Title to Goods Risk of Loss
At common law, the risk of loss to goods is placed on the party that has the insurable interest.
False
F.O.B. Burlington, Vermont requires the seller to arrange to ship goods and put the goods in the carrier's possession.
False
A seller's duty in an F.O.B. destination contract with respect to delivering the goods ends upon placing the goods in the hands of the common carrier.
False
A thief can transfer good title to stolen goods, as long as the other person purchased them in good faith.
False
If goods are held by the seller to be picked up by the buyer, the risk of loss passes to the buyer upon "tender of delivery," if the seller is a merchant.
False
The general rule for passage of title is that title passes when the buyer acquires possession of the goods.
False
The issuing bank for a letter of credit is called the correspondent bank.
False
Title to goods may pass from the seller to the buyer before the goods are identified to the sales contract.
False
Under the UCC, for risk of loss purposes, the "sale on consignment" is treated like a "sale on approval."
False
Under the UCC, the risk of loss depends on who had title to the goods.
False
When the seller breaches, the risk of loss often passes to the buyer sooner than it otherwise would.
False
A consignment is treated as a sale or return under the UCC.
True
A merchant-seller bears the risk of loss between the time of contracting and the time the buyer picks up the goods.
True
Both the buyer and seller of goods can have an insurable interest in the same goods at the same time.
True
If no document of title is needed, and the goods are identified at the time of contracting, title passes at the time of contracting.
True
In a consignment, the seller is also known as the consignor.
True
In a lease transaction, title to the leased goods remains with either the lessor or a third party.
True
One who has voidable title can transfer good title to a good faith purchaser for value.
True
The function of a letter of credit is to substitute the credit of a recognized international bank for that of the buyer.
True
Unborn animals are identified when they are conceived.
True
A breach by the buyer will shift the risk of loss to the buyer as soon as the breach occurs if the risk has not already shifted.
True
A destination contract requires the seller to deliver to either the buyer's place of business or to another destination specified in the sales contract.
True
A shipment contract requires the seller to ship the goods to the buyer via a common carrier.
True
Acceptance of a sale on approval can occur if the buyer uses the goods inconsistently with the purpose of the trial.
True
C.I.F is a pricing term that indicates the seller is responsible for paying the cost of the goods that are the subject of the sale as well as insurance and freight for their delivery.
True
Chairs in a warehouse are identified to a sale contract when the seller explicitly selects and separates the chairs for shipment to the buyer.
True
For goods to be selected from like items in inventory, identification cannot occur until the specific goods for the specific customer are separated or tagged for that customer.
True
If a contract for the sale of goods is F.O.B. Minneapolis and the seller is in Minneapolis and the buyer is in Chicago, the contract is a shipment contract.
True
If a good faith purchaser for value acquires goods from another good faith purchaser, but the goods were stolen at some point in the past, the last good faith purchaser does not obtain good title.
True
If a seller delivers nonconforming goods to a buyer and the buyer rejects them, the risk of loss remains on the seller until either the defect is cured or the buyer accepts the nonconforming goods.
True
If an owner brings a computer to a store to be repaired and the store accidentally sells it to a customer who is a buyer in the ordinary course of business, the buyer from the store has ownership priority over the original owner.
True
If the parties do not have a specific agreement regarding the assessment of the risk of loss, the UCC mandates who will bear the risk.
True
In a sale or return, risk of loss passes to the buyer when the buyer takes possession of the goods.
True
In a shipment contract, risk of loss passes to the buyer when the goods are delivered to the common carrier.
True
In an F.O.B. destination contract, the seller must replace the goods if they are lost in transit.
True
The parties to a contract may decide when title and risk of loss pass, but if the parties do not specifically agree on such a time, the UCC provides rules for them.
True
The unborn young of stock animals are considered future goods.
True
Title for goods cannot pass before the goods are identified to the contract.
True
Under common law, the risk of loss was based on who had title to the goods.
True
With letters of credit in international transactions, a bill of lading is issued by the common carrier.
True