Exam 24: Title and Risk of Loss

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

__________ goods are goods that, when mixed together, are indistinguishable.

Title to goods can be transferred without the actual delivery of the goods involved.

When goods are existing and identified to the contract and there is no document of title, the title to the goods passes to the buyer at the time of the transaction.

Title and risk of loss always pass to the buyer at the same time.

In a __________, no sale takes place (meaning there is no transfer of title) until the buyer approves, or accepts, the goods.

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

A bailee can pass good title to a good-faith purchaser, even when the sale was not authorized by the owner and the bailee has no title to the goods but is in the business of selling those particular types of goods.

When a person picks out a specific necktie and purchases it, the transaction involves identified goods.

Heterogeneous goods are goods that, when mixed together, are indistinguishable.

In a sale on approval, the risk of loss passes to the buyer when the buyer takes possession of the goods.

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

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

A consignment sale is treated as a sale or return under UCC Article 2, and the dealer-consignee has full authority to sell the goods for the consignor and can pass title to those goods.

In a sale on approval, the buyer's approval may be shown by:

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

If a buyer purchases goods on approval, the buyer's creditors cannot reach such goods until there is an approval.

Bob Corporation entered into a contract to sell parts to Zeck. The contract provided that the goods would be shipped "FOB Bob's warehouse." Bob shipped parts to Zeck that were stolen from the carrier. When Zeck checked the invoice, Zeck discovered that Bob had sent Model #20B instead of Model #20A, which the contract required. Whose loss? Why?

If a seller under a shipment contract sends nonconforming goods, the risk of loss in transit is on the buyer.

The Anderson Balloon Company of Detroit entered into a contract with Johnson's Novelty Shop of Des Moines to sell 1,000 balloons to Johnson's. The contract provided that the balloons were to be manufactured in accordance with Johnson's specifications. The contract further provided that the balloons would be shipped to Johnson's. The balloons were damaged while in transit from Detroit to Des Moines. Johnson's has sued Anderson for damages. Will Johnson's win?