Exam 21: Title and Risk of Loss

Big Red Drinks,Inc. contracts to buy two tons of cranberries from Super Fruits,Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is

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

A seller has an insurable interest in goods as long as the goods are in existence.

When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties.

Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices,Inc. Consumers Choice later discovers a defect in the tablets,revokes acceptance,and returns the tablets via GoBack,Inc. During the return,the tablets are lost. The loss is suffered by

A seller with voidable title can transfer good title to a good faith purchaser for value.

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce,Inc. The parties agree to ship the oranges "F.O.B. Quaff n' Quench " via Swiftline Trucking Company. The oranges rot in transit. The loss is suf-fered by

Home Appliance Corporation contracts with Instate Trucking Company to take a selection of appliance repair parts to Journey Airlines,Inc.,with Journey to transport the goods to a KeepSafe Company warehouse. Instate Trucking,Journey Airlines,and KeepSafe each acknowl-edge possession of the goods by a document of title. Instate Trucking,Journey Airlines,and KeepSafe are

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing,Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order,Quality must give Pipes & Culverts a warehouse receipt for the goods,which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when

Tenants in common are owners with undivided shares of the whole.

If a buyer accepts a shipment of goods and later discovers a defect,acceptance cannot be revoked.

Brad leaves an iPod at Computer Sales & Repair (CSR)to have the battery replaced. CSR sells the iPod to Doris,who does not know that it belongs to Brad. Brad can recover from

Safety Supply Corporation in New York sells a truckload of protective suits,masks,and other safety gear to Toxic Recovery,Inc.,in Connecticut,"F.O.B. New York." Safety Supply arranges with US Truckline to transport the goods. The cost of the transport will be paid by

Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora Company. Hybrid mistakenly ships a selection of annuals,which Garden & Field re-jects and returns via Intra-state Transport,Inc. During the return,the annuals are lost. The loss is suffered by

NutriRich,Inc.,sells fifty cases of Omega 3 capsules to Good Health stores,but before Good Health takes physical possession,the cases are lost. Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

The risk of loss in a shipment contract passes to the buyer when the goods are delivered to the carrier.

Organicos Café orders five gallons of PureMaid-brand trans fat-free olive oil from Quico Cooking Supplies,Inc. Quico mistakenly ships soy oil,which Organicos keeps,despite the nonconform-ity. The oil is destroyed in a fire. The loss is suffered by

When a buyer breaches a contract,the risk of loss immediately shifts to the buyer.

Ursula buys a Verismooth boat from a Watercraft store,which agrees to keep the boat for Ursula until she picks it up. Before Ursula gets the boat,an unforeseen tornado destroys the store and the boat. The loss of the boat is suffered by

A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.