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Jack and Reba Purchased Some Furniture on a Conditional Sale

Question 12

Multiple Choice

Jack and Reba purchased some furniture on a conditional sale contract.This couple carries no insurance on their household goods.The furniture is stolen one Sunday afternoon.Who will most likely take the loss?


A) the thieves,since this is a liability claim and they are to blame
B) the merchant,since they still hold title and have insurance covering their insurable interests
C) the state,since this is a criminal case
D) the bailee,since this is a bailment for value on the sale of goods
E) this couple,because the conditional sale contract gives them strict liability

Correct Answer:

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