Exam 21: Transfer of Title and Risk of Loss

Kevin delivers to Zach nonconforming goods.Zach accepts, but later discovers the defect and rightfully revokes acceptance.If the goods are destroyed through no fault of Kevin or Zach:

A "buyer in the ordinary course of business" is necessarily a "good faith purchaser for value."

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?

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?

Article 6 of the Code does not:

A basic tenet of the law, which is expressly stated in the Code, is that a purchaser of goods obtains such title as his transferor had or had power to transfer.

In a lease, the lessee obtains the right to possess and use the goods for a period of time in return for consideration, but title does not pass.

Which of the following is necessary to be considered a good faith purchaser?

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:

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?

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.

Identification 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.

In __________ the goods are sold and delivered to the buyer with an option to return them to the seller.

Mark, a college student, agreed to sell his horse to Henry for $1,000.The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse.Henry paid Mark the money, patted the horse and said, "I'm glad you're mine, you beauty," and drove off.Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild.Has there been a sale?

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.After the shirts were specially imprinted, but before they were mailed, Amanda called King Manufacturing to disavow the contract.The next day the sweatshirts were stolen.In this case:

Future goods can be the subject of a present sale.

Mary orders a dress for $1,000.The designer sends the wrong size.Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State Engineering.She calls the designer and sends the dress back, but it is lost in the mail.Mary's insurance would cover $400 of the loss.The designer's insurance would cover $900.Who is liable?

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?

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