Exam 20: Title, risk, and Insurable Interest

Marine Recreation,Inc.,allows Nels to take a Marine Recreation boat for a "test run." Nels tries the boat for a few hours,returns,and buys it.This is

Leasing Equipment Corporation (LEC)agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be

A consignment is treated as a sale or return and governed by Article 2.

If a buyer accepts a shipment of goods and later discovers a defect,acceptance can be revoked.

If an owner holds fungible goods as a tenant in common,he or she cannot pass title to the goods without the other owners' acquiescence.

If a sale involves crops that are to be harvested within twelve months,iden?tification takes place when the crops are planted.

In the following situations,two parties claim the same goods.Who is most likely to prevail in each circumstance? Explain. (a)Olan steals Phil's television set and sells it to Quincy,an innocent purchaser,for value.Phil learns Quincy has the set and demands its return. (b)Riley takes his television set for repair to Silky,a merchant who sells new and used television sets.By accident,one of Silky's employees sells the set to Tuna,an innocent purchaser-customer,who takes possession.Riley wants his set back from Tuna.

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

If a sale involves unborn animals to be born within twelve months after contracting,identification takes place when the animals are born.

Fungible goods are goods that can be delivered only by transport.

Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics,Inc.The hard drives,which Retail Electronics ex?pressly requires to have certain amounts of memory,are to be shipped "F.O.B.Retail Electronics distribution center in Memphis,TN." When the drives arrive,Retail Electronics rejects them and informs Quality Computer,claiming that the drives do not conform to Retail Electronics' memory re?quirement.A few hours later,the drives are destroyed in a fire at Retail Electronics' distribution center.Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?

Uri sells 100 cases of vitamins to Wanda,but before she takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Laraby,a representative for Merchandise Shipping Company,delivers a bill of lading to Caitlin,the owner of Dockside Warehouse.A bill of lading is

Matrix Material Corporation in New Jersey sells fifty tons of fabric to Natural Fit Clothing,Inc.,in Ohio,"F.O.B.New Jersey." Matrix arranges with Outbound Truckline to transport the goods.The cost of the transport will be paid by

When a seller keeps the goods for pickup,if the seller is a merchant,the risk of loss passes to a buyer on tender of delivery.

Delicioso Tea Company and Savory Stores,Inc.,enter into a contract for a sale of organic tea.The contract includes the term "F.O.B.River City," which is Savory's location.This means that the contract is

Catchy Gadgets Corporation and Discount Outlets,Inc.,enter into a contract for a sale of kitchenware.The contract requires Catchy to deliver the goods to Rapido Carrier Company for transport to Discount's warehouse.Risk of loss passes to Discount when

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.

Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by

If a lessor is a merchant,the risk of loss passes to a lessee on the lessee's receipt of the goods.