Exam 21: Title, Risk, and Insurable Interest

All UCC provisions relating to the passage of title for sales of goods also apply to leases of goods.​

If an owner holds fungible goods as an owner in common, he or she can pass title without actually separating the goods.

In a sale on approval, a buyer takes goods primarily for resale, with a right to return any goods that fail to sell.

Tenants in common are owners with an undivided share of the whole.

When a merchant keeps the goods for the buyer to pick up, the risk of loss passes when the buyer actually takes possession of the goods.

Barley that fills County Grain Co-op's silo is fungible if the barley is

Identification takes place when specific goods are designated as the subject mater of a sales or lease contract.

Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when

Under the UCC, the risk of loss necessarily passes with title.

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, it is assumed to be

If a seller is not a merchant, and the goods are not to be moved, the risk of loss passes to a buyer on tender of delivery.​

When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties.