Exam 19: Title to Goods and Risk of Loss

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

________ is a shipping term in a contract that requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

In a sale or return contract, the buyer has the option of returning all the goods to the seller.

The real owner cannot reclaim goods from a good faith purchaser.

Jason orders a hundred remote-controlled toy cars from Ryby Toys.In the contract, it is stipulated that RyBy Toys would transport the toy cars via FlyByNight, a national carrier service.RyBy Toys makes the arrangements and hands over the toys, minus the remote-controllers, to FlyByNight, to be delivered to Jason. -In the event that the goods are destroyed in transit, which of the following parties would bear the risk of loss as per the sales contract?

If a document of title is required, title passes when and where the seller delivers the goods to the buyer.

In the case of an ordinary lease, if the lessor is a merchant, the risk of loss remains with the lessor even after the lessee receives the goods.

Which of the following is true of a contract with the no-arrival, no-sale term?

Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knells' until it is repaired.The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch. -According to the entrustment rule, what legal recourse does Steve have to reclaim the watch or collect damages?

In an F.O.B.point of shipment, the buyer bears the risk of loss while the goods are in transit.

Common law places the risk of loss of goods on the party to whom the title of goods were to be passed.

In an F.A.S.port of shipment, the buyer bears the shipping costs and the risk of loss during transport.

In a shipment contract, when is the title to the goods considered to have passed to the buyer?

________ refers to an arrangement in which a seller delivers goods to a buyer to sell on his or her behalf.

In which of the following cases is a buyer in breach of a sales contract?

A consignment deal would be an example of a(n)________.

Jason orders a hundred remote-controlled toy cars from Ryby Toys.In the contract, it is stipulated that RyBy Toys would transport the toy cars via FlyByNight, a national carrier service.RyBy Toys makes the arrangements and hands over the toys, minus the remote-controllers, to FlyByNight, to be delivered to Jason. -What was the nature of the contract between Jason and RyBy Toys?

Nebula Crystals, a firm in New York that manufactures crystal figurines, was contracted by Ruth from Florida to deliver a thousand such crystal figurines.The contract required the firm to deliver and tender the goods alongside the vessel SS Dew Express at the New York harbor.Which of the following shipment term expresses such conditions?

Which of the following contracts is an example of future goods?

Jason orders a hundred remote-controlled toy cars from Ryby Toys.In the contract, it is stipulated that RyBy Toys would transport the toy cars via FlyByNight, a national carrier service.RyBy Toys makes the arrangements and hands over the toys, minus the remote-controllers, to FlyByNight, to be delivered to Jason. -Which of the following represents an instance of breach of contract?