Question 1

In the text's case of National Compressor Corp.v.Carrow and McGee,the court considered whether a buyer,who purchased a compressor that was subsequently destroyed in a fire on a third party's premises before the buyer took possession,had an insurable interest since title had not yet passed and thus could bring suit against the third party.What was the court's ruling?

Accepted Answer

A)  The Buyer could not sue the third party because title had not passed and thus,it did not have an insurable interest.
B)  The Buyer had an insurable and special interest but could not sue the third party because the goods had not been identified to the contract.
C)  The Buyer could not sue the third party because it did not have an insurable and special interest.
D)  The Buyer had an insurable and special interest and could sue the third party because regardless of whether or not goods had been identified to the contract.
E)  The Buyer had an insurable and special interest and could sue the third party because the goods had been identified to the contract.F) B) and C)
G) A) and C)

Question 2

Cora,an artist,entrusts her paintings with Kasper,the owner of an art gallery.Kasper sells Cora's paintings to Gianni.What kind of title does Gianni have?

Accepted Answer

A)  Voidable title,but only because the sale is contingent upon Cora's approval.
B)  Good title,but only if Cora approves of the sale.
C)  Voidable title,because Kasper had no title at all.
D)  Good title,but only because Cora and Kasper had good title.
E)  Good title,even though Kasper had no title at all.F) B) and E)
G) C) and D)

Question 3

List and describe good title and void title,and give an example of when void title would be passed.

Accepted Answer

Good title is title that is ac...

Question 4

Which of the following is true regarding transportation costs when the designation FOB is used?

Accepted Answer

A)  The buyer and seller with the loss being proportioned 75% to the buyer and 25% to the seller.
B)  The buyer and seller with the loss being proportioned 25% to the buyer and 75% to the seller.
C)  The selling price does not include transportation costs.
D)  The selling price includes transportation costs.
E)  The buyer and seller bear transportation costs with the costs apportioned at a rate of 50% to the buyer and 50% to the seller.F) B) and E)
G) A) and E)

Question 5

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Accepted Answer

A)  The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
B)  The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.
C)  The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
D)  The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
E)  The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.F) A) and C)
G) A) and D)

Question 6

[Wrecked Toaster] Ivan goes to upscale housewares store Smith-Napa to buy himself a nice new toaster,because his old one broke.The store does not have the model he wants in stock,but they can have it shipped from the warehouse directly to Ivan.It is agreed that the toaster will be placed with a common carrier for delivery.The contract between Ivan and Smith-Napa is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ivan's home.Unfortunately,on the way to Ivan's home,through no fault of the delivery driver,the delivery truck was involved in a collision,and the toaster was damaged beyond repair.
-Ivan and Smith-Napa entered into which of the following contracts?

Accepted Answer

A)  A conditional delivery contract
B)  A common-carrier delivery contract
C)  A trucking contract
D)  A goods-in-bailment contract
E)  A conditional sales contractF) B) and E)
G) A) and B)

Question 7

The text discusses the case of Landshire Food Service,Inc. ,v.Coghill,where the defendant,Coghill,sold his Rolls Royce to Bellman who paid with a forged cashier's check.Meanwhile,Hyken,an innocent purchaser for value,purchased the car from Bellman before the fraud was discovered.What was the result of this case?

Accepted Answer

A)  The car was ordered sold with Coghill and Hyken to split the proceeds.
B)  Hyken was entitled to the vehicle because although a person who procures title through fraud receives a void title,the person guilty of fraud may transfer good title to a bona fide purchaser.
C)  Hyken was entitled to the vehicle because a person who procures title through fraud receives voidable title and is able to transfer good title to a bona fide purchaser.
D)  Coghill was entitled to return of the vehicle because the contract with Bellman was voidable by Coghill.
E)  Coghill was entitled to return of the vehicle because the contract with Bellman was void.F) B) and D)
G) A) and B)

Question 8

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

Accepted Answer

A)  Loss is proportioned 25% to the buyer and 75% to the seller
B)  Loss is proportioned 75% to the buyer and 25% to the seller
C)  Loss is proportioned 50% to the buyer and 50% to the seller
D)  The seller
E)  The buyerF) A) and E)
G) C) and D)

Question 9

The terms FOB and FAS mean the same thing.

Accepted Answer

A) True 
 B)False

Question 10

The right to insure the goods against any risk exposure such as damage or destruction is known as an insurable interest.

Accepted Answer

A) True 
 B)False

Exam 22: Title,risk of Loss,and Insurable Interest

List and describe good title and void title,and give an example of when void title would be passed.

Correct Answer
verified
Good title is title that is ac...
View Answer

Which of the following is true regarding transportation costs when the designation FOB is used?

Correct Answer
verified

The terms FOB and FAS mean the same thing.

Correct Answer
verified

Correct Answer
verified

The right to insure the goods against any risk exposure such as damage or destruction is known as an insurable interest.

Correct Answer
verified

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Correct Answer
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Correct Answer
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Correct Answer
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Cora,an artist,entrusts her paintings with Kasper,the owner of an art gallery.Kasper sells Cora's paintings to Gianni.What kind of title does Gianni have?

Correct Answer
verified

Correct Answer
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Exam 22: Title,risk of Loss,and Insurable Interest

List and describe good title and void title,and give an example of when void title would be passed.

Correct AnswerverifiedGood title is title that is ac...View AnswerShow Answer

Which of the following is true regarding transportation costs when the designation FOB is used?

Correct AnswerverifiedShow Answer

The terms FOB and FAS mean the same thing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The right to insure the goods against any risk exposure such as damage or destruction is known as an insurable interest.

Correct AnswerverifiedShow Answer

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cora,an artist,entrusts her paintings with Kasper,the owner of an art gallery.Kasper sells Cora's paintings to Gianni.What kind of title does Gianni have?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Good title is title that is ac...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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