Exam 23: Transfer of Title and Risk of Loss

Except in a finance lease,the risk of loss passes to the lessee in a lease of personal property.

The seller and buyer of goods agree that identification will be made by the seller when it manufactures and separates those particular goods out for the buyer.Identification will actually occur:

When delivery is to be made by physically moving the goods,title passes at the time and place at which the seller completes performance with reference to delivery of the goods.

The buyer and seller of goods may not both hold insurable interests in the same goods at the same time.

Kara ordered 400 yards of blue upholstery fabric from Hamwork Mills.In error,Hamwork Mills shipped 400 yards of red upholstery fabric.In this case,the risk of loss remains with the seller until Kara accepts the red upholstery fabric or Hamwork Mills remedies the defect.

In a transaction between the true owner and the good faith purchaser for value,the law will not disturb the legal title but will rule in favor of the one who has it.

Identification may be made by either the seller or the buyer.

Tom makes pottery in his spare time.Jackie asks if he'd sell her a particular covered bowl.Later that day,he telephones her and says she can have it for $50.She agrees,so he tells her he'll wrap it up for her and it will be ready in half an hour.Six days later,Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks the bowl.Who is liable?

Mark agreed to sell his horse to Henry for $1,000.The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse.Henry paid Mark the money,patted the horse and said,"I'm glad you're mine,you beauty," and drove off.Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild.Has there been a sale?

Community Hospital in Atlanta entered into a contract to buy delicate lab equipment from D & D Company in Denver.The contract states shipping terms as FOB,Denver.While in transit the equipment was damaged beyond repair by the carrier,Fly-by-Nite Air Lines.The carrier is in weak financial condition and refused to pay for the equipment.In this case:

Walter stole a laptop computer and then sold it to his friend Ivan for $100.Ivan has:

If a contract is not clearly a destination or a shipment contract,the law assumes that it is a shipment contract.

Marcie orders a dress for $1,000.Marcie doesn't inspect the dress on arrival and therefore doesn't discover a flaw in the fabric until the day before she is to wear it to her first board meeting as president of Tri-State Engineering.This is a week after the dress arrived.She calls the designer and sends the dress back,but it is lost in the mail.Marcie's insurance would cover $400 of the loss.The designer's insurance would cover $900.Who is liable?

In a sale on approval:

Zander,a seller in Miami,enters into a contract which states that goods are to be delivered to Xavier,a buyer,in New York.Title is to remain with Zander until delivery to Xavier.This is:

In ____ the goods are sold and delivered to the buyer with an option to return them to the seller.

A sale exists when the buyer takes:

A major purpose of the bulk sales provisions of the Code is to protect the seller's creditors.

A basic tenet of the law,as codified in the UCC,is that a purchaser of goods obtains such title as his transferor had or had the power to transfer.

The Code has expanded the rights of good faith purchasers with respect to sales by minors.