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
A) Quality stores the drives.
B) Pipes & Culverts orders the drives.
C) Pipes & Culverts picks up the drives.
D) Quality gives Pipes & Culverts a warehouse receipt for the drives.

Question

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
A) ​Quality stores the drives.
B) ​Pipes & Culverts orders the drives.
C) ​Pipes & Culverts picks up the drives.
D) ​Quality gives Pipes & Culverts a warehouse receipt for the drives.

Quizplus · Accepted Answer

Title to the goods usually passes to the buyer when the seller delivers a warehouse receipt for the goods. In this case, Quality Plumbing, Inc. must give Pipes & Culverts a warehouse receipt for the pumps, and title to the goods will pass to Pipes & Culverts when they receive the warehouse receipt. Therefore, the correct answer is D - Quality gives Pipes & Culverts a warehouse receipt for the drives.

Pipes & Culverts Company Orders Six Irrigation Pumps from Quality