Exam 19: Title to Goods and Risk of Loss

A provision under the UCC that affects merchants differently from nonmerchants is:

Under the UCC,for risk of loss purposes,the "sale on consignment" is treated like a "sale on approval."

When a buyer breaches a contract by refusing to take delivery of conforming goods,the buyer:

If a good faith purchaser for value acquires goods from another good faith purchaser,but the goods were stolen at some point in the past,the last good faith purchaser does not obtain good title.

The entrustment rule can have harsh results.Why should the owner not be able to get back the property when it was sold by the merchant with no authorization of the owner? Should the rule be changed? What steps can an entrustor take to minimize the risk of losing the property?

In a consignment,the seller is also known as the consignor.

In which of the following is the usual reason for the return of the goods that they were not able to be resold?

Margie runs an eclectic furniture gallery in an upscale area in a college town.Margie purchases her inventory from numerous sources.Margie has been having financial difficulties of late,and is not able to pay for her two most recent purchases.On May 5 she decides that she will not pay for these.The first shipment of a few tables has already been delivered.These were tables out of the seller's ordinary stock.Margie will have to ship them back.They were received on April 15 and payment is due on May 15.Margie sends an e-mail to the supplier saying that she will not be keeping the tables and will send them back soon.The second purchase has not yet been shipped.These chairs were custom designed by Margie and a friend and then built-to-order by a furniture maker.They are in the warehouse awaiting shipment.Margie sends the sales rep at the furniture maker an e-mail on May 5 saying that she cannot accept shipment because she cannot pay.Discuss the risk of loss status for both groups of items.

If a contract for the sale of goods is F.O.B.Minneapolis and the seller is in Minneapolis and the buyer is in Chicago,the contract is a shipment contract.

Under common law,the risk of loss was based on who had title to the goods.

A breach by the buyer will shift the risk of loss to the buyer as soon as the breach occurs if the risk has not already shifted.

A thief can transfer good title to stolen goods,as long as the other person purchased them in good faith.

In a contract for the sale of unborn cattle or livestock,at what point are the goods identified?

When a buyer of goods has obtained the goods properly from the seller,but later fails to pay for them,what kind of title does the buyer have?

At common law,the risk of loss to goods is placed on the party that has the insurable interest.

Chairs in a warehouse are identified to a sale contract when the seller explicitly selects and separates the chairs for shipment to the buyer.

Sean Sanders brings his ceramic clock to Bill's Clock Repair to be repaired.Sean leaves his clock at the clock repair store until it is repaired.Bill's Clock Repair sells Sean's clock to Ralph Rosco,a buyer in the ordinary course of business.Who can Sean seek recourse against?

Both the buyer and seller of goods can have an insurable interest in the same goods at the same time.

Mrs.Smith is moving out of her personal residence to a smaller apartment.Because of this,she wishes to sell her piano.George inspects her piano and decides to buy it.Mrs.Smith receives her money and tells George he can take the piano right now.George says he needs to borrow his friend's truck before he can remove the piano.That night,the piano is destroyed by fire.George sues to recover his money.Which best describes this situation?

Acceptance of a sale on approval can occur if the buyer uses the goods inconsistently with the purpose of the trial.