Question 1

Red's Roofing buys asphalt roofing tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles's warehouse" to Red's Roofing location via Tristate Shipping Corporation.The tiles are lost in transit.The loss is suffered by​

Accepted Answer

As the terms of the agreement stated that the shipment was F.O.B. Shingles's warehouse, the risk of loss or damage during transit is transferred to Red's Roofing once the tiles leave Shingles's premises. Therefore, Red's Roofing bears the risk of loss in this situation.

Question 2

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp,Inc.Unless the contract states otherwise,it is assumed to be​

Accepted Answer

A shipment contract means that the seller is responsible for delivering the goods to the carrier, and the buyer is responsible for arranging the delivery from the carrier to the final destination. This is the most common type of contract in commercial transactions and is typically assumed if the contract does not state otherwise. Therefore, in this case, unless the contract states otherwise, it is assumed to be a shipment contract.

Question 3

Ursula buys a Verismooth boat from a Watercraft store,which agrees to keep the boat for Ursula until she picks it up.Before Ursula gets the boat,an unforeseen tornado destroys the store and the boat.The loss of the boat is suffered by​

Accepted Answer

The loss of the boat is suffered by the Watercraft store since they were in possession of the boat at the time of the destruction. Ursula had not taken possession of the boat yet, and Verismooth is not responsible for the loss as it was not their fault that the store was destroyed by a tornado. The government agency is also not responsible for the natural disaster.

Question 4

Varoom Motors,Inc.,allows Weber to take a Xtrem-brand motorcycle for a "test run." Weber tries the cycle for a few hours,returns,and buys it.This is​

Accepted Answer

This is a sale on approval, as Weber was allowed to test the motorcycle and then decided to purchase it. In a sale on approval, the buyer has the option to return the goods if they are not satisfied with them after the trial period.

Question 5

Elizabeth buys a car from Silas,who is 16 years old.Elizabeth then wants to sell the car to her neighbor,John.Elizabeth's title to the car is​

Accepted Answer

Silas is not of legal age to enter into a contract, therefore any contract he enters into (including the sale of the car to Elizabeth) is voidable. This means Elizabeth's title to the car could be challenged by Silas or his legal guardian. However, if Silas or his guardian does not challenge the sale within a reasonable amount of time, Elizabeth's title would become good. Therefore, the title is not void, but rather voidable.

Question 6

Pam buys from Midtown Motors a used sport utility vehicle (SUV).The SUV was manufactured by Gem Vehicles,Inc.,and previously owned by Ron.Regarding title to the SUV,Pam acquires​

Accepted Answer

When Pam purchases the used SUV from Midtown Motors, she acquires whatever title Midtown had to transfer to her. However, it is important to note that this title may not necessarily be free and clear of any liens or encumbrances, so Pam should make sure to conduct a thorough investigation of the SUV's history and current status before completing the purchase.

Question 7

Brad leaves an iPod at Computer Sales & Repair (CSR)to have the battery replaced.CSR sells the iPod to Doris,who does not know that it belongs to Brad.Brad can recover from​

Accepted Answer

CSR did not have the right to sell the iPod as it belonged to Brad, who left it for repair. Brad can recover from CSR for the wrongful sale of his property. Doris purchased the iPod unknowingly, so she is not liable. Apple, Inc. is not involved in this situation.

Question 8

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is​

Accepted Answer

The contract is a shipment contract because it specifies the delivery method for the goods (by Speedy Wind Air Freight). The other options do not apply to this scenario - a bill of lading typically functions as a receipt for goods being transported by a carrier, a destination contract would specify the place of delivery without specifying the delivery method, and a warehouse receipt would be issued by a warehouse to a party storing goods on behalf of another party.

Question 9

Safety Supply Corporation in New York sells a truckload of protective suits,masks,and other safety gear to Toxic Recovery,Inc.,in Connecticut,"F.O.B.New York." Safety Supply arranges with US Truckline to transport the goods.The cost of the transport will be paid by​

Accepted Answer

The answer of Safety Supply Corporation in New York sells...

Question 10

Fits Like A Glove Shoes,Inc.,and Retail Footwear Stores enter into a contract for a sale of shoes.The contract indicates that the price includes transportation costs to a specific destination by including the term​

Accepted Answer

The term F.O.B. (Free On Board) indicates that the price of the shoes includes transportation costs to a specific destination up to the point where the shoes are loaded on board a carrier, typically a truck or a ship. After that point, the buyer becomes responsible for any further transportation costs and risks associated with the delivery of the shoes.

Question 11

Growers Mart buys one hundred cases of berries from Hilltop Farms.The parties agree that the berries will be transported "F.O.B.Hilltop Farms" via Refrigerated Trucking Company.Refrigerated's truck and the berries are lost in a fire following an accident.The loss of the berries is suffered by​

Accepted Answer

The loss of the berries is suffered by Growers Mart because they purchased the berries from Hilltop Farms and agreed to transport them F.O.B. Hilltop Farms through Refrigerated Trucking Company. F.O.B. (Free on Board) indicates that the seller (Hilltop Farms) fulfills their obligation to deliver the goods by loading them onto the truck, and the buyer (Growers Mart) assumes responsibility for any damage or loss that occurs during transportation. Therefore, Growers Mart bears the risk of loss in this situation. The loss is not suffered by Hilltop Farms or Refrigerated Trucking because they fulfilled their obligations under the agreement.

Question 12

Home Appliance Corporation contracts with Instate Trucking Company to take a selection of appliance repair parts to Journey Airlines,Inc.,with Journey to transport the goods to a KeepSafe Company warehouse.Instate Trucking,Journey Airlines,and KeepSafe each acknowledge possession of the goods by a document of title.Instate Trucking,Journey Airlines,and KeepSafe are​

Accepted Answer

Instake Trucking, Journey Airlines, and KeepSafe Company all acknowledged possession of the goods by a document of title, which means that they are bailees - parties who hold goods owned by another for a specific purpose.

Question 13

Mountainside Coffee Company and Nature's Cuisine,Inc.,enter into a contract for a sale of coffee beans.The contract includes the term "F.O.B.Ocean City," which is the location of Nature's Cuisine.This means that the contract is

Accepted Answer

F.O.B. Ocean City indicates that the seller, Nature's Cuisine, bears the cost and risk of transporting the coffee beans to Ocean City, which is the destination. Therefore, it is a destination contract as opposed to a shipment contract where the seller bears the cost and risk until the goods are delivered to the carrier.

Question 14

Regan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when​

Accepted Answer

Generally, title to goods passes from the seller to the buyer upon delivery of the goods. Therefore, Sal's Clothing Shop physically delivering the dresses to the department store would be the best indication of when title passes. The other options (signing the contract, paying for the dresses) do not necessarily indicate when title passes.

Question 15

NutriRich,Inc.,sells fifty cases of Omega 3 capsules to Good Health stores,but before Good Health takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of​

Accepted Answer

The concept of "risk of loss" determines which party bears the loss in a situation where the goods are lost or damaged before delivery. In this case, since the loss occurred before delivery, the parties' rights and obligations will depend on who bore the risk of loss at the time the loss occurred.

Question 16

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce,Inc.The parties agree to ship the oranges "F.O.B.Quaff n' Quench " via Swiftline Trucking Company.The oranges rot in transit.The loss is suffered by​

Accepted Answer

The answer of Quaff n' Quench Café buys twenty-five crates...

Question 17

A contract between Fresh Fruit Corporation and Green Grocer,Inc.,re-quires Fresh Fruit to deliver goods to Green Grocer's place of business.This is​

Accepted Answer

The contract between Fresh Fruit Corporation and Green Grocer, Inc. is a destination contract because the agreement requires the goods to be delivered to Green Grocer's place of business. A bill of lading is a document that serves as evidence of the contract of carriage, a shipment contract is an agreement that requires the goods to be delivered to a carrier for transportation, and a warehouse receipt is a document that confirms the receipt of goods for storage.

Question 18

Roasters Corporation and Outdoor Barbecues,Inc.,enter into a contract for a sale of a commercial grill.The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor.Risk of loss passes to Outdoor when​

Accepted Answer

The contract specifies that Roasters must deliver the goods to Speedy for transport, indicating that delivery to Speedy is a crucial step in the process. Additionally, the contract does not specify any other conditions (such as Outdoor's use of the grill) as triggers for the transfer of risk, further supporting the conclusion that risk passes at the point of delivery to Speedy.

Question 19

Commercial Rents Corporation agrees to lease a pressure washer to Delivery Trucks,Inc.,which agrees to pick it up at E Street Warehouse.Before Delivery Trucks retrieves the washer,it is stolen.The loss is suffered by​

Accepted Answer

The lease agreement between Commercial Rents Corporation and Delivery Trucks, Inc. is still in effect and Delivery Trucks has not yet taken possession of the pressure washer. Therefore, the loss falls on Commercial Rents Corporation as the owner of the stolen property.

