Deck 22: Title,risk of Loss,and Insurable Interest

Question 1

The text discusses the case of Landshire Food Service,Inc. ,v.Coghill,where the defendant,Coghill,sold his Rolls Royce to Bellman who paid with a forged cashier's check.Meanwhile,Hyken,an innocent purchaser for value,purchased the car from Bellman before the fraud was discovered.What was the result of this case?

A)The car was ordered sold with Coghill and Hyken to split the proceeds.
B)Hyken was entitled to the vehicle because although a person who procures title through fraud receives a void title,the person guilty of fraud may transfer good title to a bona fide purchaser.
C)Hyken was entitled to the vehicle because a person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.
D)Coghill was entitled to return of the vehicle because the contract with Bellman was voidable by Coghill.
E)Coghill was entitled to return of the vehicle because the contract with Bellman was void.

Answer 1

C
Explanation: A)According to the court,"The person who procures title through fraud receives
voidable title and is able to transfer good title to a bona fide purchaser.Although the result may seem harsh,the purpose of this rule is to promote the free transferability of property in commerce."
B)According to the court,"The person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.Although the result may seem harsh,the purpose of this rule is to promote the free transferability of property in commerce."
C)According to the court,"The person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.Although the result may seem harsh,the purpose of this rule is to promote the free transferability of property in commerce."
D)According to the court,"The person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.Although the result may seem harsh,the purpose of this rule is to promote the free transferability of property in commerce."
E)According to the court,"The person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.Although the result may seem harsh,the purpose of this rule is to promote the free transferability of property in commerce."

Question 2

If the seller does not provide the goods described in the contract,one option the seller has is to accept the nonconforming goods as is.

Answer 2

True

Question 3

If a buyer and seller execute a contract and the seller subsequently places the goods with a common carrier for delivery to the buyer,the parties have executed a common-carrier delivery contract.

Answer 3

True

Question 4

The terms FOB and FAS mean the same thing.

Question 5

Parties to a contract cannot change the UCC's rules regarding when title passes and when risk of loss passes.

Question 6

In cases where a shipment contract is vague or ambiguous on the issue,an origin contract will be presumed.

Question 7

A title acquired from someone who already owns the goods free and clear is known as a ________.

A)Good title
B)True title
C)Substantiated title
D)Examined title
E)Voidable title

Question 8

Identification of when the risk of loss attaches is important in regards to the right of indemnification.

Question 9

Most buyer breaches occur when a buyer changes his or her mind about the price of the goods.

Question 10

When deciding whether someone with a void title can pass a good title,good faith is a generally relevant consideration.

Question 11

The right to insure the goods against any risk exposure such as damage or destruction is known as an insurable interest.

Question 12

The term tender of delivery refers to the moment goods are picked up by the buyer.

Question 13

Which of the following is the correct outcome of the case discussed in the Case Opener,about whether title had passed to the entity that received shipment,although shipment was made to the wrong party,thereby preventing a lawsuit by the assignee of the original owner against the shipping company?

A)That because the shipper breached its contract by improperly delivering goods,the lawsuit by the assignee was not barred.
B)That while the original seller may have had rights to sue,the lawsuit by the assignee was barred under the Contracts for the International Sale of Goods.
C)That the lawsuit by the assignee was barred because a destination title was involved,and risk of loss had passed to the buyer by the time of delivery,leaving the seller with no rights.
D)That because title and risk of loss had not passed from the seller,who had contracted with the shipper,to the buyer at the time of transfer,the lawsuit by the assignee was not barred.
E)That the lawsuit by the assignee was barred because an origin title was involved,and risk of loss had passed to the buyer by the time of delivery,leaving the seller with no rights.

Question 14

The UCC defines a[n] ________ as the passing of title from the seller to the buyer for a price.

A)Lease
B)Ownership
C)Sale
D)Consignment
E)Title swap

Question 15

Title is the legal ownership of a good,but it does not require possession.

Question 16

A contract is a sale-or-return contract if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Question 17

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant has no authority to transfer any rights in the goods to a buyer in the ordinary course of business.

Question 18

Which of the following is held when someone unknowingly purchases stolen goods?

A)Substantiated title
B)Voidable title
C)Void title
D)Examined title
E)Good title

Question 19

Delivering a car to a merchant for repair cannot qualify as an entrustment.

Question 20

The rule originates in common law that when a seller transfers goods to a buyer,the buyer gets only voidable title if the buyer is a minor.

Question 21

Which of the following was the result in the text's case involving Tempur-Pedic,a mattress manufacturer,which sought to stop the sale of mattresses it donated to a charity for Hurricane Katrina victims and to recover mattresses sold by the charity involved?

A)That the charity had void title under the UCC and could not transfer good title,and that Tempur-Pedic could recover all the mattresses both from the charity and from third-party purchasers.
B)That under the UCC,Tempur-Pedic was entitled to a temporary restraining order because of the likelihood that it could show at trial that its donated mattresses were not sold to a good-faith purchaser.
C)That the UCC did not apply because a charity was involved and that Tempur-Pedic was entitled to a temporary restraining order pending trial because of the likelihood that it would prevail based on fraudulent transactions.
D)That under the UCC,Tempur-Pedic would lose because the mattresses were sold to a good-faith purchaser for value.
E)That the UCC did not apply because a charity was involved and that Tempur-Pedic would lose because movable goods were involved.

Question 22

In a destination contract who bears the risk of loss while the goods are in transit?

A)The loss is proportioned 50% to the buyer and 50% to the seller
B)The loss is proportioned 75% to the buyer and 25% to the seller
C)The buyer
D)The seller
E)The loss is proportioned 25% to the buyer and 75% to the seller

Question 23

When goods are delivered to a buyer via a common carrier,such as a trucking line,it is known as ________.

A)A delivery-carrier contract
B)A goods-in-bailment contract
C)A simple delivery contract
D)A common-carrier delivery contract
E)An average delivery contract

Question 24

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

A)Loss is proportioned 25% to the buyer and 75% to the seller
B)Loss is proportioned 75% to the buyer and 25% to the seller
C)Loss is proportioned 50% to the buyer and 50% to the seller
D)The seller
E)The buyer

Question 25

Which type of contract requires that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier,but not guarantee the safety of goods to their destination?

A)Risk contracts
B)Common-carrier contracts
C)Origin contracts
D)Transfer contracts
E)Destination contracts

Question 26

When a seller transfers a void title to a good-faith buyer,the title is considered ________.

A)Voidable
B)Good
C)Substantiated
D)Excised
E)Void

Question 27

When a sale itself is contingent on approval,which of the following occurs?

A)A transferable contract
B)A conditional sales contract
C)An unapproved contract
D)An average delivery contract
E)A goods-in-transfer contract

Question 28

When purchased goods are transferred to the buyer from the seller,at either the time of the sale or some time later by the seller's delivery,and the seller has an agent deliver the goods to the buyer,which of the following occurs?

A)An acknowledged sale
B)A simple delivery contract
C)A complex delivery contract
D)An average delivery contract
E)A voidable delivery contract

Question 29

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

A)The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
B)The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.
C)The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
D)The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
E)The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.

Question 30

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is not a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

A)Loss is proportioned 25% to the buyer and 75% to the seller
B)Loss is proportioned 50% to the buyer and 50% to the seller
C)Loss is proportioned 75% to the buyer and 25% to the seller
D)The buyer
E)The seller

Question 31

With a simple delivery contract,when does title transfer to the buyer?

A)When the buyer takes possession
B)One day after goods are identified to the contract
C)When money is transferred
D)When the items are delivered
E)When goods are identified to the contract

Question 32

When does risk of loss transfer to the buyer in a simple delivery contract?

A)When goods are identified to the contract
B)When the buyer takes possession
C)When the items are tendered
D)When money is transferred
E)One day after goods are identified to the contract

Question 33

Which of the following is true regarding types of common-carrier delivery contracts?

A)Common-carrier delivery contracts include transfer contracts but not origin,shipment,or destination contracts.
B)Common-carrier delivery contracts include destination contracts,but not origin,transfer,or shipment contracts.
C)Common-carrier delivery contracts include origin and shipment contracts,but not destination or transfer contracts.
D)Common-carrier delivery contracts include origin and transfer contracts,but not destination contracts.
E)Common-carrier delivery contracts include origin and destination contracts,but not transfer contracts.

Question 34

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

A)The purchaser gets good title.
B)The purchaser gets good-faith title.
C)The purchaser gets voidable title.
D)The purchaser gets void title.
E)The purchaser gets reclaimable title.

Question 35

Which of the following is the right to insure goods against any risk exposure such as damage or destruction?

A)A paid interest
B)A collateral interest
C)A valid interest
D)A compensable interest
E)An insurable interest

Question 36

Which of the following is true regarding the status of a common carrier in relation to the seller?

A)The common carrier is an employee of the seller.
B)The common carrier is an agent of the seller.
C)The common carrier is a true carrier of the seller.
D)The common carrier is an independent contractor.
E)The common carrier is both an employee and an agent of the seller.

Question 37

In an origin contract,when does title pass to the buyer?

A)When goods are identified to the contract
B)When the items are delivered to the buyer
C)At the time and place of shipment
D)When money is transferred to the seller
E)One day after goods are identified to the contract

Question 38

With a simple delivery contract,when is an insurable interest in the buyer created?

A)When the goods are identified to the contract
B)When goods are identified to the buyer
C)When money is transferred
D)When the items are delivered
E)When the buyer takes possession

Question 39

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

A)An average delivery contract
B)A conditional sales contract
C)A goods-in-transfer contract
D)A simple delivery contract
E)A goods-in-bailment contract

Question 40

Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or a later time by the seller's delivery?

A)A complex delivery contract
B)A voidable delivery contract
C)An average delivery contract
D)A simple delivery contract
E)An acknowledged sale

Question 41

Which of the following is true when the designation FAS is used?

A)The buyer,at the buyer's expense,delivers the goods alongside the ship before the risk passes to the seller.
B)The buyer,at the seller's expense,delivers the goods alongside the ship before the risk passes to the seller.
C)The seller,at the buyer's expense,delivers the goods alongside the ship before the risk passes to the buyer.
D)The seller,at the seller's expense,delivers the goods alongside the ship before the risk passes to the buyer.
E)The common carrier,at the carrier's expense,delivers the goods alongside the ship before the risk passes to the buyer.

Question 42

What does "FAS" mean,when used as a shipping term?

A)Freedom Alongside
B)Fee as Selected
C)Found as Selected
D)Found as Seen
E)Free Alongside

Question 43

What does "FOB" mean,when used as a shipping term?

A)Freedom of Board
B)Free on Board
C)Free of Basis
D)Fee on Basis
E)Fee on Board

Question 44

What is the term for the kind of title Doris had?

A)Void
B)Absolute
C)Good
D)Illegal
E)Voidable

Question 45

Which of the following statements accurately describes conditional contracts?

A)Sale-on-approval contracts and sale-or-return contracts,but not condition-or-sale contracts
B)Sale-on-approval contracts,sale-or-return contracts,and condition-or-sale contracts
C)Sale-on-approval contracts,but not sale-or-return or condition-or-sale contracts
D)Sale-or-return contracts and condition-or-sale contracts,but not sale-on-approval contracts
E)Condition-or-sale contracts and sale-on-approval contracts,but not sale-or-return contracts

Question 46

In a conditional sales contract,a contract is a ________ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

A)Sale-on-approval contract
B)Condition-or-sale contract
C)Return-or-purchase
D)Sale-or-return contract
E)Return-or-sale

Question 47

In a goods-in-bailment contract,what does "deliver to the order of seller" indicate?

A)A nonnegotiable document
B)A negotiable document
C)A shipment contract
D)An origin contract
E)An execution contract

Question 48

Which statement is correct regarding CIF agreements?

A)Risk of loss occurs when goods are identified to the contract.
B)Risk of loss remains with the seller for 5 days after the sale.
C)Risk of loss remains with the seller for 5 days before the sale.
D)Risk of loss occurs when the goods are delivered to the buyer.
E)The seller puts the goods in possession of a carrier before the risk passes to the buyer.

Question 49

Which of the following is true regarding transportation costs when the designation FOB is used?

A)The buyer and seller with the loss being proportioned 75% to the buyer and 25% to the seller.
B)The buyer and seller with the loss being proportioned 25% to the buyer and 75% to the seller.
C)The selling price does not include transportation costs.
D)The selling price includes transportation costs.
E)The buyer and seller bear transportation costs with the costs apportioned at a rate of 50% to the buyer and 50% to the seller.

Question 50

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

A)If a seller does not provide goods as described in a contract,the buyer may reject the goods subject to the seller's curing the deficiency in the goods,but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible.
B)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages,but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible.
C)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,or the buyer may reject the goods subject to the seller's curing the deficiency in the goods;but the buyer may not simply reject the goods.
D)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods,but the buyer may not reject the goods subject to the seller's curing the deficiency.
E)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,reject the goods subject to the seller's curing the deficiency in the goods,or reject the goods if no cure is possible.

Question 51

What does the term CIF when used as a shipping term represent?

A)Cost,insurance,and freight
B)Cost,indemnity,and freight
C)Commerce,insurance,and freight
D)Collateral,insurance,and freight
E)Cost,insurance,and flight

Question 52

[Accidental Sale] Julio entrusted his automobile to Slick Sid's for repair.The manager of Slick Sid's,who did a very poor job with inventory,accidentally sold the car to Ramona.Ramona,who paid cash for the car,had no idea that the car did not belong to Slick Sid's and paid fair market value for it.When Julio went to pick up the car,he was very upset that it was gone.The manager of Slick Sid's told him that he was very sorry,but that his only recourse would be against Ramona.
What is the proper identifying term for Ramona?

A)An interested purchaser for value
B)A good-faith purchaser
C)A void purchaser
D)A voidable purchaser
E)A valid purchaser

Question 53

What is the term for the kind of title Ricky had?

A)Void
B)Illegal
C)Absolute
D)Good
E)Voidable

Question 54

The absence of the words "to the order of" indicates which of the following,in a goods-in-bailment contract?

A)A shipment contract
B)An origin contract
C)A negotiable document
D)A nonnegotiable document
E)Nothing,there is no such thing as a goods-in-bailment contract

Question 55

With goods in bailment,when is an insurable interest created?

A)When either party has title,risk of loss,or other economic interest attached to the goods
B)Two days after either party has title to the goods
C)When either party has title or a risk of loss,but not under any other circumstances
D)Only when either party has title to the goods
E)Never.There is no such thing as an insurable interest in a goods-in-bailment contract

Question 56

Which of the following references goods that are in some kind of storage so the seller cannot transfer physical possession of them?

A)General to contract
B)Stored in transit
C)Stored pending payment
D)Goods in transit
E)Goods in bailment

Question 57

Which statement is true regarding the manager's assertion that Jamila has a good title,assuming the car was in fact stolen?

A)The manager is incorrect because Jamila has voidable title.
B)The manager is correct only if Jamila can establish true consumer status meaning that she had not bought or sold over three cars in the previous year.
C)The manager is correct only if Jamila can establish true consumer status meaning that she had not bought or sold over three cars in the previous six months.
D)The manager is correct.
E)The manager is incorrect because Jamila has void title.

Question 58

[Used Car Problems] Jamila purchased a used car from Slick Sid's car dealership.Six months later the police seized the car from Jamila on the basis that it was a stolen vehicle.Jamila asked for her money back from Slick Sid's.The manager of Slick Sid's told her that the car was not stolen,but that even if it were,Slick Sid's acted in good faith with no knowledge of a theft;and that,therefore,Jamila,as a good-faith purchaser,had a good title.Slick Sid's had also sold a used car to Hiro who wrote a bad check for the car and left town,but not before selling the car to Doris.Doris purchased the car with no knowledge of any problem with the check.Slick Sid's asked Doris to return the car,but she refused.She explained that she had given the car to her son,Ricky.
If Jamila's car was stolen prior to delivery to Slick Sid's,and no one at the car dealership knew,what kind of title did Slick Sid's have?

A)Voidable so long as no manager of Slick Sid's had made an affirmative representation that the car was not stolen.
B)Voidable so long as Slick Sid's can prove that it had never been charged with dealing in stolen merchandise.
C)Void
D)Good
E)Voidable so long as Slick Sid's can prove that none of its representatives were negligent in disregarding evidence of the theft at any time prior to its resale to Jamila.

Question 59

What is the term for the kind of title Hiro had?

A)Illegal
B)Voidable
C)Absolute
D)Good
E)Void

Question 60

In a conditional sales contract,a contract is a ________ when the seller and buyer agree that the buyer may return the goods at a later time.

A)Sale-or-return contract
B)Return-or-purchase
C)Condition-or-sale contract
D)Sale-on-approval contract
E)Return-or-sale

Question 61

[Singapore Sculptures] Mavis purchased a sculpture for her home in Hawaii from Juno,who owns an art gallery in Singapore.Mavis tells Juno she is concerned about shipping because there is no agreement between Singapore and Indonesia regarding piracy and she wants to ensure that Juno will be responsible for any damage to the sculpture until Mavis can pick it up on the dock when the ship arrives in Hawaii.Juno tells Mavis there are no longer any piracy concerns in the area and that he will be responsible for the sculpture until it is removed from the ship in Hawaii.Another customer,Adler,also purchases a sculpture.Juno delivers both sculptures to the dock.Mavis' sculpture is accompanied by their contract and Adler's sculpture is accompanied by a document containing the words "Deliver to the Order of Juno",and is endorsed by Juno.The ship travels through a storm,capsizes,and the sculptures are destroyed.
What shipping term should Mavis include in the contract to ensure Juno carries the risk of loss until the sculpture leaves the ship?

