Question 1

Future goods can be the subject of a present sale.

Accepted Answer

A) True 
 B)False

Question 2

Except in a finance lease, the risk of loss passes to the lessee in a lease of personal property.

Accepted Answer

A) True 
 B)False

Question 3

At common law, the risk of loss or damage to goods identified under a contract of sale falls upon:

Accepted Answer

A)  the buyer. 
B)  the seller. 
C)  the party who had title or ownership of the goods at the time of the loss or damage. 
D)  the designated party as determined by the court. 
A)  the buyer. 
B)  the seller. 
C)  the party who had title or ownership of the goods at the time of the loss or damage. 
D)  the designated party as determined by the court.

Question 4

Community Hospital in Atlanta entered into a contract to buy delicate lab equipment from D & D Company in Denver. The contract states shipping terms as FOB, Denver. While in transit the equipment was damaged beyond repair by the carrier, Fly-by-Nite Air Lines. The carrier is in weak financial condition and refused to pay for the equipment. In this case:

Accepted Answer

A)  D & D Company must replace the equipment at no cost to the hospital. 
B)  Community Hospital has risk of loss. 
C)  D & D Company and Community Hospital will share the loss equally. 
D)  risk of loss will depend on which party chose Fly-by-Nite as the carrier. 
A)  D & D Company must replace the equipment at no cost to the hospital. 
B)  Community Hospital has risk of loss. 
C)  D & D Company and Community Hospital will share the loss equally. 
D)  risk of loss will depend on which party chose Fly-by-Nite as the carrier.

Question 5

Answer the following:
a.  What is an insurable interest? At what point in a sales transaction does the buyer get an insurable interest?
b.  Is the buyer the only one who has an insurable interest in the goods? Is it possible for both the buyer and the seller to simultaneously hold an insurable interest? Explain.
An insurable interest is a property interest that allows a party to purchase

Accepted Answer

a. insurance on the goods. Under the Cod

Exam 23: Transfer of Title and Risk of Loss

Future goods can be the subject of a present sale.

Except in a finance lease, the risk of loss passes to the lessee in a lease of personal property.

At common law, the risk of loss or damage to goods identified under a contract of sale falls upon:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

Filters