Exam 23: Title and Risk of Loss

When particular goods have been selected by either the buyer or the seller, or both, as being the goods called for by the sales contract, the goods are said to be

In an FOB shipment contract, title to the goods pass to the buyer when goods are delivered to the carrier.

If a contract contains a delivery term of __________, the seller's responsibility is to get the goods to the buyer.

Once goods in a contract have been identified the buyer holds an insurable interest in them.

In a sale or return transaction, until the actual return of the goods is made, title and risk of loss remain with the buyer.

Future goods can always be identified before they are manufactured.

A sale or return is a completed sale with an option for the buyer to return the goods.

A __________ is a completed sale with an option for the buyer to return the goods.

Goods are identified when they have been selected as the goods called for by a sales contract.

A document of title is not sufficient for a creditor to take an interest in goods.

Generally, a bailee can pass good title to a good-faith purchaser even when the sale was not authorized by the owner.

COD is a shipping term that requires the buyer to pay in order to gain physical possession of the goods.

In a self-service store a sale cannot occur until the goods are paid for.

Supply chain management refers to the management issues of risk and title as goods flow through commerce.

In a sale on approval, the buyer's approval must be demonstrated by express words.

In a consignment, the dealer-consignee is often referred to as a(n):

A consignment sale is treated as a sale or return under UCC Article 2.

The expense and the risk of return in a sale or return situation is on the:

In an FOB Place of Destination shipment Title passes to the buyer:

Anne Robertson obtained telescopes from the See-Well Optics Company at dealer prices on the pretense of being a dealer in optical equipment. See-Well later determined that Robertson was not, had never been, and did not plan to be a dealer in optics. By the time these facts emerged, Robertson had succeeded in selling the telescopes to several individuals located throughout the country. These buyers had responded to advertisements placed by Robertson, who again had represented herself as a dealer in optical equipment. The buyers had purchased the telescopes in good faith at prices consistent with comparable equipment. See-Well located these buyers and demanded that the telescopes be returned as property obtained through fraud. Do the buyers of these telescopes have to return their purchases?