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