Pipe Company orders six irrigation pumps from Quality Pumps Inc. The pumps are stored in Re-storage Warehouse. Under the terms of the order, Quality must give Pipe a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipe when
A)Quality stores the pumps.
B)Pipe orders the pumps.
C)Pipe picks up the pumps.
D)Quality gives Pipe the warehouse receipt.

Question

Quizplus · Accepted Answer

Title to the goods passes to Pipe when Quality gives Pipe the warehouse receipt, as this document serves as proof that Quality has fulfilled its obligation to deliver the goods into a storage facility on behalf of Pipe, effectively transferring ownership.

Pipe Company Orders Six Irrigation Pumps from Quality Pumps Inc