Maria's Distributing Inc. sells 20 fax machines to Bill's Electronics Ltd. for $2,000 to be paid in 30 days. No other terms are agreed to. The fax machines are delivered to Bill's the next day. Forty-five days later, Bill's puts up a going out of business sign and advertises these fax machines at $50 each. Bill's has not made one payment to Maria's. Which of the following is true?

Question

Quizplus · Accepted Answer

Bill's Electronics Ltd. is the owner of the fax machines because ownership transferred upon delivery, despite the lack of payment. Maria's cannot repossess the machines without a specific agreement allowing repossession upon non-payment.