Exam 14: Title, Allocation of Risk, and Insurable Interest

Rex Radios sells 400 i-pods to Scott Shops for $4000.00. The contract states that the i-pods are to be delivered to Witt's Warehouse until Scott Shops has room to store the i-pods. Rex delivered the i-pods to Witt's and produced the bill of lading to Scott Shop the next morning. A week later, the warehouse burns down destroying all of the i-pod inventory. According to the UCC, who bears the responsibility of the i-pods?

What is the name of the organization that published abbreviations that are meant to avoid confusion in international business transactions?

Explain when someone has an insurable interest and why a person may want to insure a good in a business transaction.

Lora agrees to make Aubrey a quilt out of all of her past t-shirts for $50.00. Is that a good according to the UCC?

Alex purchases a computer from Dell to be delivered via Fed Ex. Dell delivers the computer to Fed Ex to be shipped to Alex. During the delivery, the Fed Ex driver is having a bad day and just throws the boxes out the window of the delivery truck rather than setting the box by the front door as is standard practice. While throwing the computer it is damaged. Would Dell be responsible for the damage to the computer?

What must be present under the UCC for title to a good to pass to a buyer at the time of contract creation?

The legal term for ownership is

A person who acts honestly and provides reasonable value for good is called a

If a contract does not state when title will pass, the UCC will apply __________ to determine when title passes.

Title confers a claim of ownership of the personal property to the titleholder.

Hamms and Bacon Bookstore sells a book on its shelf to a school. The agreement states, "Hamms and Bacon Bookstore agrees to sell ISBN# 123-3456-7890 for $10.00." The agreement does not specifically mention that it is for the sale of books. Which statement below is correct according to the UCC?

Bosco Bibles sells 500 Bibles to Liberty Christian Academy. Due to the value and importance of the shipment, Bosco Bibles and Liberty Christian Academy want to purchase insurance to cover the Bibles while in transit for delivery and specify it in the contract itself. Which statement below is correct according to the UCC?

A-phone Corporation, a California corporation, enters into an agreement with Matt to sell him a phone. In the contract, Matt specifically states that a representative from A-phone must travel to his home in Uganda and deliver it to Matt in person and title will pass once the phone is safely placed in Matt's hands in Uganda. A-phone drops the phone in the mail as they realize it is too expensive to travel to Uganda to deliver it in person. Which statement below is correct according to the UCC as to when title actually passed?

Explain what is necessary to create a good that can be transferred from buyer to the seller according to the UCC.

Shirley lives next to Reid and has always admired his use of lawn ornaments in his landscaping. She particularly loves Reid's life sized elephant and therefore wants to purchase insurance to protect the lawn ornament from loss or damage during shipping as he sells it to a friend in another state. Will Shirley be able to do that?

The UCC requires that title can only pass by delivery of a written document.

Adelaide's Aprons sells 10 aprons to a store in another state which requires shipment. However, the contract states Adelaide's will ship the goods via Fed Ex but does not state when ownership and responsibility transfers. According to the UCC since the contract is silent on that issue, when will title transfer?

According to the UCC, for the sale of goods that requires shipping, the presumption is that unless stated otherwise, the seller need only deliver the goods to __________ to complete performance.

Alex has title to a car and, according to the UCC, it gives her the power to only sell or gift the car.

Moxie Mangoes enters into a contract with Fresh Time Restaurant for 50 cases of mangoes to be delivered via Fed Ex to the restaurant. Moxie delivers the mangoes to Fed Ex as required. The Fed Ex truck breaks down en route of delivery to the restaurant delaying delivery and causes the mangoes to rot and thus become infested with mango worms. Finally after several days' delay, Fed Ex attempts to deliver the mangoes. When Fresh Time realizes the status of the mangoes, it refuses delivery. What recourse does Fresh Time have?