Exam 19: Title to Goods and Risk of Loss

When the seller breaches,the risk of loss often passes to the buyer sooner than it otherwise would.

In a lease transaction,title to the leased goods remains with either the lessor or a third party.

Theona Thief stole an expensive watch.Theona then sold it through the classified ads to Andy.Andy had no reason to know it had been stolen.Andy took it to a watch dealer to be cleaned and appraised.He left it at the dealer on May 2,and he was told it would be ready on May 6.On May 8,an employee at the watch store sold the watch to Billy.On May 10,Valerie Victim notices the watch on Billy's wrist and demands its return.Who gets the watch?

Seller agrees to sell and deliver goods to the buyer.The terms were F.O.B.destination.The goods were delivered to the common carrier,but were destroyed in transit.Both parties have insurance policies that will cover the loss,if they have an insurable interest.Which of the following statements best describes this situation?

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

If goods are held by the seller to be picked up by the buyer,the risk of loss passes to the buyer upon "tender of delivery," if the seller is a merchant.

When consumers enter into contracts to purchase goods that will be delivered by common carrier,should the seller be required to insure the item until it reaches the purchaser? Many consumers are not aware of risk of loss rules and would be surprised to know that they must pay for an item that never reaches them.Given the increasing number of consumer purchase contracts over the Internet that involve a carrier,should such a rule be implemented,or should the parties be free to contract as they wish?

For which of the following does the risk of loss shift to the buyer upon the buyer taking possession?