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