Exam 24: Title and Risk of Loss

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

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

Once goods in a contract have been identified the buyer holds an insurable interest in them.

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

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

"Without reserve" auctions 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(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.

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

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

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.

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

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

Future goods can be identified before they are manufactured.

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

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

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?

Title passes to the buyer at delivery:

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