Exam 21: Transfer of Title and Risk of Loss

Explore all topics

Wayne sells James a forklift, but retains a security interest in the equipment. Wayne no longer has an insurable interest in the forklift since title has passed to James.

Free

(True/False)

4.9/5

(40)

Question 1

Correct Answer:

Verified

False

a. What is a bulk transfer? b. What is the purpose of bulk sales law? c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

Free

(Essay)

4.8/5

(36)

Question 2

Correct Answer:

Verified

a. A bulk transfer is a merchant's transfer, not in the ordinary course of the transferor's business, of a major part of his materials, supplies, merchandise, or other inventory at once.
b. The central purpose of bulk sales law is to deter two common forms of commercial fraud. One occurs when the merchant, owing debts, sells out his stock in trade to a friend for a low price, pays his creditors less than he owes them, and hopes to come back into business in the future. A second form of commercial fraud is when the merchant, owing debts, sells out his stock in trade to anyone for any price, pockets the proceeds, and disappears without paying his creditors.
c. The effect of a failure to comply with the requirements of Article 6 of the Code is that the goods in the possession of the transferee continue to be subject to the claims of unpaid creditors of the transferor.

The risk of loss for "sale or return" is the same as for a sale "on approval."

Free

(True/False)

4.8/5

(29)

Question 3

Correct Answer:

Verified

False

Which of the following is true regarding identification of the goods under Article 2?

(Multiple Choice)

4.9/5

(36)

Question 4

The bulk sales portion (Article 6) of the Code applies only to transfers in the ordinary course of business.

(True/False)

4.9/5

(32)

Question 5

With regard to Article 6 of the Uniform Commercial Code, which of the following is accurate?

(Multiple Choice)

4.8/5

(28)

Question 6

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods, title passes at the time and place at which the seller completes performance.

(True/False)

4.9/5

(37)

Question 7

Fungible goods are goods for which one unit is the equivalent of any other unit.

(True/False)

4.8/5

(38)

Question 8

A void title may allow good title to pass in special circumstances.

(True/False)

4.7/5

(38)

Question 9

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.

(Essay)

4.9/5

(31)

Question 10

Identification of goods to a contract may be made by either the seller or the buyer.

(True/False)

4.7/5

(34)

Question 11

Title to goods passes according to rules under the Code if the parties have no explicit agreement as to transfer of title.

(True/False)

5.0/5

(36)

Question 12

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

(Multiple Choice)

4.8/5

(40)

Question 13

Jack is a guest at 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?

(Multiple Choice)

4.9/5

(32)

Question 14

A voidable title is no title.

(True/False)

4.8/5

(27)

Question 15

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. This is:

(Multiple Choice)

4.8/5

(43)

Question 16

Everett bought a washer and dryer for $1,200 from Neely Appliances, which was to deliver the set in two days, on its regular delivery date for Everett's area. However, on the night of the sale, Neely's suffered an accidental fire and the washer and dryer were destroyed. Who has the risk of loss? Who would have the risk of loss if Everett had instead bought a used washer and dryer from his neighbor who was having a moving sale, and the washer and dryer were destroyed after Everett had paid for them and after the neighbor made them available to Everett but before he picked them up?

(Essay)

4.8/5

(34)

Question 17

Tom makes pottery in his spare time. Jackie asks if he'd sell her a 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?

(Multiple Choice)

4.8/5

(33)

Question 18

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

(Multiple Choice)

4.9/5

(44)

Question 19

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

(True/False)

4.8/5

(37)

Question 20

Showing 1 - 20 of 70

Exam 21: Transfer of Title and Risk of Loss

Wayne sells James a forklift, but retains a security interest in the equipment. Wayne no longer has an insurable interest in the forklift since title has passed to James.

a. What is a bulk transfer? b. What is the purpose of bulk sales law? c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

The risk of loss for "sale or return" is the same as for a sale "on approval."

Which of the following is true regarding identification of the goods under Article 2?

The bulk sales portion (Article 6) of the Code applies only to transfers in the ordinary course of business.

With regard to Article 6 of the Uniform Commercial Code, which of the following is accurate?

When goods are to be physically moved by a third-party carrier and delivery is made by physically moving the goods, title passes at the time and place at which the seller completes performance.

Fungible goods are goods for which one unit is the equivalent of any other unit.

A void title may allow good title to pass in special circumstances.

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.

Identification of goods to a contract may be made by either the seller or the buyer.

Title to goods passes according to rules under the Code if the parties have no explicit agreement as to transfer of title.

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

A voidable title is no title.

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. This is:

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

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

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

Filters