A)Delivery ex ship
B)C&F
C)FAS
D)FOB
E)CIF

Question 62

What type of document is the one containing the words "Deliver to the Order of JunoAdler",which accompanies Adler's sculpture?

A)A good in bailment
B)A non-negotiable document of title
C)A contract
D)A negotiable document of title.
E)Another type of instrument showing ownership that is not a negotiable or nonnegotiable document of title.

Question 63

Frieda purchased a large desk at a garage sale.She asked the seller if she could leave the desk at the side of the road so she could go home and get her pickup truck.When she returned,she found that the desk had been struck by a car and demolished.Can Frieda get her money back?

A)Yes,because the seller allowed Frieda to leave the goods until she takes possession.
B)No,because the desk was available for Frieda to take when she purchased it and thus she bore the risk of loss.
C)No,because,even though the desk was available for Frieda to take when she purchased it,the risk of loss does not transfer until delivery.
D)Yes,because the risk of loss does not transfer until she takes possession.
E)Yes,because the goods were not tendered until she takes possession.

Question 64

In the text's case of National Compressor Corp.v.Carrow and McGee,the court considered whether a buyer,who purchased a compressor that was subsequently destroyed in a fire on a third party's premises before the buyer took possession,had an insurable interest since title had not yet passed and thus could bring suit against the third party.What was the court's ruling?

A)The Buyer could not sue the third party because title had not passed and thus,it did not have an insurable interest.
B)The Buyer had an insurable and special interest but could not sue the third party because the goods had not been identified to the contract.
C)The Buyer could not sue the third party because it did not have an insurable and special interest.
D)The Buyer had an insurable and special interest and could sue the third party because regardless of whether or not goods had been identified to the contract.
E)The Buyer had an insurable and special interest and could sue the third party because the goods had been identified to the contract.

Question 65

Which statement about the risk of loss at the time the goods were damaged is correct?

A)The risk of loss was split 50-50 between Ivan and Smith-Napa.
B)The risk of loss was with Ivan only if the driver is determined to be an agent of Smith-Napa.
C)The risk of loss was with Ivan.
D)The risk of loss was with Smith-Napa only if the driver is determined to be an agent of Smith-Napa.
E)The risk of loss was with Smith-Napa.

Question 66

Jonas sold his motorcycle to his co-worker's brother,Byron,who gave Jonas a check and took the motorcycle home.When Jonas goes to cash Byron's check he discovers the check is denied for insufficient funds.What recourse does Jonas have?

A)Jonas has the right to cancel the contract and reclaim his motorcycle because Byron's title is voidable.
B)Jonas can do nothing
C)Jonas has the right to demand the payment due him under the contract.However,title passed to Byron because Jonas was not aware of the bad check at the time of delivery.
D)If Byron re-sells the motorcycle to a third party,then Byron can reclaim the motorcycle from the third-party.
E)Jonas has the right to reclaim his motorcycle because Byron's title is void.

Question 67

Ramona's rights to the car are best summarized by which of the following statements?

A)Ramona must return the car to the repair shop.
B)Ramona can keep the car only if the repair shop voluntarily agrees to pay Julio the fair market value of the car.
C)Ramona can keep the car without paying anyone anything only if the repair shop is bankrupt or insolvent.
D)Ramona can keep the car without paying anyone anything extra.
E)Ramona must give the car to Julio.

Question 68

Which of the following statements is true about an insurable interest?

A)It is not relevant when an insurable interest is created.
B)Both the buyer and seller can insure themselves for potential damage to goods
C)Only the seller can insure itself for potential damage to goods.
D)An insurable interest is the right to insure goods in one's possession.
E)Only the buyer can insure itself for potential damage to goods.

Question 69

Who has the risk of loss for the sculpture purchased by Adler?

A)Adler,because Juno endorsed a negotiable instrument to him.
B)The ship,because it had possession of the sculpture at the time of the loss.
C)Juno,because the document contained the words "deliver to the order of Adler".
D)Adler,because the contract was silent as to who bore the risk of loss.
E)Juno,because the contract was silent as to who bore the risk of loss.

Question 70

Are Mavis' concerns about a lack of agreement between Singapore and Indonesia accurate?

