Exam 20: Ownership and Warranties

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

Tuan,Inc.contracted to buy 200 monogrammed blankets from Titex,Inc.Tuan paid for the blankets in advance.Before segregating and monogramming the blankets,Tuan filed for bankruptcy.Tuan will not be able to recover the blankets because:

Baker Furniture sold 50 living room sets to King's Department Store.The parties did not agree on passage of title,but the delivery term was F.O.B.place of shipment.Discuss title and risk of loss regarding the furniture.

Crops are considered identified when they are planted.

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.

To prove an express warranty,some courts require evidence that the buyer relied on the seller's statement.

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?

The economic loss doctrine states that,when the injured party is a corporation and the harm is purely economic,the only remedies available are those under the common law.

A sales representative at Oxtren,Inc orally told the purchasing agent at Wety,Inc.that its industrial saw is exceptional.Which statement is correct concerning the claim that the saw is exceptional?

Sanco contracted to sell 1,000 cases of oil to AMF.The oil is located in a public warehouse,which has issued a warehouse receipt for it.Which of the following is correct?

Oceanside entered into a contract with the seller Old Tennessee,for the purchase of $6,431 worth of plants.The terms were sale and delivery C.O.D.with the express provision of "No Risk to Supplier," and a large logo at the top of papers stating:??"NOTICE:ALL SHIPMENTS TRAVEL AT RISK AND COST OF PURCHASER."??The plants were shipped by an experienced truck common carrier.Upon arrival in New York,it appeared as though some plants were in a poor state because of excessive heat.Although the carrier on its own marked the bill of lading to indicate that the temperature in the truck should be 50 degrees,this was not done for at least a portion of the journey.Oceanside rejected the shipment by writing "rejected" on the back of the trucker's bill of lading.However,the plants were retained "on consignment" at Oceanside's premises.There were no other formal written rejections or official notices of breach or defects given by the buyer to seller at any point prior to trial.Discuss who has the risk of loss.

Sonny had a contract to paint the rides at an amusement park and needed a paint that would protect against extensive wear,potentially harsh weather,and rust.Sonny asked for paint samples from several companies,and selected one supplier based on the quality of the sample.When he received his order,he found that the quality did not match that of the sample.What recourse does Sonny have?