Exam 21: Transfer of Title and Risk of Loss

Security interests, defined by the Code as interests in personal property or fixtures that ensure payment or performance of obligations, are governed by Article 6 of the UCC.

At common law, the risk of loss or damage to goods identified under a contract of sale falls upon:

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

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

The Code provides that goods must be both existing and identified to the contract before any interest in them can pass.

The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods.

A sale exists after the buyer takes:

Fungible goods are goods for which one unit is the equivalent of any other unit.

The buyer and seller of goods cannot simultaneously hold insurable interests in the goods.

A basic tenet of the law, which is expressly stated in the Code, is that a purchaser of goods obtains such title as his transferor had or had power to transfer.

Which of the following is true regarding identification of the goods under Article 2?

In Robinson v.Durham, the court found:

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

A __________ is a delivery of possession of personal property to an agent for sale by the agent.

The parties, by agreement, may divide the risk and shift the allocation of risk.

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

Jerry bought a sound system from SX Company "on approval." The risk of loss passed to Jerry when he took possession of the sound system.

Jack is a guest at Harry's home.While there, he goes into the library and picks up a music box that is part of Harry's collection.Jack overwinds the stem and it breaks.Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones.The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert.Jack is frantic.Can Harry get the music box from Robert?

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company.After the shirts were specially imprinted, but before they were mailed, Amanda called King Manufacturing to disavow the contract.The next day the sweatshirts were stolen.In this case:

The bulk sales portion (Article 6) of the Code applies only to transfers in the ordinary course of business.