Exam 20: B: Title,risk,and Insurable Interest

If a sale involves crops that are to be harvested within twelve months,iden?tification takes place when the crops are planted.

Delicioso Tea Company and Savory Stores,Inc. ,enter into a contract for a sale of organic tea.The contract includes the term "F.O.B.River City," which is Savory's location.This means that the contract is

Under a shipment contract,the risk of loss passes to the buyer when the goods are delivered to the carrier.

The UCC has replaced the common law concept of title in part with the concept of risk of loss.

Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC).CCC mistakenly ships denim jackets,which Town re?jects and returns via Valu Transport,Inc.During the return,the jack?ets are lost.The loss is suffered by

Finished Furnishings,Inc. ,agrees to lease an Oak Top-brand desk to Research Resources,Inc.(RRI),which agrees to pick it up at Streetside Warehouse.Before RRI retrieves the desk,it is stolen.The loss is suf?fered by

A consignment is treated as a sale or return and governed by Article 2.

Both the buyer and the seller can have an insurable interest in iden?tical goods at the same time.

Catchy Gadgets Corporation and Discount Outlets,Inc. ,enter into a contract for a sale of kitchenware.The contract requires Catchy to deliver the goods to Rapido Carrier Company for transport to Discount's warehouse.Risk of loss passes to Discount when

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

Fungible goods are goods that can be delivered only by transport.

If an owner holds fungible goods as a tenant in common,he or she cannot pass title to the goods without the other owners' acquiescence.

In a sale or return,title and risk of loss remain with the seller until the buyer ac?cepts the goods.

Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company.Savory identifies the goods.Before they are shipped to Pie Sales,an insurable interest in the goods exists in

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

Leasing Equipment Corporation (LEC)agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be

A seller has an insurable interest in goods as long as the goods are in existence.

NuStores accepts a shipment of QuikView-brand 3D HD DVD players from Open-Ur-Eyes,Inc.NuStores later discovers a defect in the players,revokes acceptance,and returns the players via Playback,Inc.During the return,the play?ers are lost.The loss is suffered by

When a seller keeps the goods for pickup,if the seller is a merchant,the risk of loss passes to a buyer on tender of delivery.

Wild Alaskan sockeye salmon that fill the hold of Dexter's fishing boat are fungible if the fish are