Megan, an agent for Nabob's, a department store, orders one hundred dresses from Original Designs Inc. Absent a specific agreement between the parties to the contrary, title will pass to Nabob's when
A) Megan signs the contract.
B) Original Designs signs the contract.
C) Original Designs physically delivers the dresses.
D) Nabob's pays for the dresses.

Question

Megan, an agent for Nabob's, a department store, orders one hundred dresses from Original Designs Inc. Absent a specific agreement between the parties to the contrary, title will pass to Nabob's when
A) ​Megan signs the contract.
B) ​Original Designs signs the contract.
C) ​Original Designs physically delivers the dresses.
D) ​Nabob's pays for the dresses.

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), title passes to the buyer (Nabob's) when the seller (Original Designs) physically delivers the goods to the buyer. Therefore, title will pass to Nabob's when Original Designs physically delivers the dresses, as stated in option C.

Megan, an Agent for Nabob's, a Department Store, Orders One