Question 1

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...

Question 2

The Heinrich v.Titus-Will Sales,Inc.case stands for the principle that:
A)the UCC requires proper state licensing for a company claiming to be a merchant to actually have merchant status.
B)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.
C)risk of loss depends on who has title to the goods at the time the goods are damaged or destroyed.
D)a void title is no title.

Accepted Answer

The Heinrich v.Titus-Will Sales, Inc. case established that a buyer in the ordinary course of business obtains good title to a product when purchasing from a merchant seller who was entrusted with possession of the goods. This is also known as the entrustment rule.

Question 3

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 the...

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?
A)Risk of loss passes when the buyer receives the document.
B)Risk of loss passes when the document is tendered to the buyer.
C)Risk of loss passes when notification of the arrival of the goods is given to the buyer.
D)If the buyer is a merchant, risk of loss passes to the buyer when the goods are delivered.

Accepted Answer

The answer of Which of the following is correct with...

Question 6

The Windows,Inc.v.Jordan Panel Systems Corp.case illustrated the concept that:
A)unless the parties expressly specify that the contract requires the seller to deliver to a particular destination, the contract is generally considered to be a shipment contract.
B)unless the parties expressly designate the type of contract, it will be interpreted to be a destination contract.
C)goods in the possession of a bailee which are to be delivered without being moved will have the risk of loss pass to the buyer when the buyer receives a negotiable document of title.
D)express, specific provisions in a contract control as long as they are not unconscionable or grossly unfair to one of the parties.

Accepted Answer

The case illustrates that unless the parties expressly specify that the contract requires the seller to deliver to a particular destination, the contract is generally considered to be a shipment contract.

Question 7

The Code has enlarged the common law voidable title doctrine by providing that a good faith purchaser for value obtains title from one possessing voidable title even if that person obtained voidable title by:
a.criminal fraud punishable as larceny.
b.fraud as to her identify.
c.exchange for a subsequently dishonored check.
d.an agreement that the transaction was to be a cash sale, and the sales price has not been paid.
e.All of the above.

Accepted Answer

The answer of The Code has enlarged the common law...

Quiz 21: Transfer of Title and Risk of Loss

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

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.

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: