Ch 22 - Title Risk Of Loss, And Insurable Interest

Question 1

Entrustment

Answer 1

Protects commerce by protecting buyers for merchants

Question 2

Delivery contract

Answer 2

Title transfer to the buyer on the goods’ being identified to the contract (when the contract is executed)
Risk of loss transfers to the buyer when the buyer takes possession
Insurable interest is created when title passes

Question 3

Common carrier origin/shipment contracts

Answer 3

Title passes to buyer when seller turns goods over to common carrier (FOB shipping location)

Question 4

Title

Answer 4

Ownership (good, void, voidable)

Question 5

Common carrier destination contract

Answer 5

Title turns over to buyer when goods reach buyer’s place of work (FOB buyer location)

Question 6

Goods in bailment

Answer 6

W/ negotiable doc of title: RoL & InsInt pass on endorsement
No neg doc = title & InsInt pass goods when identified in contract and contract signed (RoL passes when Bailee is notified or reasonable times passed)

Question 7

Conditional sale on approval

Answer 7

Title & RoL with seller until buyer approves

Question 8

Conditional sale on return

Answer 8

Title and RoL with buyer (inventory)