Summit Sales Corporation orders goods from OverStock Company. Summit plans to market the goods to consumers generally. OverStock identifies the goods. Before they are shipped to Summit, an insurable interest in the goods exists in

Question

Quizplus · Accepted Answer

Both Summit and OverStock have an insurable interest in the goods before they are shipped. OverStock has an interest as the seller and owner until delivery, and Summit has an interest as the buyer once the goods are identified to the contract. Consumers generally do not have an insurable interest at this stage.

Summit Sales Corporation Orders Goods from OverStock Company