Exam 21: Transfer of Title and Risk of Loss

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?

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?

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

The UCC "risk of loss" rules assign the loss according to who has ownership of the goods.

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

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

a. Arthur brings his new computer to the Quick Fix Repair Shop to be fixed. Two days later, a buyer comes into the shop, and Quick Fix inadvertently sells Arthur's computer. Arthur now wants his computer back. Can Arthur get his computer back? Explain. b. Why do you think the Code follows this rule in situations such as the one above? Explain.

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

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.

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

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer?

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

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?

Article 6 of the Code does not:

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

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

Under a shipment contract, title passes to the buyer at a time and place the seller contracts with the carrier to ship the goods.

Under the CISG:

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