Question 20

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing,Inc.The pumps are stored in Restorers Warehouse.Under the terms of the order,Quality must give Pipes & Culverts a warehouse receipt for the goods,which the buyer will then pick up.Title to the goods passes to Pipes & Culverts when​

Accepted Answer

Title to the goods passes to Pipes & Culverts when Quality gives Pipes & Culverts a warehouse receipt for the drives.

Quiz 19: Title and Risk of Loss

Red's Roofing buys asphalt roofing tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles's warehouse" to Red's Roofing location via Tristate Shipping Corporation.The tiles are lost in transit.The loss is suffered by

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp,Inc.Unless the contract states otherwise,it is assumed to be

Ursula buys a Verismooth boat from a Watercraft store,which agrees to keep the boat for Ursula until she picks it up.Before Ursula gets the boat,an unforeseen tornado destroys the store and the boat.The loss of the boat is suffered by

Varoom Motors,Inc.,allows Weber to take a Xtrem-brand motorcycle for a "test run." Weber tries the cycle for a few hours,returns,and buys it.This is

Elizabeth buys a car from Silas,who is 16 years old.Elizabeth then wants to sell the car to her neighbor,John.Elizabeth's title to the car is

Pam buys from Midtown Motors a used sport utility vehicle (SUV) .The SUV was manufactured by Gem Vehicles,Inc.,and previously owned by Ron.Regarding title to the SUV,Pam acquires

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced.CSR sells the iPod to Doris,who does not know that it belongs to Brad.Brad can recover from

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is

Safety Supply Corporation in New York sells a truckload of protective suits,masks,and other safety gear to Toxic Recovery,Inc.,in Connecticut,"F.O.B.New York." Safety Supply arranges with US Truckline to transport the goods.The cost of the transport will be paid by

Fits Like A Glove Shoes,Inc.,and Retail Footwear Stores enter into a contract for a sale of shoes.The contract indicates that the price includes transportation costs to a specific destination by including the term

Growers Mart buys one hundred cases of berries from Hilltop Farms.The parties agree that the berries will be transported "F.O.B.Hilltop Farms" via Refrigerated Trucking Company.Refrigerated's truck and the berries are lost in a fire following an accident.The loss of the berries is suffered by

Mountainside Coffee Company and Nature's Cuisine,Inc.,enter into a contract for a sale of coffee beans.The contract includes the term "F.O.B.Ocean City," which is the location of Nature's Cuisine.This means that the contract is

Regan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when

NutriRich,Inc.,sells fifty cases of Omega 3 capsules to Good Health stores,but before Good Health takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce,Inc.The parties agree to ship the oranges "F.O.B.Quaff n' Quench " via Swiftline Trucking Company.The oranges rot in transit.The loss is suffered by

A contract between Fresh Fruit Corporation and Green Grocer,Inc.,re-quires Fresh Fruit to deliver goods to Green Grocer's place of business.This is

Roasters Corporation and Outdoor Barbecues,Inc.,enter into a contract for a sale of a commercial grill.The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor.Risk of loss passes to Outdoor when

Commercial Rents Corporation agrees to lease a pressure washer to Delivery Trucks,Inc.,which agrees to pick it up at E Street Warehouse.Before Delivery Trucks retrieves the washer,it is stolen.The loss is suffered by

Quiz 19: Title and Risk of Loss

Red's Roofing buys asphalt roofing tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles's warehouse" to Red's Roofing location via Tristate Shipping Corporation.The tiles are lost in transit.The loss is suffered by​

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp,Inc.Unless the contract states otherwise,it is assumed to be​

Ursula buys a Verismooth boat from a Watercraft store,which agrees to keep the boat for Ursula until she picks it up.Before Ursula gets the boat,an unforeseen tornado destroys the store and the boat.The loss of the boat is suffered by​

Varoom Motors,Inc.,allows Weber to take a Xtrem-brand motorcycle for a "test run." Weber tries the cycle for a few hours,returns,and buys it.This is​

Elizabeth buys a car from Silas,who is 16 years old.Elizabeth then wants to sell the car to her neighbor,John.Elizabeth's title to the car is​

Pam buys from Midtown Motors a used sport utility vehicle (SUV) .The SUV was manufactured by Gem Vehicles,Inc.,and previously owned by Ron.Regarding title to the SUV,Pam acquires​

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced.CSR sells the iPod to Doris,who does not know that it belongs to Brad.Brad can recover from​

