Exam 20: Title, risk, and Insurable Interest

Both the buyer and the seller can have an insurable interest in iden?tical goods at the same time.

Under a shipment contract,the risk of loss passes to the buyer when the goods are delivered to the carrier.

Twyla buys a Voracious-brand bicycle from U-Pik-It Bike Store,which agrees to keep the bike for Twyla until she picks it up.Before Twyla gets the bike,a fire destroys the store and the bike.The loss of the bike is suffered by

Essen Corporation buys from Fallow Farms,Inc.,a rice crop that Fallow plans to plant and harvest during the next growing season.Essen plans to sell the rice to Gourmet Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex?ists in

The UCC has replaced the common law concept of title in part with the concept of risk of loss.

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

Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC).CCC mistakenly ships denim jackets,which Town re?jects and returns via Valu Transport,Inc.During the return,the jack?ets are lost.The loss is suffered by

When a buyer breaches a contract,the risk of loss immediately shifts to the buyer.

A seller has an insurable interest in goods as long as the goods are in existence.

If the tender or delivery of goods is so nonconforming that the lessee has the right to reject them,the risk of loss remains with the lessor until cure or acceptance.

Crest Jewelers buys diamonds from Paramount Gems to resell with the right to return the unsold stones in lieu of payment.This is

Wild Alaskan sockeye salmon that fill the hold of Dexter's fishing boat are fungible if the fish are

Dragonaire Corporation contracts with Excel Trucking Company to take goods to Fly-By Airlines,Inc.,with Fly-By to transport the goods to a Geo Storage Company warehouse.Excel,Fly-By,and Geo each acknowl?edge possession of the goods by a document of title.Excel,Fly-By,and Geo are

Harley's Home Store buys furniture from Relax-a-by Furniture,Inc.The parties agree that the furniture will be shipped "F.O.B.Relax-a-by's ware?house" to Harley's via Jiffy Shipping Corporation.The furniture is lost in transit.The loss is suffered by

In a sale or return,title and risk of loss remain with the seller until the buyer ac?cepts the goods.

Open Road Showroom sells new and used motorcycles.Some of the motorcycles are held on consignment,including six consigned by Pedro Cycles,Inc.Like most consignments,Open Road's deal with Pedro Cycles is

Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company.Savory identifies the goods.Before they are shipped to Pie Sales,an insurable interest in the goods exists in

A seller with voidable title can transfer good title to a good faith purchaser for value.

Suki leaves a Update-brand watch at Timepiece Sales & Repair to be fixed.Timepiece sells the watch to Vera,who does not know that the watch belongs to Suki.Suki can recover from

Finished Furnishings,Inc.,agrees to lease an Oak Top-brand desk to Research Resources,Inc.(RRI),which agrees to pick it up at Streetside Warehouse.Before RRI retrieves the desk,it is stolen.The loss is suf?fered by