Exam 21: Title, Risk, and Insurable Interest

Johan steals Krispin's car and sells it to Lemar. Krispin can recover the car from Lemar

The contract term "delivery ex-ship" means that the risk of loss does not pass to the buyer until the goods are properly unloaded from the ship or other carrier.

When a buyer breaches a contract, the risk of loss remains with the seller.

A bill of lading is a receipt signed by a warehouse for goods stored in a warehouse.

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. The parties agree to ship the oranges "F.O.B. Quaff n' Quench " via Swiftline Trucking Company. The oranges rot in transit. The loss is suf?fered by

Fungible goods are goods that are different naturally, by agreement, or by trade usage.

Stubbs buys a Tred-brand bicycle from his brother, Uriah. Uriah agrees to keep the bike at his house until Stubbs picks it up. During a storm, a tree falls from Victor's yard onto Uriah's garage and destroys the bike. The loss of the bike is suffered by

A seller has an insurable interest in goods as long as he or she retains title to the goods.

Roadtrip County Fairs Corporation orders from Stuffed Animal Sales, Inc., goods that are stored in a Toy Box Maxi-Storage warehouse. Roadtrip pays for the goods, delivery is via the transfer of a negotiable warehouse receipt, and Roadtrip moves the goods out of the warehouse. The risk of loss passes to the buyer when it

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when

Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.

QuickFreeze Storage, a bailee, holds goods for Restaurant Purveyor, Inc., which has contracted to sell the goods to Seafood Dining Company. The goods are to be delivered without being moved. The risk of loss will pass to Seafood Dining when it receives

The contract term "free on board" indicates that the selling price of goods includes transportation costs to the specific F.O.B. place named in the contract.

In a sale or return, a buyer has an option to return the goods and undo the sale.

When a bailee is holding goods that are to be delivered under a contract without being moved, the risk of loss cannot pass to a buyer.

When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties.

Business Banners, Inc., and Cam's Auto & Truck Sales Dealership enter into a contract for a sale of thirty advertising banners emblazoned with Cam's logo. The terms do not explicitly or clearly indicate whether it is a destination or shipment contract. A court would normally presume that it is

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable in?ter?est in the players as long as

The right to cure is the right of a party who tenders nonconforming performance to correct his or her performance within the contract period.

With a bill of lading, Interstate Transport Company acknowledges possession of certain goods and contracts to deliver them. Interstate Transport is