Bus Law II Midterm Exam Ch 19
in a sale of goods by nonowners, a VOID TITLE occurs when
a thief acquires no title to goods he or she steals. the rightful owner can reclaim
Identification of Goods
Distinguishing goods named in a contract from the seller's or lessor's other goods
bailee
Holder of goods who is not a seller or a buyer ex; a warehouse pickup
a buyer breaches a sale contract if he or she
- Refuses to take delivery of conforming goods - Repudiates the contract - Breaches the contract
in a sale on approval an acceptance of the goods occur if the buyer
- expressly indicates acceptance - doesn't notify the seller of rejection - uses the goods inconsistently with the purpose of the trial
document of title
Actual piece of paper that is required in some transactions of pickup and delivery
Does the UCC follow Common Law's notion of risk of loss?
Hell no Uniform Commercial Code (UCC) rejects this notion and adopts concise rules for risk of loss that are not tied to title
who bears the risk of loss when the goods are in the possession of a a bailee?
If goods are to be delivered to the buyer without the seller moving them, the risk of loss passes to the buyer when: - Buyer receives negotiable document of title - Bailee acknowledges buyer's right to possession - Buyer receives a nonnegotiable document of title and has reasonable time to demand goods
title
Legal, tangible evidence of ownership of goods
entrustment rule
Merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business a real owner cannot reclaim the goods from the buyer
noncarrier cases involve
NO movement of goods
sale on approval
No actual sale occurs until the buyer accepts the goods
good faith purchaser for value
Person to whom good title can be transferred from a person with voidable title
destination 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
sale or return
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
conditional sales
Seller entrusts possession of goods to a buyer on a trial basis
the delivery of goods without moving them essentially means that the _________ is required to pick up the goods from the seller
the buyer
consignment
arrangement in which a seller delivers goods to a buyer to sell on his or her behalf
who bears the risk of loss in a shipment contract
buyer
future goods
goods not yet existing
passage of title of goods in a sale
if the parties do not agree to a specific time, title passes to the buyer when the physical delivery is completed
shipment contract
requires the seller to ship the goods to the buyer via a common carrier
who bears the risk of loss in a sale on approval?
risk of loss and title passes when the goods are accepted by the buyer.
for a NONMERCHANT seller what is the rule for risk of loss in a non carrier case
risk of loss passes to buyer upon tender of delivery of the goods
consignment is treated as a ________ under the UCC
sale or return
when a seller breaches the sale contract the risk of loss remains with the _______ until: ______
seller ; until 1) defect/nonconformity is cured 2) buyer accepts the nonconforming good
for a MERCHANT seller what is the rule for risk of loss in a non carrier case
seller Bears the risk of loss the time of contracting and the time the buyer picks up the goods
what are the two types of carrier case contracts?
shipment contracts destination contracts
when a seller breaches their sale contract that means the seller
tenders or delivers nonconforming goods to the buyer
carrier cases involve
the movement of goods
COMMON LAW places the risk of loss to goods on
the party who held title to the goods
who bears the risk of loss in a destination contract
the seller
If the document of title or bill of lading is required, the title passes when
the seller delivers the document
in a sale or return who bears the risk of loss
the seller, when the buyer has possession of the goods the risk of loss and title passes to the buyer
in a sale of goods by nonowners, a VOIDABLE TITLE occurs when
title that a purchase has on goods obtained by: - fraud - check that is later dishonored - impersonation of another person
Already existing goods are identified
when a contract is made and names the specific goods sold or leased