Exam 19: Title and Risk of Loss

Good Food Corporation buys from Home Farms,Inc.,a rice crop that Home Farms plans to plant and harvest during the next growing season.Good Food plans to sell the rice to Interstate Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex?ists in

Summit Sales Corporation orders goods from OverStock Company.Summit plans to market the goods to consumers generally.OverStock identifies the goods.Before they are shipped to Summit,an insurable interest in the goods exists in

Identification,risk of loss,and insurable interest are all concepts that are involved in determining the rights and liabilities of parties to a contract.

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is

If a lessor is a merchant,the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Twyla buys an HD TV from Viewpoint Electronics store,which agrees to keep the TV for Twyla until she picks it up.Before she gets the TV,a fire destroys the store and the set.The loss is suffered by

If a seller is not a merchant,and the goods are not to be moved,the risk of loss passes to a buyer on tender of delivery.

Southern Distribution,Inc.,signs a receipt for goods that will also serve as a contract for the goods' transport. This is

Grace purchases three tons of fine merino wool on behalf of Woolen Creations.Woolen Creations wants the wool to remain in the warehouse where it is being stored until it is needed.Grace makes an offer for the wool on Monday.The offer is accepted on Tuesday.The warehouser gives Woolen Creations a warehouse receipt on Wednesday.Woolen Creations picks up the wool from the warehouse three months after the sale.Title for the wool passed to Woolen creations

When a lessee sells leased equipment to a third party,the lessor cannot,under any circumstances,recover the equipment from the buyer.

Fungible goods are goods that are alike naturally or by agreement or trade usage.

A buyer and a seller cannot normally have an insurable interest in iden?tical goods at the same time.

Jason contracts with Golf Carts Unlimited,Inc.to buy five golf carts.The contract lists the five carts as GC001,GC002,GC003,GC004,GC005.Identification

Home Products Store buys furniture from Relax-o Furniture,Inc.The parties agree that the furniture will be shipped "F.O.B.Relax-o's ware?house" to Home Products via Swift Shipping Corporation.The furniture is lost in transit.The loss is suffered by

Regal Recreation Sales,Inc.,allows Sandy to take a Regal boat for a "test run." Sandy tries the boat for a few hours,returns,and buys it.This is

In contracts involving a sale of unborn animals to be born within twelve months,identification takes place when the animals are born.

Kip,a representative for Lite-Weight Shipping Company,delivers a bill of lading to Meg,the owner of Capacity Storage Warehouse.A bill of lading is

Fay pays $800 for a new iPad to Global Goods,Inc.Global holds the iPad until Fay picks it up.Global is

Future goods are goods that are not both existing and identified to the contract.

If a sale of goods is conditional on the buyer's resale of the purchased goods,then the transaction is a sale or return.