Exam 22: Ownership, Risk and Warranties

Imogene takes her diamond solitaire ring to Sparkle Jewelry Shop to have the prongs holding the diamond retipped and have the ring cleaned.The clerk at Sparkle says she will have to leave the ring and that it should be ready in about a week.When Imogene returns in a week to get her ring,she finds out that the ring has been sold.Which of the following is true?

Angela uses fraudulent means to induce Walter to enter a sales contract.Angela obtains a voidable title to the goods.

A contract that requires a seller to deliver goods to the carrier is a

On impulse,you purchase a travel trailer and ask your acquaintance,Max,if you can leave the trailer at the edge of his restaurant's parking lot until you can have a concrete pad built to store the trailer on your property.Max agrees.When you return for the trailer the next week,it is gone and you find out that Max sold it.You can

Only one party can have an interest in particular goods at a particular time.

A gun manufacturer in Helena,Montana agrees to sell guns and ammunition to the ATF in Washington,D.C.The terms of the contract specify that the goods are to be shipped "FOB,Chicago." When does the buyer acquire title and risk of loss?

Explain the concept and significance of identification of goods.Discuss how identification takes place.

Mike sold his car to Beth,who was to pick the car up at Mike's house and pay for it then.In fact,when Beth arrived she discovered Mike's home and the car destroyed by a fire the night before.The risk of loss falls on

In a breach of warranty case,the buyer must

Which of the following would be a breach of the implied warranty of merchantability?

Which of the following is NOTguaranteed under an implied warranty?

The shipping terms,FOB place of destination,indicate that the seller must deliver the goods at the place named and bears the expense and risk of shipping.

Discuss the concept of insurable interest.Indicate the difference between a buyer's and a seller's insurable interest.

A common problem in cases of express warranty is being able to separate statements that create express warranties from statements that do not.Discuss what type of statements create an express warranty and four indications that a statement is likely to create an express warranty.

Crops are considered identified when they are planted.

Garden World orders 120 hand cultivators from Green Thumb,Inc.When the cultivators arrive,they seem fine,so Garden World accepts them.As the stock person is putting the cultivators on display,she notices that the tines are loose on all the cultivators.Garden World returns the cultivators to Green Thumb,but they are lost when the delivery truck slips on an oily spot in the road and drives into a nearby lake.Discuss who bears the risk of loss for the shipment.

Regardless of the language of the contract,title to goods passes to the buyer at the time and place at which the seller physically delivers the goods.

The statute of limitations for breach of warranty under the UCC is

Mason bought a rotisserie in preparation for a party he was planning.When he put a chicken on the rotisserie,it would not rotate,but stayed in one position where it burned the chicken on one side and left it raw on the other.When he returned the rotisserie to the store,the salesperson disclaimed any responsibility because he had never told Mason the rotisserie would rotate the food as it cooked.Does Mason have any recourse?

Inez contracted with Filippo Furnaces Co.for the installation of a new furnace.Inez selected the furnace she wanted,accepting no suggestions from Filippo Furnaces' heating engineer.The furnace operated fine,but it did not heat the entire house.The size of the blower on the furnace was too small to accommodate the third floor of the house.Inez sued Filippo Furnaces Co.for the breach of the implied warranties of merchantability and fitness.What result?