Exam 17: Title to Goods and Risk of Loss

Nebula Crystals,a firm in New York that manufactures crystal figurines,was contracted by Ruth from Florida to deliver a thousand such crystal figurines.The contract required the firm to deliver and tender the goods alongside the vessel SS Dew Express at the New York harbor.Which of the following shipment term expresses such conditions?

The ________ bears the risk of loss during transportation in a destination contract.

The common law allows the parties to a contract to agree on who will bear the risk of loss if the goods subject to the contract are lost.

Kenneth purchased a car from his local dealership,Quartent Cars.However,since the car was not available in the color that Kenneth favored,the sales contract stipulated that Kenneth could immediately pick up the car from a nearby warehouse it was housed in.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson around a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire in the warehouse.If Mr.Henderson had refused the document of title provided by Kenneth,who would have borne the risk of loss to the car?

In a sale or return contract,a buyer is only allowed to sell the goods within a stated period of time.

Is there a passage of title on the purchase of stolen goods? Explain with an example.

A shipment contract requires the buyer to make all the necessary shipping arrangements.

Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knells' until it is repaired.The watch store repairs the watch,but then sells it to Kevin,who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan,who is unaware of the stolen nature of the watch.According to the entrustment rule,what legal recourse does Steve have to reclaim the watch or collect damages?

A purchaser does not acquire title to the goods purchased from a thief who has stolen them.

A seller or lessor retains the risk of loss of the goods until he or she identifies them to a sales or lease contract.

________ is a shipping term in a contract that requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

Who among the following is a good faith purchaser for value?

In both shipment and destination contracts,the risk of loss is on the seller during transportation.

Fred has 100 tons of stone in a warehouse.Barney agrees to purchase the stone from Fred.The contract states that Barney will pick up the stone directly from the warehouse.Fred delivers a warehouse receipt for the 100 tons of stone to Barney.Before Barney is able to pick up the stone,a tornado sweeps through and destroys the stone.Who has the risk of loss?

Which of the following transactions represents a conditional sale?

If a contract specifies "F.A.S.The Oceanking,New Orleans," the seller bears the risk of loss until it hands over the goods to the carrier.

The term ________ refers to a type of sale in which there is no actual sale unless and until the buyer accepts the goods.

In a sale on approval,the risk of loss and title to the goods pass to the buyer when the ________.

Thomas signed a sales contract with Bricklay's,a firm that supplies bricks for private individuals.The contract specified the type and amount of bricks needed,and that Thomas would pick up the bricks from the Bricklay's warehouse 15 days later.Thomas received a document of title,but failed to pick up the goods on the stipulated date.In this scenario,at what point of time is the title to goods passed over to Thomas?

Which of the following is true for the shipping term "free on board point of shipment"?