Chapter 20 Business Law

Under which of the following circumstances does risk of loss pass to a buyer when goods are held by a bailee?

when the buyer obtains a negotiable document of title when the bailee acknowledges the buyer's right to possess the goods

When does a buyer obtain an insurable interest in goods?

when the goods have been identified

Under the Uniform Commercial Code (UCC), risk of loss passes to the buyer:

whenever the contract designates it to pass

Before title to goods can pass under the UCC, the goods must be:

identified and in existence

A receipt for goods being transported that is signed by the carrier and serves as a contract for the transportation of goods is called a:

bill of lading

When does title to stolen goods transfer?

never

When a non-merchant sells a good to a buyer at the seller's location, the risk of loss passes to the buyer:

on tender of delivery

The default provision of the Uniform Commercial Code (UCC) is that, unless otherwise specified, title to goods being sold passes when:

the goods are physically delivered to the buyer

In a shipment contract:

the seller is required to ship goods but is not required to deliver them to a particular destination before risk of loss transfers to the buyer.

Void title means:

there is no legal title