Exam 19: Title to Goods and Risk of Loss

Goods that are part of a larger mass of goods are identified when the specific merchandise is designated.

Article 2 of the Uniform Commercial Code establishes precise rules for determining the passage of title in sales contracts.

Thomas signed a sales contract with Bricklay's, a firm that supplies bricks for private individuals.The contract specified the type and amount of bricks needed, and that Thomas would pick up the bricks from the Bricklay's warehouse 15 days later.Thomas received a document of title, but failed to pick up the goods on the stipulated date.In this scenario, at what point of time is the title to goods passed over to Thomas?

A holder of goods who is not a seller or a buyer is referred to as a(n)________.

The term ________ refers to a type of sale in which there is no actual sale unless and until the buyer accepts the goods.

What kinds of goods are termed as future goods?

A seller has voidable title interest to goods if he or she obtained the goods through fraud.

Robert steals a truckload of plasma televisions that belong to Karson Electronics Store in an armed robbery.He then resells it to Stu-Mart, who is unaware of the stolen nature of the goods.Karson Electronics Store then traces the plasma televisions to Stu-Mart.Robert is also arrested for the theft.Which of the following is true for Karson Electronics' legal course for reclaiming the televisions or damages?

In a lease transaction, the title to the leased goods passes to the lessee.

In a destination contract, the seller is required to replace any goods lost in transit.

Which of the following is a difference between a sale or return contract and a sale on approval contract?

In a destination contract, title passes to the buyer when the seller tenders delivery of the goods at the specified delivery address.

Which of the following is true for the passage of title in a contract requiring a document of title?

Kenneth purchased a car from his local dealership, Quartent Cars.However, since the car was not available in the color that Kenneth favored, the sales contract stipulated that Kenneth could immediately pick up the car from a nearby warehouse it was housed in.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson around a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire in the warehouse. -What role does Mr.Henderson fulfill in the contract?

A shipment contract requires the seller to ship the goods to the buyer via a common carrier.

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. -What kind of title did Jonathan hold over the watch when he fraudulently bought the watch?

What is the method of identification of goods specified under UCC guidelines?

How does the UCC treat goods that were fraudulently obtained?

If no document of title is required, title only passes at the time and place of delivery.

A consignment is treated as a sale or return contract under the UCC.