Exam 15: Title and Risk of Loss

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

In a sale on approval,title and risk of loss pass only when the buyer accepts the goods.

Fungible goods are goods that are alike by physical nature,agreement,or trade usage.

Track & Truck Distribution,Inc. ,signs a receipt for goods that will also serve as a contract for the transportation of the goods.This is

Moto Company sells new and used motorcycles.Some of the motorcycles are held on consignment,including six consigned by Nu Cycles,Inc.While the cycles are in Moto's possession,title to them is held by

Before a seller can have an insurable interest in goods,the goods them?selves must be identified to a contract.

Barb pays $1,000 for a new computer to Computer Products Corporation,which pays Discount Warehouse,Inc. ,$50 to store the computer until Barb retrieves it.Discount Warehouse is

If a contract calls for a lease of specific and ascertained goods that are al?ready in existence,identification takes place at the time payment is made.

A lessor with voidable title can transfer a valid leasehold in?terest to a good faith lessee for value.

Office Applications Company (OAC)orders six laser printers from Printing Products,Inc.(PPI),to be delivered by PPI.Before PPI's truck ar?rives with the goods,OAC tells PPI it will not pay.The printers are lost in transit.The loss is suffered by

Under all circumstances,title passes to the buyer at the time and place at which the seller physically delivers the goods.

When a buyer breaches a contract,the risk of loss immediately shifts to the seller.

Floors & More Store contracts to buy 100 carpets from Ground Cover,Inc.Unless the contract states otherwise,it is assumed that this is

A contract in which a buyer takes goods primarily for resale,with a right to return any goods that fail to sell,is a sale on approval.

Quality Computer Company agrees to sell one hundred hard drives to Retail Electronics,Inc.The hard drives,which Retail Electronics ex?pressly requires to have certain amounts of memory,are to be shipped "F.O.B.Retail Electronics distribution center in Memphis,TN." When the drives arrive,Retail Electronics rejects them and informs Quality Computer that the drives do not conform to Retail Electronics' memory re?quirement.A few hours later,the drives are destroyed in a fire at Retail Electronics' distribution center.Will Quality Computer succeed in a suit against Retail Electronics for the cost of the goods?

Entrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.

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

Perfect Fit Furnishings,Inc. ,agrees to lease a desk to Research Resources,Inc.(RRI),which requests that the desk be left outside Streetside Warehouse for RRI to pick up.Before RRI retrieves the desk,it is stolen.The loss is suf?fered by

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

When goods are in a consignee's possession,the consignee's creditors will prevail over the consignor in an action to repossess the goods.