Exam 17: Performance of Sales, Leases and E-Contracts

Molly has purchased widgets from Adrian on several occasions.The widgets are identified by serial numbers.In this particular instance,Molly and Adrian decide to only use electronic communication.On March 1,Molly sends an Adrian an e-mail to purchase 500 widgets.On March 10,Adrian replies to Molly and includes 500 serial numbers of the widgets that will be shipped to Molly.Adrian ships the widgets on March 12 and Molly receives them on March 15.Under the UCC when are the widgets considered identified and why?

Who is protected by the entrustment rule?

Mrs.Smith,a nonmerchant,is moving out to a smaller apartment.Because of this,she wishes to sell her piano.George,who plans to use the piano in his nightclub,inspects Mrs.Smith's piano and decides to buy it.George pays Mrs.Smith and Mrs.Smith tells George he can take the piano at that moment.George says he needs to borrow his friend's truck before he can remove the piano.Mrs.Smith said that this was fine.That night,the piano is destroyed by fire.George sues to recover his money.Who wins?

A title is voidable if the buyer purchased the goods in a fraudulent manner.

In a finance lease,when does the risk of loss pass from the supplier to lessee,if the supplier is a merchant?

When there is not a breach of the sales contract,who bears the risk of loss in noncarrier cases?

Under the UCC,if a person has a voidable title to goods,to whom can they transfer title to?

On September 1,Mike enters into an agreement with Kelly to purchase 100 sets of headphones.The contract entered into between Mike and Kelly is a shipment contract.On September 10,Kelly identifies the 100 sets of headphones that will be sent to Mike.On September 15,Kelly ships the headphones.Mike receives the headphones on September 20.When does Kelly's insurable interest terminate?

When does the passage of title occur under Article 2 of the UCC?

Which of the following requires the seller to arrange to ship the goods and put the goods in the carrier's possession and the seller bearing the expense and risk of loss until the goods are placed in the carrier's possession?

Already existing goods are identified when the contract is made and names the specific goods sold or leased.

In a sale or return contract,the title remains with the seller until the buyer expressly accepts the goods.

A bailee is a seller who has passed the risk of loss to the buyer,but has not transferred the title.

In a sale on approval,the risk of loss passes to the buyer when the goods are delivered.

Billy enters into a contract with Computer,Inc.Computer,Inc.will send Billy 50 touch-screen computers.Computer,Inc.will allow Billy to sell the computers and to return whatever remains unsold within 30 days.Billy keeps the entire amount that he sells the computers for.What type of conditional sale is this?

Under the UCC,parties to a contract can decide who will bear the risk of loss.

Why would a buyer ever enter into an arrangement where the buyer assumes the risk of loss during transport? Is it fair that common carrier's don't take any responsibility under the UCC?

Under the UCC,who holds the risk of loss in a finance lease during transit?

When is the earliest a buyer can claim an insurable interest in goods?

When do parties have an insurable interest in goods? Can a buyer and seller have an insurable interest at the same time? What considerations should be made regarding insurable interest in making contracts?