A)No,both countries have signed an agreement that aims to halt piracy.
B)Yes,there are no anti-piracy agreements between the two countries.
C)Yes,there are no agreements between the two countries that affect shipping.
D)Yes,even though there are agreements between the two countries,they have taken no steps to halt piracy.
E)No,although the countries have not signed an agreement that aims to halt piracy,there are no risks involved in shipping on international waters.

Question 71

With regard to the damage to the formal ball gowns,who bears the risk of loss?

A)Cleo,because she is the buyer in a sale-or-return contract
B)Cleo,because under a sale-or-return contract,she can return the dresses.
C)Cleo,because the dresses are goods in bailment
D)Kool Klothes,because it is the seller in a sale-or-return contract
E)Kool Klothes,because it is a merchant and in a simple delivery contract,risk of loss transfers on delivery of the goods to the buyer

Question 72

[Wrecked Toaster] Ivan goes to upscale housewares store Smith-Napa to buy himself a nice new toaster,because his old one broke.The store does not have the model he wants in stock,but they can have it shipped from the warehouse directly to Ivan.It is agreed that the toaster will be placed with a common carrier for delivery.The contract between Ivan and Smith-Napa is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ivan's home.Unfortunately,on the way to Ivan's home,through no fault of the delivery driver,the delivery truck was involved in a collision,and the toaster was damaged beyond repair.
Ivan and Smith-Napa entered into which of the following contracts?

A)A conditional delivery contract
B)A common-carrier delivery contract
C)A trucking contract
D)A goods-in-bailment contract
E)A conditional sales contract

Question 73

Tasha buys a bicycle from Kelvin.Jeremy steals the bicycle from Tasha,and then sells it to Bronson.Bronson gives the bicycle to his nephew,Cedric as a gift.Who has the good title to the bicycle?

A)Tasha
B)Jeremy
C)Kelvin
D)Cedric
E)Bronson

Question 74

What is the term used for the goods while they are in storage on board the ship?

A)Goods on board
B)Free on board
C)Goods in storage
D)Free on bailment
E)Goods in bailment

Question 75

What was the court's ruling in City of Richmond v.Petroleum Marketers,Inc. ,the case in the text in which the court considered where the sale of petroleum occurred-where the contracts for the purchase of the oil were executed or where the goods were,in fact,delivered?

A)Title to the petroleum passed when the product was pumped into whatever facility the buyer provided.
B)Title to the petroleum passed when the product was pumped out of the seller's holding tank and into the seller's rented tanks.
C)Title did not pass when the product was pumped out of the seller's holding tank.
D)Goods were identified to the contract when the product was pumped out of the seller's holding tank and into the seller's rented tanks.
E)Title did not pass when the product arrived at the buyer's facility.

Question 76

Assuming Adler must bear the risk of loss of his sculpture,if he sues the ship to recover damages,would the lawsuit likely be dismissed?

A)Yes,because Adler bears the risk of loss according to his contract with Juno.
B)No,because Adler had an insurable and special interest and,thus,has standing to sue.
C)No,because the ship was not at fault.
D)Yes,because Adler did not have an insurance interest in the sculpture.
E)Yes,because the ship was not a party to the contract.

Question 77

Cora,an artist,entrusts her paintings with Kasper,the owner of an art gallery.Kasper sells Cora's paintings to Gianni.What kind of title does Gianni have?

A)Voidable title,but only because the sale is contingent upon Cora's approval.
B)Good title,but only if Cora approves of the sale.
C)Voidable title,because Kasper had no title at all.
D)Good title,but only because Cora and Kasper had good title.
E)Good title,even though Kasper had no title at all.

Question 78

Is the manager correct in saying that Julio's only recourse is against Ramona?

A)The manager is incorrect,and Julio can sue Slick Sid's.
B)The manager is correct.
C)The manager is incorrect only if Julio has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
D)The manager is correct only if Ramona's deal was for less than 10% of the fair market value of the car.
E)The manager is correct only if Ramona can be found.

Question 79

Because the contract was ambiguous about whether the seller had the duty to deliver the goods to either the common carrier's hands or all the way to Ivan's home,what type of contract is presumed?

A)Voidable
B)Transit
C)Location
D)Origin
E)Destination

Question 80

What type of contract does Cleo have with Kool Klothes?

A)Simple Delivery Contract
B)Goods In Bailment Contract
C)Sale-On-Approval Contract
D)Common Carrier Delivery Contract
E)Sale-Or-Return Contract