Exam 19: Title to Goods and Risk of Loss

A seller contracted to sell goods to the buyer.The goods were to be held by the seller until the buyer could pick them up.The seller informed the buyer that the goods were ready to be picked up.Several days later,before the buyer could pick up the goods,the goods were destroyed by fire.The seller is a merchant.Which of the following statements best describes this situation?

When a seller breaches a contract for the sale of goods by delivering nonconforming goods,the risk of loss:

If no document of title is needed,and the goods are identified at the time of contracting,title passes at the time of contracting.

Under the UCC,an entrusting of goods to a merchant who deals in that kind of goods gives the merchant:

A buyer and seller contract for the sale of certain goods,currently in the seller's possession.The contract requires that the goods be delivered by the seller to the buyer's place of business.Title of these goods passes to the buyer when:

To whom can a thief pass good title to stolen goods?

Unborn animals are identified when they are conceived.

The general rule for passage of title is that title passes when the buyer acquires possession of the goods.

Mary runs a ski shop at a popular ski resort.She is approached by Sandy who has several hundred ski hats she would like Mary to buy for her shop.These hats are very funky and artistic.From Mary's experience,she believes that they will either be a big hit and will sell out quickly,or people will look at them and say,"how interesting" and move on.Mary says she does not want to be stuck with a bunch of the hats.Mary says that she will buy them,but wants Sandy to agree to take any back at the end of the season if they didn't sell and Mary decides to not keep them until the following season.This arrangement is:

Frank is a secondhand furniture dealer.Frank goes to yard sales early every Saturday morning in search of items for his store.One Saturday,Frank finds several items that he likes at one sale.One item is a large,heavy leather sofa that he cannot take with him because it won't quite fit into his van.He arranges with the seller to return that evening when he could borrow a truck and get the sofa.Unfortunately,there was a huge sudden downpour in the late afternoon,the seller could not move the sofa inside,and it was ruined.Who bears the risk of loss?

When a thief sells stolen goods to someone who does not know that they were stolen and has no reason to know that they were stolen,the buyer receives what kind of title?

Title for goods cannot pass before the goods are identified to the contract.

Title to goods may pass from the seller to the buyer before the goods are identified to the sales contract.

A seller contracted to sell lumber to the buyer.The contract was a shipment contract and the goods were to be shipped by common carrier.The lumber was destroyed by fire before the common carrier delivered the lumber to the buyer.Which of the following statements best describes this situation?

If the parties do not have a specific agreement regarding the assessment of the risk of loss,the UCC mandates who will bear the risk.

In a noncarrier case,under which of the following sales will risk of loss pass upon tender of delivery?

The unborn young of stock animals are considered future goods.

If a seller delivers nonconforming goods to a buyer and the buyer rejects them,the risk of loss remains on the seller until either the defect is cured or the buyer accepts the nonconforming goods.

A seller and buyer have just agreed that the buyer will purchase 1,000 of the widgets from the thousands that the seller has in its warehouse.The buyer will pick them up at the seller's warehouse.The day before the buyer is to pick them up,the seller's employee sets the 1,000 widgets aside.What is the significance of setting the buyer's widgets aside?

The issuing bank for a letter of credit is called the correspondent bank.