Exam 15: Title and Risk of Loss

Under the UCC,title determines all of the rights and remedies of the par?ties to a sales contract.

Before any interest in specific goods can pass from the seller to the buyer,the goods must exist and be identified to the contract.

Gins pays $2,000 for a new HDTV to Imagine Corporation.Imagine holds the set until Gina picks it up.Imagine is

In a sale or return,the seller delivers the goods to the buyer with the un?derstanding that the buyer can set aside the deal by returning the goods.

Bree leaves a pair of new shoes at Chalky's Shoe Store to be dyed.Chalky's sells the shoes to Dian,who does not know that the shoes belong to Bree.Bree can recover from

Leo buys a boat from his neighbor Moe,who is a fishing guide.Moe agrees to keep the boat in his storage shed until Leo picks it up.A tree falls on Moe's shed and destroys the boat.The loss is suffered by

NuStores accepts a shipment of DVD players from Open-Ur-Eyes Video,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

In the following situations,two parties claim the same goods.Who is most likely to prevail in each circumstance? Explain. (a)Olan steals Phil's television set and sells it to Quincy,an innocent purchaser,for value.Phil learns Quincy has the set and demands its return. (b)Riley takes his television set for repair to Silky,a merchant who sells new and used television sets.By accident,one of Silky's employees sells the set to Tuna,an innocent purchaser-customer,who takes possession.Riley wants his set back from Tuna.

When a buyer agrees to buy goods held by a bailee,unless otherwise ex?plicitly agreed,the risk of loss passes to the buyer when the price is paid.

Real Foods Corporation orders from Savory Company goods that are stored in an Uptown,Inc. ,warehouse.Real Foods pays for the goods,delivery is via the transfer of a negotiable warehouse receipt,and Real Foods moves the goods out of the warehouse.The risk of loss passes to Real Foods when it

C.I.F.stands for "cost,insurance,freight."

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