Exam 21: Title,risk,and Insurable Interest

Identification takes place when specific goods are designated as the subject mater of a sales or lease contract.

A seller with voidable title has the power to transfer good title to a good faith purchaser for value.

Johan steals Krispin's car and sells it to Lemar.Krispin can recover the car from Lemar

Generally,all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

When a seller keeps the goods for pickup,if the seller is not a merchant,the risk of loss passes to a buyer on tender of delivery.

Megan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when

With a bill of lading,Interstate Transport Company acknowledges possession of certain goods and contracts to deliver them.Interstate Transport is

The contract term "free on board" indicates that the selling price of goods includes transportation costs to the specific F.O.B.place named in the contract.

When a bailee is holding goods that are to be delivered under a contract without being moved,the risk of loss cannot pass to a buyer.

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers.Household Appliance will have an insurable interest in the players as long as

The contract term "delivery ex-ship" means that the risk of loss does not pass to the buyer until the goods are properly unloaded from the ship or other carrier.

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp,Inc.Unless the contract states otherwise,it is assumed to be

Gas & Wood Stove Shop receives Hearthwarm-brand stoves from Independent Dealer,Inc.,under a sale or return agreement.While the stoves are in Gas & Wood's possession,title is held by

Business Banners,Inc.,and Cam's Auto & Truck Sales Dealership enter into a contract for a sale of thirty advertising banners emblazoned with Cam's logo.The terms do not explicitly or clearly indicate whether it is a destination or shipment contract.A court would normally presume that it is

Foster contracts with Golf Carts Unlimited,Inc.to buy five golf carts.The contract lists the five carts as GC001,GC002,GC003,GC004,GC005.Identification

Big Beef,Inc.raises calves to sell.Big Beef breeds its cows in April,and the cows calve in February of the following year.In January,Andrea contracts with Big Beef to buy fifty calves.Identification takes place in

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing,Inc.The pumps are stored in Restorers Warehouse.Under the terms of the order,Quality must give Pipes & Culverts a warehouse receipt for the goods,which the buyer will then pick up.Title to the goods passes to Pipes & Culverts when

QuickFreeze Storage,a bailee,holds goods for Restaurant Purveyor,Inc.,which has contracted to sell the goods to Seafood Dining Company.The goods are to be delivered without being moved.The risk of loss will pass to Seafood Dining when it receives

The entrustment rule basically allows innocent buyers to obtain legitimate title to goods purchased from merchants even if the merchants do not have good title.

Stubbs buys a Tred-brand bicycle from his brother,Uriah.Uriah agrees to keep the bike at his house until Stubbs picks it up.During a storm,a tree falls from Victor's yard onto Uriah's garage and destroys the bike.The loss of the bike is suffered by