Exam 19: Title to Goods and Risk of Loss

Acceptance of nonconforming goods is a breach of contract by the buyer.

The delivery term "no-arrival,no-sale" can be added to a shipment contract.

The ________ bears the risk of loss during transportation in a destination contract.

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.What was the nature of the contract between Jason and RyBy Toys?

Larry,a merchant seller,contracted with Simon to buy welding equipment.The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14th day from the date of the contract.But Larry could not make the pick up on that date and before he could do so on the 15th day,the warehouse was burned down by miscreants.In this situation,who bears the risk of loss of the goods that were to be received by Larry?

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.According to the entrustment rule,what legal recourse does Steve have to reclaim the watch or collect damages?

Which of the following is true of a contract with the no-arrival,no-sale term?

What is the method of identification of goods specified under UCC guidelines?

Article 2A (Leases)of the UCC establishes rules regarding title and risk of loss for leased goods.

Explain in detail the risk of loss in lease contracts.

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.According to the UCC,which of the following parties holds the risk of loss for the damage caused to the car?

If a document of title is required,title must pass when and where the seller delivers the goods to the buyer.

The UCC allows the title of goods to be passed without its identification.

A holder of goods who is not a seller or a buyer is referred to as a(n)________.

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

Which of the following is an example of delivery of goods without moving them?

The term "Ex-ship" requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

What is the passage of title to goods?

What is the role of a financing statement in a consignment if the consignor files it?

How does the UCC treat goods that were fraudulently obtained?