Exam 18: Title and Risk of Loss

If the seller's title is void , the seller has the power to transfer good title to a good faith purchaser.

If a buyer accepts a shipment of goods and later discovers a defect, acceptance can be revoked.

After title passes to a buyer, a seller no longer has an insurable interest in the goods.

Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants, but they have not yet entered into a contract. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in

Quaff Café buys twenty-five crates of apples from Reynaldo Produce, Inc. The parties agree to ship the apples "F.O.B. Quaff" via Swift Trucking Company. The apples rot in transit. The loss is suffered by

Risk of loss refers to which party will suffer a financial loss if the goods in the contract are lost, destroyed, or damaged.

Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad, Inc., for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each acknowledge possession of the goods by a document of title. These parties are

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. with a shipment contract. Absent a contrary agreement between the parties, title will pass to Runners Feet when

A bill of lading is a receipt issued by a carrier that also serves as a contract for transporting the goods .

When a buyer breaches a contract, the risk of loss immediately shifts to the seller.

Pipes & Culverts Company orders six irrigation pumps from Quality Pumps, Inc. The pumps are stored in Re-storage Warehouse. Under the terms of the order, Quality must give Pipes a warehouse receipt for the goods, which Pipes will then pick up. Title to the goods passes to Pipes when

Organicos Café orders five gallons of PureMaid-brand trans-fat-free olive oil from Quico Cooking Supplies, Inc. Quico mistakenly ships soy oil, which Organicos keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by

Risk of loss cannot pass from seller to buyer unless the goods are identified to the contract.

If the seller is not a merchant, and the goods are being held by the seller for the buyer to pick up, the risk of loss passes to a buyer on tender of delivery.

If the seller's title is voidable , a good faith purchaser acquires no title, and the real owner can reclaim the goods.

Liz buys a Miata from Nate's Mazda, paying with a check that is later dishonored. With respect to this offer, Liz's title to the car is

Jill buys a kayak from a LakeCraft store, which agrees to keep it for her until she picks it up. Before Jill gets the kayak, an unforeseen tornado destroys the store and the goods. The loss is suffered by

Under the UCC, the buyer and the seller can determine in the contract when title passes.

Identification is the express designation of the goods provided for in a contract.

Paramount Bookstores buys fifty cases of an assortment of books from Quixote Publishing with the right to return the unsold books in lieu of payment. This is