Question 1

At common law,the risk of loss or damage to goods identified under a contract of sale falls upon:

Accepted Answer

A) the buyer. 
B) the seller. 
C) the party who had title or ownership of the goods at the time of the loss or damage. 
D) the designated party as determined by the court. 
A) the buyer. 
B) the seller. 
C) the party who had title or ownership of the goods at the time of the loss or damage. 
D) the designated party as determined by the court.

Question 2

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Accepted Answer

A) a bailment 
B) a sale on approval 
C) a sale or return 
D) entrusting to a merchant 
A) a bailment 
B) a sale on approval 
C) a sale or return 
D) entrusting to a merchant

Question 3

Inga runs a Swedish health spa in Connecticut.She orders 100 loofah sponges from a company in California.They are sent "F.O.B.Hartford,Connecticut," but they never arrive.What consequence?

Accepted Answer

A) Inga has to pay anyway since it was a destination contract. 
B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. 
C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. 
D) It cannot be determined who has the risk of loss from the information given. 
A) Inga has to pay anyway since it was a destination contract. 
B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. 
C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. 
D) It cannot be determined who has the risk of loss from the information given.

Question 4

A basic tenet of the law,which is expressly stated in the Code,is that a purchaser of goods obtains such title as his transferor had or had power to transfer.

Accepted Answer

A) True 
 B)False

Question 5

Under the CISG:

Accepted Answer

A) loss of, but not damage to, the goods after the risk of loss has passed to the buyer discharges the buyer from the obligation to pay the purchase price. 
B) if the sales contract involves the carriage of the goods and the seller is not obligated to hand them over at a particular destination, risk of loss passes to the buyer when the goods are handed over to the first carrier. 
C) if the sales contract does not involve carriage of the goods, the risk of loss passes to the buyer when the goods are tendered to him. 
D) All of the answers are correct. 
A) loss of, but not damage to, the goods after the risk of loss has passed to the buyer discharges the buyer from the obligation to pay the purchase price. 
B) if the sales contract involves the carriage of the goods and the seller is not obligated to hand them over at a particular destination, risk of loss passes to the buyer when the goods are handed over to the first carrier. 
C) if the sales contract does not involve carriage of the goods, the risk of loss passes to the buyer when the goods are tendered to him. 
D) All of the answers are correct.

Question 6

In a lease,the lessee obtains the right to possess and use the goods for a period of time in return for consideration,but title does not pass.

Accepted Answer

A) True 
 B)False

Question 7

Tender requires that the seller,at a reasonable time:

Accepted Answer

A) put and hold conforming goods at the buyer's disposition. 
B) give notice to the buyer that the goods are available. 
C) keep the goods available for a reasonable period of time. 
D) all of the above. 
A) put and hold conforming goods at the buyer's disposition. 
B) give notice to the buyer that the goods are available. 
C) keep the goods available for a reasonable period of time. 
D) all of the above.

Exam 21: Transfer of Title and Risk of Loss

At common law,the risk of loss or damage to goods identified under a contract of sale falls upon:

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Inga runs a Swedish health spa in Connecticut.She orders 100 loofah sponges from a company in California.They are sent "F.O.B.Hartford,Connecticut," but they never arrive.What consequence?

A basic tenet of the law,which is expressly stated in the Code,is that a purchaser of goods obtains such title as his transferor had or had power to transfer.

Under the CISG:

In a lease,the lessee obtains the right to possess and use the goods for a period of time in return for consideration,but title does not pass.

Tender requires that the seller,at a reasonable time:

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

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Formation and Internal Relations of General Partnerships

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Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

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Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

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Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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