Exam 23: Title and Risk of Loss

__________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.

A consignment sale is treated as a sale or return under UCC Article 2.

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

In an FOB place of shipment contract, the seller's obligation ends when he delivers the goods to a carrier for shipment.

In a self-service store a sale cannot occur until the goods are paid for.

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

Under a CF contract, the cost of shipment is included in the contract price.

A buyer with a voidable title cannot pass on valid title to a subsequent good faith purchaser.

Someone who finds and resells stolen property passes on a good title to a good faith purchaser.

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

Generally, a bailee can pass good title to a good-faith purchaser even when the sale was not authorized by the owner.

In an FOB place of shipment contract the seller's risk of loss for goods under an that are damaged in transit, ends when they are

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.

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

Supply chain management refers to the management issues of risk and title as goods flow through commerce.

If shipped goods are damaged or destroyed after risk of loss passes:

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?

In an FOB shipment contract, title to the goods pass to the buyer when goods are delivered to the carrier.

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

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