Exam 19: Title to Goods and Risk of Loss

A person with voidable title to goods can transfer the goods title to a good faith purchaser for value.

A(n)________ involves the seller entrusting possession of goods to a buyer on a trial basis.

Common law places the risk of loss of goods on the party who held title.

A(n)________ is an actual piece of paper,such as a warehouse receipt or bill of lading,which is required in some transactions of pickup and delivery of sold goods.

Which of the following is true for the passage of title in a contract requiring a document of title?

________ is a shipping term in a contract that requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

An entrusted merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business.

In a sale on approval,the risk of loss and title to the goods remain with seller until the buyer's acceptance.

Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knell's until it is repaired.The watch store repairs the watch,but then sells it to Kevin,who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan,who is unaware of the stolen nature of the watch.What kind of title did Kevin hold over the watch when he fraudulently bought the watch?

Jason orders one hundred remote-controlled toy cars from RyBy Toys.In the contract,it is stipulated that RyBy Toys will transport the toy cars via FlyByNight,a national carrier service.RyBy Toys makes the arrangements and hands over the toys to FlyByNight without the remote-controllers.In the event that the goods are destroyed in transit,which of the following parties would bear the risk of loss as per the sales contract?

The term ________ refers to a type of sale in which there is no actual sale unless and until the buyer accepts the goods.

Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knell's until it is repaired.The watch store repairs the watch,but then sells it to Kevin,who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan,who is unaware of the stolen nature of the watch.Who can legally claim ownership over the watch in court?

A title for goods obtained by a seller through fraud,impersonation,or a dishonored check is referred to as a(n)________.

Kenneth purchased a car from his local dealership,Quartent Cars.However,since the car was not available in the color that Kenneth favored,the sales contract stipulated that Kenneth could immediately pick up the car of his preferred color from a nearby warehouse.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire at the warehouse.If Mr.Henderson had refused the document of title provided by Kenneth,who would have borne the risk of loss to the car?

In a destination contract,when is the title to the goods considered to have passed to the buyer?

Kenneth purchased a car from his local dealership,Quartent Cars.However,since the car was not available in the color that Kenneth favored,the sales contract stipulated that Kenneth could immediately pick up the car of his preferred color from a nearby warehouse.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire at the warehouse.What role does Mr.Henderson fulfill in the contract?

In an F.O.B.point of shipment,the buyer bears the risk of loss while the goods are in transit.

Goods that are part of a larger mass of goods are identified when the specific merchandise is designated.

Which of the following contracts is an example of future goods?

C.&F.is a pricing term that means that the price includes the cost of the goods and the costs of insurance and freight.