Exam 20: B: Title,risk,and Insurable Interest

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

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

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.

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

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

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

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

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?

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

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

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

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

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

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

A lessee acquires whatever title the lessor has to the goods.

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

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

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

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

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.