Exam 18: Transfer of Title and Risk in Sales Contracts

If the owner entrusts goods to a merchant who deals in goods of that kind, the merchant does not have the power to transfer the entruster's title to anyone who buys in the ordinary course of business.

Documents that show ownership are called documents of .

What is the essential element in determining who bears the risk of loss of goods?

In a sale or return contract, the cost and risk of return is borne by the seller.

The right of ownership of property or evidence of ownership is called title. ​

Who bears the risk of loss of damage to unidentified goods?

Which of the following is an example of a consignment?

​ Which of the following best describes the term "title"?

In an FOB contract, the seller bears the risk of loss until the goods are delivered to the FOB point designated.

In the event of goods damaged through no fault of either the buyer or the seller, the party with control over the goods bears the risk of loss.

Generally, people can sell only such interest or title in goods as they possess.

A sale on approval and a sale or return are two names for the same transaction.

Which of the following is true of a shipment contract?

A buyer has a property interest in goods when the seller indicates that certain goods are the ones to be delivered to the buyer under the contract.

When goods are sold at an auction in separate lots, each lot is considered a separate transaction.

Which of the following is true of a sale by entrustee?

Give examples of some documents of title. What is their function? ​

An insurable interest may arise when a party has sufficient economic interest in the transaction to entitle them to insure the property involved.

A sale on approval is a completed sale with the right of the buyer to return the goods and thereby set aside the sale.

When might a seller retain its right to possession of goods after delivery to a carrier?