Varoom Motors,Inc.,sells Weber an Xtrem-Sport motorcycle. The cycle is held by Yeoman's Warehouse for delivery to Weber at Yeoman's location. Risk of loss passes to Weber when she receives
A)acopy of the sales contract from Varoom.
B)acertificate of title from the state.
C)a negotiable document of title from Yeoman.
D)none of the choices.

Question

Quizplus · Accepted Answer

Risk of loss passes under the Uniform Commercial Code (UCC) when the buyer receives a negotiable document of title. Therefore, choice C is the best answer. The sales contract and certificate of title are not sufficient to transfer the risk of loss.