Question 1

a. What is an insurable interest? At what point in a sales transaction does the buyer get an insurable interest? 
b. Is the buyer the only one who has an insurable interest in the goods? Is it possible for both the buyer and the seller to simultaneously hold an insurable interest? Explain.

Accepted Answer

The answer of a. What is an insurable interest? At...

Question 2

Explain what a trial sale is. Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types. Discuss transfer of title and risk or loss with each type of trial sale.

Accepted Answer

The answer of Explain what a trial sale is. Identify...

Question 3

a. What is a bulk transfer? 
b. What is the purpose of bulk sales law? 
c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

Accepted Answer

The answer of a. What is a bulk transfer? 
b....

Question 4

How has the Code affected the rights of good faith purchasers with respect to minors?

Accepted Answer

The answer of How has the Code affected the rights...

Question 5

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

Accepted Answer

In the case of goods covered by a negotiable document of title and in the possession of a bailee, the risk of loss passes to the buyer when the buyer receives the document.

Question 6

a. Arthur brings his new computer to the Quick Fix Repair Shop to be fixed. Two days later, a buyer comes into the shop, and Quick Fix inadvertently sells Arthur's computer. Arthur now wants his computer back. Can Arthur get his computer back? Explain. 
b. Why do you think the Code follows this rule in situations such as the one above? Explain.

Accepted Answer

The answer of a. Arthur brings his new computer to...

Question 7

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

Accepted Answer

In the case, it was illustrated that unless the parties specify otherwise, a contract is generally considered to be a shipment contract, meaning the seller's obligation is to deliver the goods to a carrier for delivery to the buyer.

Question 8

The Heinrich v. Titus-Will Sales, Inc. case stands for the principle that:

Accepted Answer

The case establishes that a buyer in the ordinary course of business acquires good title when buying from a merchant seller who was entrusted with possession of the goods, even if the seller does not have title.

Question 9

Everett bought a washer and dryer for $1,200 from Neely Appliances, which was to deliver the set in two days, on its regular delivery date for Everett's area. However, on the night of the sale, Neely's suffered an accidental fire and the washer and dryer were destroyed. Who has the risk of loss? Who would have the risk of loss if Everett had instead bought a used washer and dryer from his neighbor who was having a moving sale, and the washer and dryer were destroyed after Everett had paid for them and after the neighbor made them available to Everett but before he picked them up?

Accepted Answer

The answer of Everett bought a washer and dryer for...

Quiz 21: Transfer of Title and Risk of Loss

a. What is an insurable interest? At what point in a sales transaction does the buyer get an insurable interest? b. Is the buyer the only one who has an insurable interest in the goods? Is it possible for both the buyer and the seller to simultaneously hold an insurable interest? Explain.

Explain what a trial sale is. Identify the two types of trial sales recognized by the UCC and explain the test for distinguishing between the two types. Discuss transfer of title and risk or loss with each type of trial sale.

a. What is a bulk transfer? b. What is the purpose of bulk sales law? c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?

How has the Code affected the rights of good faith purchasers with respect to minors?

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

The Windows, Inc. v. Jordan Panel Systems Corp. case illustrated the concept that:

The Heinrich v. Titus-Will Sales, Inc. case stands for the principle that: