Chap. 19

Question 0

What are future goods?

Answer 0

Goods not yet in existence (E.g., ungrown crops, unborn stock animals).

Question 1

What are identification of goods?

Answer 1

Distinguishing of the goods named in a contract from the seller’s or lessor’s other goods.

Question 2

What is a title?

Answer 2

Legal, tangible evidence of ownership of goods.

Question 3

What is a shipment contract?

Answer 3

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

Question 4

What is a destination contract?

Answer 4

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.

Question 5

What is a document title?

Answer 5

An actual piece of paper, such as a warehouse receipt or bill of lading, that is required in some transactions of pickup and delivery.

Question 6

What is a risk of loss in a shipment contract?

Answer 6

The buyer bears the risk of loss during transportation.

Question 7

What is the risk of loss in a destination contract?

Answer 7

The seller bears the risk of loss during transportation.

Question 8

What is a bailee?

Answer 8

A holder of goods who is not a seller or a buyer (E.g., a warehouse).

Question 9

What is the United Nations Convention on Contracts fro the International Sale of Goods?

Answer 9

A model act for international sales contracts that provides legal rules that govern the formation, performance, and enforcement of international sales contracts entered into between international businesses.

Question 10

What are conditional sales?

Answer 10

Type of sales where the seller entrusts possession of goods to a buyer on a trial basis.

Question 11

What is sale on approval?

Answer 11

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

Question 12

What is a sale or return contract?

Answer 12

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 time period.

Question 13

What is consignment?

Answer 13

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

Question 14

What is a void title?

Answer 14

A situtation in which a thief ac

Question 15

What is a void title?

Answer 15

A situation in which a thief acquires no title to goods he or she steals

Question 16

What is a voidable title?

Answer 16

A title that a purchaser has on goods obtained by fraud a check that is later dishonored, or impersonation of another person.

Question 17

What is good faith purchaser for value?

Answer 17

A person to whom good title can be transferred from a person with voidable title. The real owner cannot reclaim goods from a good faith purchaser for value.

Question 18

What is good faith subsequent lease?

Answer 18

A person to whom a lease interest can be transferred from a person with voidable title. The real owner cannot reclaim the goods from the subsequent lessee until the lease expires.

Question 19

What is a buyer in the ordinary course of business?

Answer 19

A person who, in good faith and without knowledge that the sale violates the ownership or security interests of a third party, buys goods in the ordinary course of business from a person in the business of selling goods of that kind. A buyer in the ordinary course of business takes the goods free of any third party security interest in the goods.