Business Law Ch. 19
identification of goods
distinguishing the goods named in a contract from the seller's or lessor's other goods
sale or return contract
a contract in which the seller delivers goods to a buyer with the understanding that the buyer may return them if they are not used or resold within a stated or reasonable period of time
destination contract
a contract that requires the seller to deliver the goods either to the buyer's place of business or to another destination specified in the sales contract
shipment contract
a contract that requires the seller to ship the goods to the buyer via a common carrier
bailee
a holder of goods who is not a seller or buyer. ex. warehouse
good faith subsequent lessee
a person to whom a lease interest can be transferred from a person with voidable title. the real owner cannot reclaim the goods from the subsequent lessee until the lease expires.
good faith purchaser for value
a person to whom good title can be transferred from a person with voidable title. the real owner cannot reclaim goods from a good faith purchaser for value
buyer in the ordinary course of business
a person who in good faith and without knowledge that the sale violates the ownership or security interests of a third party buys goods in the ordinary course of business from a person in the business of selling goods of that kind. a buyer in the ordinary course of business takes the goods free of any third-party security in the goods.
void title
a situation in which a thief acquires no title to goods he or she steals. also known as a void leasehold interest
voidable title
a title that a purchaser has if the goods were obtained by (1) fraud, (2) a check that is later dishonored, or (3) impersonation of another person. also known as voidable leasehold interest
sale on approval
a type of sale in which there is no actual sale unless and until the buyer accepts the goods
document of title
an actual piece of paper, such as a warehouse receipt or bill of lading, that is required in some transactions of pickup and delivery
consignment
an arrangement in which a seller (the consignor) delivers goods to a buyer (the consignee) to sell
future goods
goods net yet in existence (ex. ungrown crops, unborn stock animals)
title
legal, tangible evidence of ownership of goods
shipment contract-risk
the buyer bears the risk of loss during transportation
destination contract-risk
the seller bears the risk of loss during transportation