Exam 15: Title and Risk of Loss

Diamond Camera Shop receives lenses from Eye Optical,Inc. ,under a sale or return agreement.While the lenses are in Diamond's possession,ti?tle is held by

Pearl buys from Qual-Tee Motors a used sport utility vehicle (SUV).The SUV was manufactured by Road Rager,Inc. ,and previously owned by Simon.After the sale,Pearl has the title of

A buyer from a thief does not acquire title to the goods even if the buyer acts in good faith.

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

Blend Juice Company contracts to buy a fruit crop from Citrus Farms.Before an inter?est in the fruit can pass from Citrus to Blend,Citrus must

Home Products Store buys furniture from Imperial Furniture,Inc.The par?ties agree that the furniture will be shipped "F.O.B.Imperial's warehouse" via Jiffy Shipping Corporation.The furniture is lost in transit.The loss is suffered by

Quality Farm Supply,Inc. ,sells farm machinery to Rip and other grain farmers.Of these products,fungible goods include

Li'l Jewelry Store orders display racks from Mark-Up Supplies,Inc.(MSI).MSI mistakenly ships racks of the wrong size and color,which Li'l rejects and returns via Nevermind Shipping Company.During the return,the racks are lost.The loss is suffered by

Royal Cafe buys 100 bags of oranges from Sweet Citrus Company.The par?ties agree to ship the oranges "F.O.B.Royal" via Terrific Trucking Company.The oranges rot in transit.The loss is suf?fered by

A bill of lading is a receipt that a carrier signs and that serves as a contract for the transportation of goods.

Sugary Treats Store buys chocolate from Tasty Candies,Inc.The parties agree that the chocolate will be shipped "F.O.B.Sugary Treats" via United Railroad Corporation.The chocolate is lost in transit.The loss is suffered by

Marvel Electronix orders thirty hard drives from Nano Computers,Inc.The hard drives are stored in Onyx Warehouse.Under the terms of the order,Nano must give Marvel a warehouse receipt for the goods,which Marvel will then pick up.Title to the goods passes to Marvel when

The UCC treats a consignment as a sale on approval.

Unless a contract provides otherwise,it is assumed to be a shipment contract.

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

Diners Cafe orders five gallons of corn oil from EZ Distributors,Inc.EZ mistakenly ships olive oil,which Diners keeps,despite the nonconformity.The oil is destroyed in a fire.The loss is suffered by

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

Orange Music,Inc. ,sells Pad-brand MP3 players to Quik Pik Stores and other retailers.Orange has an insurable in?ter?est in the players as long as

A contract in which a buyer is allowed to take goods on a trial basis is a sale or return.

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