Exam 23: Transfer of Title and Risk of Loss

Z, a seller in Miami, enters into a contract which states that goods are to be delivered to X, a buyer, in New York. Title is to remain with Z until delivery to X. This is:

Discuss who has the risk of loss in the absence of a breach in a destination contract for the sale of goods. Also discuss the effect of an agreement of the parties.

Brett contracts to purchase a particular automobile from Johnson's car lot. At what point does Brett obtain a special property interest that enables him to insure the car?

A sale exists when the buyer takes:

Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:

Jack is a guest in Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the music box from Robert?

Mario, a minor, sells his bicycle to Jimmy for $150. A week later, Kelly, who does not know Mario, buys the bike from Jimmy for $200. Mario, upon learning about Jimmy's sale of the bike, disaffirms his contract with Jimmy. Kelly does not have valid title and must return the bike to Mario.

Although he knows the ring is really valuable, Alex tells Mona her ring contains artificial gems, but he would be willing to buy it for $50. Mona agrees. Alex quickly takes the ring to Hanna's Antique Jewelry Shop and sells it for $1,000. A month later, Mona sees her ring on sale for $2,000 at the shop. Is Mona entitled to get the ring back?

Under the CISG:

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods.

A good faith purchaser acts honestly, gives value, and takes the goods without notice or knowledge of any defect in the title.

Title to existing, identified goods can pass whenever the parties agree it will pass.

New Horizons delivers 20 dozen blankets to its agent, Marketall, for sale by Marketall. Marketall maintains a place of business where it sells bedding under its own name. A creditor of Marketall may obtain possession of New Horizons' blankets:

If a contract is not clearly a destination or a shipment contract, the law assumes that it is a shipment contract.

If the owner of goods entrusts them to a merchant, the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

Tom makes pottery in his spare time. Jackie asks if he'd sell her a particular covered bowl. Later that day, he telephones her and says she can have it for $50. She agrees, so he tells her he'll wrap it up for her and it will be ready in half an hour. Six days later, Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks the bowl. Who is liable?

The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods.

Security interests in goods are governed by the common law rather than the UCC.

A(n) is a delivery of possession of personal property to an agent for sale by the agent.

Carl ordered 1,000 sq. ft. of green carpet from RS Company. In error, RS Company shipped 1,000 sq. ft. of yellow carpet. In this case, the risk of loss remains with the seller until Carl accepts the yellow carpet or RS Company remedies the defect.