Exam 24: Title and Risk of Loss

Goods are called identified goods when they have been selected as the goods called for by a sales contract.

__________ reserve auctions are those in which the goods must be sold regardless of whether the auctioneer is satisfied with the levels of the bids.

If a contract contains a delivery term of FOB place of shipment, the seller's obligation under the contract is to deliver the goods to a carrier for shipment.

__________reserve auctions are those that give the auctioneer the right to withdraw the goods from the sale process if the bids are not high enough.

In a contract for FOB place of shipment, the risk of loss passes to the buyer at the same time as title does: when the goods are delivered to the carrier, that is, at the time and place of shipment.

When goods are sold at an auction in separate lots, the title to each lot passes:

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

Anne Robertson obtained telescopes from the See-Well Optics Company at dealer prices on the pretense of being a dealer in optical equipment. See-Well later determined that Robertson was not, had never been, and did not plan to be a dealer in optics. By the time these facts emerged, Robertson had succeeded in selling the telescopes to several individuals located throughout the country. These buyers had responded to advertisements placed by Robertson, who again had represented herself as a dealer in optical equipment. The buyers had purchased the telescopes in good faith at prices consistent with comparable equipment. See-Well located these buyers and demanded that the telescopes be returned as property obtained through fraud. Do the buyers of these telescopes have to return their purchases?

Future goods are involved when a store is temporarily out of an advertised item but tells you that the item can be ordered from the factory.

Most courts hold that when a customer takes an item from the shelf in a self-service store, there is:

When negotiable documents of title to goods are sold, the risk of loss and the title to the goods pass to the buyer when the documents are delivered to the buyer.

A seller's insurable interest in goods always terminates with the passage of the title to the buyer.

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

Goods that are not yet in existence or are not yet owned by the seller are__________ goods.

If a contract contains a delivery term of __________, the seller's responsibility is to get the goods to the buyer.

Under a CF contract, the seller must get the goods to a carrier and buy an insurance policy in the buyer's name to cover the goods while in transit.

In a sale or return transaction, until the actual return of the goods is made, title and risk of loss remain with the buyer.

"Without reserve" auctions give the auctioneer the right to withdraw the goods from the sale process if the bids are not high enough.

When particular goods have been selected by either the buyer or the seller, or both, as being the goods called for by the sales contract, the goods are said to be

If partial damage or total destruction occurs after the risk of loss has passed to a buyer, it is the buyer's loss.