receipt states that the goods received will be delivered to the bearer or to the order of any named person.

15) General contract law determines whether a limitation clause is a part of the contract between the warehouser and the customer.

16) Bills of lading for intrastate shipments are governed by the UCC, while those for interstate shipments are regulated by the Federal Bills of Lading Act.

17) A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.

18) The major purpose of field warehousing is to create warehouse receipts that the owner can pledge as security for loans.

19) When a carrier accepts goods for land shipment, it ordinarily issues to the shipper a bill of lading.

20) Intrastate bills of lading are regulated by the: Uniform Commercial Code.

21) A transferor makes certain implied warranties to the transferee when a bill of lading is transferred. These warranties are that the bill of lading is genuine, that its transfer is rightful, and that the transferor has no knowledge of any defects.

22) A common carrier of goods has the right to make reasonable and necessary rules for the conduct of its business, charge a rate that enables a fair return, and charge demurrage.

23) A common carrier's lien on goods that it transports includes demurrage, costs of preserving the goods, and costs of sale to enforce the lien.

24) A common carrier must receive and carry proper and lawful goods of all persons who offer them for shipment, furnish adequate facilities, and follow the instructions of the shipper.

25) When goods are delivered to a common carrier for immediate shipment and while they are in transit, the carrier normally liable for any loss or damage to the goods.

26) A common carrier transporting goods under a COD shipment may not make delivery without first receiving payment.

27) If a common carrier delivers goods to the wrong person, the carrier is liable for breach of contract and for the tort of conversion.

28) A common carrier transporting goods under a COD shipment is liable if it takes a check in payment and the check bounces.

29) A factor is a consignee.

30) A sale by a factor can pass title to goods from the consignor to the purchaser.

31) When consigned goods are sold by a factor the sale passes the title of the owner to the buyer.

32) The legal definition of a guest of a hotel requires that the person is a transient.

33) The relationship of guest and hotelkeeper ends when the guest leaves or ceases to be a transient.

34) A hotelkeeper's lien on the baggage of a guest is terminated when the hotel delivers the baggage to the guest, the guest pays the hotel bill in full, and the hotelkeeper converts the baggage of the guest. 35) At common law, a hotelkeeper was liable for the property of a guest.

36) If no express agreement regarding hotel charges has been made, a hotelkeeper has a lien on the baggage of guests for the reasonable value of the accommodations furnished. 37) A warehouse is an entity engaged in the business of storing the goods of others for compensation.

38) Public warehouses are entities that serve the public generally without discrimination.

39) Field warehousing are stored goods under the exclusive control of a warehouse but kept on the owner's premises raather than in a warehouse.

40) The three types of carriers are common, contract, and private.

41) A private carier is owned by the shipper. A company such as Walmart.

42) A contract carrier transports on the basis of individual contracts that it makes with each shipper.

41) A factor is a bailee to whom goods are consigned for sale.

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