FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

What does the term "FOB" when used as a shipping term represent?

A) Fee on Board
B) Fee on Basis
C) Freedom of Board
D) Free on Board
E) Free of Basis

F) None of the above
G) C) and D)

Correct Answer

verified

D

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

"Accidental Sale." Robby entrusted his automobile to ABC Motors for repair. The manager of ABC Motors, who did a very poor job with inventory, accidentally sold the car to Connie. Connie, who paid cash for the car, had no idea that the car did not belong to ABC Motors and paid fair market value for it. When Robby went to pick up the car, he was very upset that it was gone. The manager of ABC Motors told him that he was very sorry, but that his only recourse would be against Connie. -Which of the following is true regarding the manager's statement that Robby's only recourse is against Connie?

A) The manager is correct.
B) The manager is incorrect only if Robby has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
C) The manager is correct only if Connie can be found.
D) The manager is correct only if Connie's deal was for less than 10% of the fair market value of the car.
E) The manager is incorrect, and Robby can sue ABC Motors.

F) A) and B)
G) D) and E)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

What do the words "deliver to the order of seller" indicate in a goods-in-bailment contract?

Which of the following is true regarding the status of a common carrier in relation to the seller?

What does the term CIF when used as a shipping term represent?

In a conditional sales contract, a contract is a ______ when the seller and buyer agree that the buyer may return the goods at a later time.

In a conditional sales contract, a contract is a ______ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Set forth the five situations under which a buyer gets only voidable title in a sale.

"Used Car Problems." Marcy purchased a used car from ABC Motors. Six months later the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy asked for her money back from ABC Motors. The manager there told her that the car was not stolen, but that even if it were, ABC Motors acted in good faith with no knowledge of a theft; and that, therefore, Marcy, as a good-faith purchaser, had a good title. ABC Motors had also sold a used car to Frank who wrote a bad check for the car and left town, but not before selling the car to Betty. Betty purchased the car with no knowledge of any problem with the check. ABC Motors asked Betty to return the car, but she refused. She explained that she had given the car to her son, Billy. -What kind of title did Billy have?

"Wrecked Furniture." Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times 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 Ralph's home. Unfortunately, on the way to Ralph's home, through no fault of the delivery driver, the delivery truck was involved in a collision, and the furniture was significantly damaged. -Which of the following is true regarding the risk of loss at the time the goods were damaged?

Which of the following was the result in the case in the book involving Tempur-Pedic, the manufacturer of mattresses, when Tempur-Pedic sought to stop the sale of mattresses that Tempur-Pedic has donated to a charity for victims of Hurricane Katrina and attempted to recover mattresses sold by the charity involved?

"Wrecked Furniture." Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times 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 Ralph's home. Unfortunately, on the way to Ralph's home, through no fault of the delivery driver, the delivery truck was involved in a collision, and the furniture was significantly damaged. -What type of contract is presumed based upon the fact that the contract was 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 Ralph's home?

In a destination contract who bears the risk of loss while the goods are in transit?

Good faith is generally relevant in determining whether someone with a void title can pass a good title.

"Accidental Sale." Robby entrusted his automobile to ABC Motors for repair. The manager of ABC Motors, who did a very poor job with inventory, accidentally sold the car to Connie. Connie, who paid cash for the car, had no idea that the car did not belong to ABC Motors and paid fair market value for it. When Robby went to pick up the car, he was very upset that it was gone. The manager of ABC Motors told him that he was very sorry, but that his only recourse would be against Connie. -Which of the following is a proper identifying term for Connie?

"Accidental Sale." Robby entrusted his automobile to ABC Motors for repair. The manager of ABC Motors, who did a very poor job with inventory, accidentally sold the car to Connie. Connie, who paid cash for the car, had no idea that the car did not belong to ABC Motors and paid fair market value for it. When Robby went to pick up the car, he was very upset that it was gone. The manager of ABC Motors told him that he was very sorry, but that his only recourse would be against Connie. -Which of the following is true regarding Connie's rights to the car?

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

Which of the following is title that is acquired from someone who already owns the goods free and clear?

With goods in bailment, when is an insurable interest created?

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party, such as a warehouseman?