diff --git a/lib/abao.coffee b/lib/abao.coffee
index a6a57ec..f85423b 100644
--- a/lib/abao.coffee
+++ b/lib/abao.coffee
@@ -40,7 +40,7 @@ class Abao
       # Parse tests from RAML
       (raml, callback) ->
         if !config.options.server
-          if 'baseUri' in raml
+          if raml.baseUri
             config.options.server = raml.baseUri
         addTests raml, tests, hooks, callback, factory
       ,
diff --git a/test/cli-test.coffee b/test/cli-test.coffee
index 6f5782f..4fea3c8 100644
--- a/test/cli-test.coffee
+++ b/test/cli-test.coffee
@@ -178,6 +178,51 @@ describe 'Command line interface', ->
 
 
   describe 'Arguments with existing RAML and responding server', () ->
+    describe 'when invoked without "--server" option', () ->
+      describe 'when RAML file hasn\'t correct baseUri', () ->
+        before (done) ->
+          ramlFile = "#{RAML_DIR}/no-base-uri.raml"
+          cmd = "#{ABAO_BIN} #{ramlFile} --reporter json"
+
+          execCommand cmd, done
+
+        it 'should exit with status 1', ->
+          assert.equal exitStatus, 1
+
+        it 'should print error message to stderr', ->
+          assert.include stderr, 'no API endpoint specified'
+
+      describe 'when RAML file has correct baseUri', () ->
+
+        before (done) ->
+          ramlFile = "#{RAML_DIR}/single-get.raml"
+          cmd = "#{ABAO_BIN} #{ramlFile} --reporter json"
+
+          app = express()
+
+          app.get '/machines', (req, res) ->
+            res.setHeader 'Content-Type', 'application/json'
+            machine =
+              type: 'bulldozer'
+              name: 'willy'
+            response = [machine]
+            res.status(200).send response
+
+          server = app.listen PORT, () ->
+            execCommand cmd, () ->
+              server.close()
+
+          server.on 'close', done
+
+        it 'exit status should be 0', () ->
+          assert.equal exitStatus, 0
+
+        it 'should print count of tests run', ->
+          assert.equal 1, report.tests.length
+          assert.equal 1, report.passes.length
+
+        it 'should print correct title for response', ->
+          assert.equal report.tests[0].fullTitle, 'GET /machines -> 200 Validate response code and body'
 
     describe 'when executing the command and the server is responding as specified in the RAML', () ->
       before (done) ->
diff --git a/test/fixtures/no-base-uri.raml b/test/fixtures/no-base-uri.raml
new file mode 100644
index 0000000..f485c7a
--- /dev/null
+++ b/test/fixtures/no-base-uri.raml
@@ -0,0 +1,39 @@
+#%RAML 0.8
+
+title: World Music API
+version: v1
+traits:
+  - paged:
+      queryParameters:
+        pages:
+          description: The number of pages to return
+          type: number
+/songs:
+  is: [ paged ]
+  get:
+    queryParameters:
+      genre:
+        description: filter the songs by genre
+  post:
+  /{songId}:
+    get:
+      responses:
+        200:
+          body:
+            application/json:
+              schema: |
+                { "$schema": "http://json-schema.org/schema",
+                  "type": "object",
+                  "description": "A canonical song",
+                  "properties": {
+                    "title":  { "type": "string" },
+                    "artist": { "type": "string" }
+                  },
+                  "required": [ "title", "artist" ]
+                }
+              example: |
+                { "title": "A Beautiful Day", "artist": "Mike" }
+            application/xml:
+    delete:
+      description: |
+        This method will *delete* an **individual song**
diff --git a/test/fixtures/single-get.raml b/test/fixtures/single-get.raml
index 8a223e1..ff0a817 100644
--- a/test/fixtures/single-get.raml
+++ b/test/fixtures/single-get.raml
@@ -1,8 +1,7 @@
 #%RAML 0.8
 
 title: World Music API
-baseUri: http://example.api.com/{version}
-version: v1
+baseUri: http://localhost:3333
 
 /machines:
   get: