Exam 13: Sales Contracts: Formation, Title, and Risk of Loss

Roberta receives a document of title for lumber she purchased. Even though she does not yet possess the lumber, the document transfers to her both title to the lumber and risk of loss for it.

Samantha was looking for a certain shade of thread to complete her needlework on a tablecloth. At a local shop, however, she was unable to decide which of the five selected shades would be the closest match to the cloth. The shop owner allows Samantha to take the selected shades home and decide which one she would want to have. This is an example of which of the following?

An oral contract for the sale of specially manufactured goods involving a price of $500 or more is not enforceable unless it is in writing.

Buyers obtain an insurable interest even though they might later reject or return the goods to the seller.

Under the UCC, a signature includes any symbol made with the intent to authenticate a writing.

An automobile title certificate under the UCC has the legal status of a document of title.

Which of the following is true of destination contracts?

Lucky Used Cars, using their contracts form, agree to sell Alvin a truck for $5,000. The contract provides that it may not be modified-except by a signed writing. After entering into the contract, Lucky and Alvin orally agree that Lucky will include new floor mats and a bed liner for an extra $100. At the time of delivery, Lucky refuses to provide the new floor mats and bed liner unless Alvin pays an extra $250. Discuss the enforceability of the oral agreement Lucky and Alvin had.

Under the ____________, an electronic signature is defined as "an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record."

Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

When goods are sent f.o.b. shipment, the title and risk of loss pass to the:

Sun Supply Co. offered to sell Apartment Management Inc. air conditioner filters at $15 per case in a signed writing that stated the price was good for sixty days. Apartment Management discovered that other sellers charge $20 per case for identical air conditioner filters, but before it can accept Sun Supply's offer, Sun Supply withdrew the offer after only 30 days, stating that changed market conditions had forced it to charge more. Discuss the case.

In a contract with a merchant for which no delivery is required, risk of loss passes to the buyer when the buyer picks up the goods.

The Emmett School (ESD) district contracts with the GoldenFarms Dairy for "all of the milk" GoldenFarms can produce during ESD's current school year. The contract specifies a price, but no exact quantity of milk to be purchased is set in the contract. This contract is a(n):

Ralph, of Miami, Florida, ordered "100 red widgets" from Maria's business located in Seattle, Washington. Shipment was f.o.b. Seattle via Red Freight Co. By mistake Maria sent "100 green doodads" to Ralph. The shipment was destroyed when the Red Freight truck was involved in a traffic accident in Oklahoma City. Ralph had insurance coverage that includes "items purchased that are in transit." Explain whether Ralph or Maria has the risk of loss.

If a person obtains property as a result of another's fraud, misrepresentation, mutual mistake, undue influence, or duress, the person is said to hold only:

In a shipment contract, risk of loss does not pass from the seller to the buyer until the buyer receives the goods.

Downtown Construction Co. obtained possession on April 1 of a bulldozer from Bulldozer Sales Co. to use in Downtown's business with a right to return the bulldozer no later than June 1 with no obligation other than to pay for the fuel the bulldozer used. Downtown is owned by Alice who allows her fifteen-year-old son, Bob, to operate the bulldozer on May 1 on a Downtown job. Bob is inexperienced and wrecks the bulldozer. Explain who has the risk of loss.

In what respect is a bailment legally different from a sale?

In an ____________, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless no bid is made within a reasonable time.