Business Law Ch. 19

identification of goods

distinguishing the goods named in a contract from the seller's or lessor's other goods

sale or return contract

a contract in which the seller delivers goods to a buyer with the understanding that the buyer may return them if they are not used or resold within a stated or reasonable period of time

destination contract

a contract that requires the seller to deliver the goods either to the buyer's place of business or to another destination specified in the sales contract

shipment contract

a contract that requires the seller to ship the goods to the buyer via a common carrier

bailee

a holder of goods who is not a seller or buyer. ex. warehouse

good faith subsequent lessee

a person to whom a lease interest can be transferred from a person with voidable title. the real owner cannot reclaim the goods from the subsequent lessee until the lease expires.

good faith purchaser for value

a person to whom good title can be transferred from a person with voidable title. the real owner cannot reclaim goods from a good faith purchaser for value

buyer in the ordinary course of business

a person who in good faith and without knowledge that the sale violates the ownership or security interests of a third party buys goods in the ordinary course of business from a person in the business of selling goods of that kind. a buyer in the ordinary course of business takes the goods free of any third-party security in the goods.

void title

a situation in which a thief acquires no title to goods he or she steals. also known as a void leasehold interest

voidable title

a title that a purchaser has if the goods were obtained by (1) fraud, (2) a check that is later dishonored, or (3) impersonation of another person. also known as voidable leasehold interest

sale on approval

a type of sale in which there is no actual sale unless and until the buyer accepts the goods

document of title

an actual piece of paper, such as a warehouse receipt or bill of lading, that is required in some transactions of pickup and delivery

consignment

an arrangement in which a seller (the consignor) delivers goods to a buyer (the consignee) to sell

future goods

goods net yet in existence (ex. ungrown crops, unborn stock animals)

title

legal, tangible evidence of ownership of goods

shipment contract-risk

the buyer bears the risk of loss during transportation

destination contract-risk

the seller bears the risk of loss during transportation