Business law ch19

Who is risk of loss on sale on approval (risk of loss in conditional sales)?

Risk of loss of goods and title to the goods remain with the seller and does not pass to the buyer until acceptance.

In shipment contract the seller is required to? (2)

1. Make proper shipping arrangements 2. Deliver the goods into the carrier's hands .

How can a buyer breach a sales contract? (3)

1. Refuses to take delivery of conforming goods. 2. Repudiates the contract 3. Otherwise breaches the contract

what are the 3 transaction sales in conditional sales?

1. Sales on approval 2. Sale or return 3. Consignment

When a seller breaches a contract the risk of loss remains on the seller until (2)

1. The defect or non-conforming goods are cured 2. The buyer accepts the nonconforming goods.

If no document of title is needed, the goods are identifies at

1. the time of contracting

what is a sale on approval?

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

what is an insurable interest?

An insurable interest in goods as long as he/she retain title or has a security interest in the goods.

What article determines the passage of title in sales contracts

Article 2

On a sale or return contract the risk of loss of title and goods are in the seller or buyer ?

Seller until the buyer takes possession of the goods

Who bears the risk of loss if the goods are destroyed or stolen after the contract date but before the buyer picks up the goods from the seller?

Depends if its a merchant or non-merchant

When can a seller breach a contract?

If he or she delivers non-conforming goods to the buyer.

Who bears the risk of loss if the goods are destroyed or stolen after the contract date but before the buyer picks up the goods from the seller if the seller is a non- merchant?

Non-merchant passes the risk of loss upon "tender of delivery" of the goods. Tender delivery occurs when 1. holds the goods available for the buyer to take the delivery 2. Notifies the buyer of this fact

Under sale on approval, how can a buyer accept a sale on approval?

Occurs if the buyer 1. Expressely indicated acceptance. 2. Fails to notify the seller of rejection of the goods within the agreed upon trial period. 3. Uses the goods inconsistently with the purpose of the trial.

If the parties do not agree on a specific time, title passes to the buyer when and where the seller's?

performance with reference to the physical delivery is completed.

Article 2 and article 2A rejects a notion and adopts concise rules for?

risk of loss that are not tied to a title.

On a sale or return contract, the sale is considered final if?

the buyer fails to return the goods within the specified time or within a reasonable time.

The consignee is a paid a fee if

the consignee sells the goods on behalf of the consignor.

what are the identification of goods?

the goods named in the contract from the sellor's or lessor goods.

The party who receives the lease good

the lessee

The party who leases the goods is called

the lessor

who is in a risk of loss in an ordinary lease?

the lessor is a merchant, the risk of loss passes to the lessee on the receipt of the goods.

who is in a risk of loss in a finance lease?

the supplier is a merchant, the risk of loss passes to the lessee on the receipt of goods.

The rights and obligations of the buyerm the seller, and third parties are determined based on

title to the goods

Under document of title, when does the title transfer?

when and where the seller delivers the document to the buyer. ex: if the goods named in a sales contract are located in a warehouse, title passes when and where the seller delivers to the buyer a warehouse receipt representing the goods.

In a lease transaction, title to the leased goods remain

with the lessor and does not pass to the lesse

who risks in in "risk of loss in a shipment contract"?

The buyer bears the risk of loss during transportation. Passes to the buyer when the seller delivers the goods to a conforming carrier.

Who bears the risk of loss if the goods are destroyed or stolen after the contract date but before the buyer picks up the goods from the seller if the seller is a merchant?

The risk of loss passes to the buyer UNTIL the goods are received. Merchant seller bears the risk of loss between the time of contracting and the time the buyer picks up the goods.

who risks in in "risk of loss in a destination contract"?

The sellers bears the risk of loss during transportation. Exempt in cases of no-arrival, no-sale contracts.

A consignment is treated as a sale or return under UCC meaning?

The title and risk of loss of the goods pass to the consignee when the consignee takes possession of the goods.

When does the title transfer in a shipment contract?

Title passes to buyer at the time and place of shipment.

When does the title transfer in a destination contract?

Title passes to the buyer when the seller tenders delivery to the goods at the specified locatiohn.

what is a sale or return contract?

a contract in which 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.

What is a 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.

what is a shipment contract?

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

what is document of title? <when the seller picks up its goods.

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

what is a consignment?

an arrangement in which a seller (the consignor) delivers goods to a buyer (the consignee) to sell on his or her behalf.

The title to goods passes from the seller to the buyer in what manner and conditions?

any manner and any conditions explicitly agreed upon the parties.

If no document of title is needed, the title of the goods are transferred at the time and place of

contracting.

what are identification of goods?

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

what are future goods?

goods not yet in existence (unborn stock of animals/ ungrown crops).

The seller/lessor retains the risk of loss of the goods until

he/she identifies them to a sales contract

Until when can the title to the goods be transferred from the seller to the buyer?

once the goods in the contract exist and have been identified

When risk of loss is being dealt the UCC handles the notion by allowing

parties to a sales contract to agree among them who will bear the risk of loss if the goods subject to the contract are lost or destroyed.

UCC 2-401 and 2-501 prevent title goods from

passing from the seller to the buyer unless the goods are identified to the sales contract.