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is​

Safety Supply Corporation in New York sells a truckload of protective suits,masks,and other safety gear to Toxic Recovery,Inc.,in Connecticut,"F.O.B.New York." Safety Supply arranges with US Truckline to transport the goods.The cost of the transport will be paid by​

Fits Like A Glove Shoes,Inc.,and Retail Footwear Stores enter into a contract for a sale of shoes.The contract indicates that the price includes transportation costs to a specific destination by including the term​

Growers Mart buys one hundred cases of berries from Hilltop Farms.The parties agree that the berries will be transported "F.O.B.Hilltop Farms" via Refrigerated Trucking Company.Refrigerated's truck and the berries are lost in a fire following an accident.The loss of the berries is suffered by​

Mountainside Coffee Company and Nature's Cuisine,Inc.,enter into a contract for a sale of coffee beans.The contract includes the term "F.O.B.Ocean City," which is the location of Nature's Cuisine.This means that the contract is

Regan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when​

NutriRich,Inc.,sells fifty cases of Omega 3 capsules to Good Health stores,but before Good Health takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of​

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce,Inc.The parties agree to ship the oranges "F.O.B.Quaff n' Quench " via Swiftline Trucking Company.The oranges rot in transit.The loss is suffered by​

A contract between Fresh Fruit Corporation and Green Grocer,Inc.,re-quires Fresh Fruit to deliver goods to Green Grocer's place of business.This is​

Roasters Corporation and Outdoor Barbecues,Inc.,enter into a contract for a sale of a commercial grill.The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor.Risk of loss passes to Outdoor when​

Commercial Rents Corporation agrees to lease a pressure washer to Delivery Trucks,Inc.,which agrees to pick it up at E Street Warehouse.Before Delivery Trucks retrieves the washer,it is stolen.The loss is suffered by​

Red's Roofing buys asphalt roofing tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles's warehouse" to Red's Roofing location via Tristate Shipping Corporation.The tiles are lost in transit.The loss is suffered by

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp,Inc.Unless the contract states otherwise,it is assumed to be

Ursula buys a Verismooth boat from a Watercraft store,which agrees to keep the boat for Ursula until she picks it up.Before Ursula gets the boat,an unforeseen tornado destroys the store and the boat.The loss of the boat is suffered by

Varoom Motors,Inc.,allows Weber to take a Xtrem-brand motorcycle for a "test run." Weber tries the cycle for a few hours,returns,and buys it.This is

Elizabeth buys a car from Silas,who is 16 years old.Elizabeth then wants to sell the car to her neighbor,John.Elizabeth's title to the car is

Pam buys from Midtown Motors a used sport utility vehicle (SUV) .The SUV was manufactured by Gem Vehicles,Inc.,and previously owned by Ron.Regarding title to the SUV,Pam acquires

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced.CSR sells the iPod to Doris,who does not know that it belongs to Brad.Brad can recover from

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is

Safety Supply Corporation in New York sells a truckload of protective suits,masks,and other safety gear to Toxic Recovery,Inc.,in Connecticut,"F.O.B.New York." Safety Supply arranges with US Truckline to transport the goods.The cost of the transport will be paid by

Fits Like A Glove Shoes,Inc.,and Retail Footwear Stores enter into a contract for a sale of shoes.The contract indicates that the price includes transportation costs to a specific destination by including the term

Growers Mart buys one hundred cases of berries from Hilltop Farms.The parties agree that the berries will be transported "F.O.B.Hilltop Farms" via Refrigerated Trucking Company.Refrigerated's truck and the berries are lost in a fire following an accident.The loss of the berries is suffered by

Regan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when

NutriRich,Inc.,sells fifty cases of Omega 3 capsules to Good Health stores,but before Good Health takes physical possession,the cases are lost.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce,Inc.The parties agree to ship the oranges "F.O.B.Quaff n' Quench " via Swiftline Trucking Company.The oranges rot in transit.The loss is suffered by

A contract between Fresh Fruit Corporation and Green Grocer,Inc.,re-quires Fresh Fruit to deliver goods to Green Grocer's place of business.This is

Roasters Corporation and Outdoor Barbecues,Inc.,enter into a contract for a sale of a commercial grill.The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor.Risk of loss passes to Outdoor when

Commercial Rents Corporation agrees to lease a pressure washer to Delivery Trucks,Inc.,which agrees to pick it up at E Street Warehouse.Before Delivery Trucks retrieves the washer,it is stolen.The loss is suffered by