Exam 21: Transfer of Title and Risk of Loss

How has the Code affected the rights of good faith purchasers with respect to minors?

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

The parties, by agreement, may divide the risk and shift the allocation of risk.

Conrad bought a satellite radio from SX Company "on approval." The risk of loss passed to Conrad when he took possession of the radio .

Growingreen, a gourmet fresh food store that sells only the highest quality fruits, orders 100 lbs.of peaches from Western Fruits "on approval." Growingreen has never dealt with Western before this transaction.The peaches arrived on Saturday, but the owners of Growingreen were too busy to open the crates.Sunday they are closed.Monday at 4 p.m., they opened the boxes and inspected the peaches.They did not meet the high standards of Growingreen, so they nailed the crates shut and ordered a truck to return them the next day.They arrived at Western on Thursday, totally spoiled, a week after they were sent.This is the first time Western knew they were not being accepted.Who is responsible for the damages to the peaches?

Brett contracts to purchase a particular Chevrolet from Johnson's car lot.Brett obtains a "special property interest" in the car when:

Goods must be both existing and identified to the contract before any interest in them can pass.

The Code has expanded the rights of good faith purchasers with respect to sales by minors.

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

The buyer and seller of goods may not simultaneously hold insurable interests in the goods.

In a contract where the buyer is to pick up the goods at the seller's place of business and the seller is a merchant, the risk of loss passes to the buyer when the goods are tendered to the buyer.

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.

Duncan Supply has consigned goods to Huffman Hardware.Huffman's creditors may take possession of the consigned goods to satisfy their claims against Huffman.

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

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

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

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?

Tender requires that the seller, at a reasonable time:

Inga runs a Swedish health spa in Connecticut.She orders 100 loofah sponges from a company in California.They are sent "F.O.B.Hartford, Connecticut," but they never arrive.What consequence?

The 2001 Revised UCC Article 1 defines good faith as honesty in fact and the observance of reasonable commercial standards of fair dealing.