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