Powers Sells 5,000 Insulators to Falconbury and Issues a Negotiable

question 62

True/False

Powers sells 5,000 insulators to Falconbury and issues a negotiable document of title for the goods.The insulators are stored in the Southside Warehouse.When Powers discovers that Falconbury is insolvent, he may effectively stop delivery of the goods by notifying Southside not to deliver the goods to Falconbury.

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Definitions:

Goods

Objects or materials that are produced for sale or exchange in the market, generally physical and tangible in nature.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against them.

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties involved to their positions before the contract was made.

Contract of Adhesion

A standard-form contract prepared by one party to be signed by another party in a position of weaker bargaining power, often not negotiable.