Exam 18: Title and Risk of Loss

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by

Identification is not significant for the buyer or lessee because it does not impact their ability to insure the goods.

If the contract calls for the sale or lease of specific goods that are already in existence, identification takes place when the goods are shipped.

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

In a destination contract, risk of loss passes to the buyer or lessee when the goods are delivered to the carrier.

The parties can agree in their contract when identification will take place.

When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer until the buyer takes actual possession of the goods.

EZ Workouts, Inc., offers to sell a treadmill to Fred and sends it to him on a trial basis. This is

Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is

In a sale on approval, a buyer takes goods primarily for resale, with a right to return any goods that fail to sell.

Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when

Beef, Inc. raises calves to sell. Beef breeds its cows in April, and the cows calve in February of the following year. In January, Cold Cuts Inc. contracts with Beef to buy fifty calves. Identification takes place in