Exam 19: Title to Goods and Risk of Loss

If an owner brings a computer to a store to be repaired and the store accidentally sells it to a customer who is a buyer in the ordinary course of business,the buyer from the store has ownership priority over the original owner.

Once a seller breaches by delivering nonconforming goods,which of the following is true?

In an F.O.B.destination contract,the seller must replace the goods if they are lost in transit.

With letters of credit in international transactions,a bill of lading is issued by the common carrier.

Josh had a computer that needed repair.He took the computer to a used computer dealer that also repaired computers.While talking with the owner,Josh learned that the owner also knew how to repair bicycles.Josh happened to need some repairs done on his bike,so he left it at the computer shop too.A week later,Josh went to pick up his bike and computer.When he got to the store,the owner said he had bad news.He had hired a new employee.The new employee had major difficulties and sold a number of items that were in for repair.He sold both Josh's computer and his bike.The store owner knows who purchased them from the credit card records.In this situation,Josh can recover:

When does risk of loss pass in a sale of goods that does not involve a common carrier:

Which of the following statements regarding identification of goods under the UCC is false?

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

The parties to a contract may decide when title and risk of loss pass,but if the parties do not specifically agree on such a time,the UCC provides rules for them.

Under the UCC,the risk of loss depends on who had title to the goods.

Ralph purchases a car from a minor and subsequently sells it to Jack,another adult who had no reason to know of the previous transaction and who paid full value for the car.Which of the following best describes this situation?

The International Chamber of Commerce has issued the following for rules on letters of credit:

F.O.B.Burlington,Vermont requires the seller to arrange to ship goods and put the goods in the carrier's possession.

Seller contracts to sell goods to the buyer.This was a destination contract.However,the buyer refused to accept these goods and returned them to the seller,even though they were the proper goods under the contract.Before the seller received them,the goods were destroyed by fire.Which of the following best describes this situation?

In a shipment contract,risk of loss passes to the buyer when the goods are delivered to the common carrier.

A famous designer enters into a contract with a boutique store for the delivery of certain clothing valued at $20,000.The boutique sells $10,000 worth of the merchandise within a few months.The remaining merchandise is destroyed within the store,through no fault of the boutique owner.What does the boutique owe the designer?

In a sale or return,risk of loss passes to the buyer when the buyer takes possession of the goods.

In which of the following,does the buyer usually try out the goods for the buyer's own use?

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 not a merchant.Which of the following statements best describes this situation?

In general,what is the effect on risk of loss when a party breaches a contract?