Exam 2 Chapter 19

buyers

(movement of loss) risk of loss is the _______ while the goods are in transit if destination contract is the same; lost in transit is the sellers loss

limitations

1. seller must have at least identified the goods 2. for commercially reasonable time after the seller learns of the breach 3. byer is only responsible (monetarily responsible)for and deficit in the sellers insurance converage

sale or return

A consignment is treated as​ a(n) _____ under the​ UCC; that​ is, title and risk of loss of the goods pass to the consignee when the consignee takes possession of the goods

warehouse receipt; bill of landing

A document of title is an actual piece of​ paper, such as a​ _____ or​ a(n)____, which is required in some transactions of pickup and delivery.

voidable

A purchaser has a​ _____ title on goods obtained by​ fraud, a check that is later​ dishonored, or impersonation of another person.

destination

A(n) _____ contract requires the seller to deliver the goods either to the​ buyer's place of business or to another destination specified in the sales contract

entrustment

According to the​ _____ rule, when an owner entrusts the possession of his or her goods to a merchant who deals in goods of that​ kind, the merchant has the power to transfer all rights​ (including title) to the goods to a buyer in the ordinary course of business

destination

A​ _____ contract requires the seller to deliver conforming goods to a specific destination.

shipment

A​ _____ contract requires the seller to deliver goods conforming to the contract to a carrier.

shipment

A​ _____ contract requires the seller to ship the goods to the buyer via a common carrier

void

A​ _____ title is a situation in which a thief acquires no title to goods he or she steals

sale or return

In a​ _____ contract, the seller delivers goods to a buyer with the understanding that the buyer may return the goods if they are not used or resold within a stated or reasonable period of time.

sale on approval

In a​ _____, there is no sale unless and until the buyer accepts the goods

lessee's receipt

In the case of an ordinary​ lease, if the lessor is a​ merchant, the risk of loss passes to the lessee on the​ _____ of the goods.

consignment

In​ a(n) _____, a seller delivers goods to a buyer to sell on his or her behalf

FOB point of shipment

The shipping term​ _____ requires the seller to arrange to ship the goods and put the goods in the​ carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit.

FOB place of destination

The shipping term​ _____ requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.

ex ship (from carrying vessel)

The shipping term​ _____ requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

CISG

The​ _____ is a model act for international sales contracts that provides legal rules that govern the​ formation, performance, and enforcement of international sales contracts entered into between international businesses

future

Unborn stock animals are examples of​ _____ goods

title

_______ passes tot he buyer when the seller's performance regarding physical delivery is complete.

buyers breach

by failing to pay for the goods, by wrongful repudiation of the contract, or by refusing to take delivery; risk of loss never passes to the seller

identification

can take place any time agreed to between the parties

shipment contract

contracts are presumed to be _________ ________ if they are to be moved; requires that the seller ship the goods to the buyer by common carrier. seller must make proper shipping arrangements and deliver the goods to the carrier

fungible goods

goods that are indistinguishable when they are mixed; all parts of a larger mass (milk, seeds, grains); identified when the seller ships, marks, or otherwise selects these as the goods called for in the contract

future goods

goods that are not in existence (unborn livestock, crops in the ground) or not in the possession of the seller; identified when the seller ships, marks, or otherwise selects these as the goods called for in the contract

existing goods

goods that physically exist at the time the contract is entered; identified when they are selected by the parties as the goods called for in the contract

contract

if there is no document of title to be used then title passes from seller to buyer at time of place the _________ is entered (not moving goods)

merchant

if we have a _______ seller the risk of loss passes from seller to buyer when the buyer takes actual possession

non merchant

if we have a _________ seller risk of loss passes when the goods are tendered to the buyer when the buyer takes actual possession ex. purchase of fridge; risk of loss from lowes to you does not pass until it arrives at your house

insurable

in looking at loss, we look at ________ interest

risk of loss

in shipment contract _________ ___ _______ passes when title is passed and title is passed when goods are successfully delivered to the carrier

tender of delivery

less than actual delivery; don't have to take goods to buyer; 1. buyer has not been notified that 2. goods have arrived at the destination and are 3. being held for the buyer to take delivery

goods

nothing can happen until the _______ have been identified

title

nothing more than ownership

destination contract

seller but deliver goods to the buyers place of business or other destination as agreed

sellers breach

seller delivers nonconforming goods; if goods are not conforming then buyer has the right to reject the goods and risk of loss remains with the seller until... 1. the nonconformity is cured 2. the buyer accepts the nonconforming goods

tendered

sellers obligation is not complete until goods are _______ to the buyer at destination

seller

the _______ has insurable interest because he has the goods and the title to the goods by virtue of the fact of his ownership. he acts as the supplier of goods, therefore he has the risk of loss prior to the sale which continues until the goods are paid for.

buyer

the ________ insurable interest arises when the goods are identified. for that reason the seller and buyer can have an insurable interest at the same time

document

title passes when the buyer receives the _______

goods not being moved

title passes when the seller delivers a document of title (piece of paper that represents the goods; complication; title may be negotiable)

bill of landing

transport of goods (negotiable)

warehouse receipts

used for storage of goods (document of title)

bailee

​A(n) _____ is a holder of goods who is not a seller or a buyer.

title

​A(n) ​ _____ is​ legal, tangible evidence of ownership of goods

future

​_____ goods are not yet in existence

common

​_____ law placed the risk of loss to goods on the party who held title to the goods

identification

​_____ of goods is distinguishing the goods named in a contract from the​ seller's or​ lessor's other goods