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

Gabrielle purchase a coffee press from Coffees R Us! to be delivered. When packing the product at Coffees R Us! the employee accidentally breaks it, but ships it anyway. When the box is delivered to Gabrielle's house she accepts the sealed box and immediately runs into the house to open the box. She immediately notices that the coffee press is broken and calls Coffees R Us! to request her money back. What will most likely be the outcome of this situation under the UCC?

In order to have an insurable interest, a person must have title and possession of the good.

Liz purchases a bed from Bisani Bedding to be shipped via Fed Ex. What type of contract is this?

Abdullah purchases a couch from Murphy Interiors for $500.00 which includes delivery to his house the next day. During transit, the delivery truck gets into an accident and the fabric on the couch is damaged. Who bears the risk of loss in this situation?

Nancy's Purses sells Janet a new purse for $100. Unknown to Janet, Nancy actually stole the purse from another retailor. Will Janet be able to keep the purse?

Ron's GPS, Inc. orders 500 Class A cubical satellites to be installed on the GPS units it is manufacturing. When delivery is made on Monday night, the cubical satellites are actually Class B , rather than Class A. The box of satellites is dropped off at Ron's GPS. That night Ron's GPS burns down, destroying all of the Class B cubical satellites. What if any options does Ron have?

Any person who is willing to pay the insurance premium on a good has an insurable interest.

According to the International Chamber of Commerce abbreviations, CF requires

A document that shows a delivery of title is

According to the UCC, which statement below is correct, if a contract is silent as to when title passes and a good must be shipped?

In order to have an insurable interest when a loss or damage of a good occurs

Which of the following is an example of when a person acquires an insurable interest?

When Brett sold Luke a basketball and Luke asked that he ship the basketball, title passed once Brett delivered it to the U.S. Postal Service for shipment..

Anthony buys a couch from Basaba Interiors and arranges to pick it up from the store once he borrows a truck from a friend. Anthony pays for the couch and leaves the store. That night, the store burns down. According to the UCC, who is responsible for the cost of the couch?

Shylo Art Gallery wrongfully convinces Sally that her painting is a fake painting and offers to pay her $100 which is far under that actual value of the painting. Shortly thereafter, the painting is sold to Hannah in Shylo Art Gallery for $5000, the true value of the painting. Will Hannah be able to keep the painting?

The International Chamber of Commerce abbreviation indicating that goods are to be delivered by the seller to the carrier for shipment is

The UCC requires that before title can pass from the seller to the buyer the product must exist and the good must be identified to the contract.