risk of loss Flashcards
What does UCC 2-509 primarily address?
Risk of loss in the event of a breach of contract.
True or False: Under UCC 2-510, a seller can repudiate the contract before the risk of loss passes to the buyer.
True
Fill in the blank: Under UCC 2-509, the risk of loss typically passes to the buyer when __________.
the seller has completed their delivery obligations.
What is the significance of ‘repudiation’ in UCC 2-510?
It allows a party to cancel a contract due to the other party’s failure to perform.
Under UCC 2-509, when does the risk of loss pass to the buyer in a shipment contract?
When the goods are delivered to the carrier.
Multiple choice: Which of the following is NOT a factor in determining risk of loss under UCC 2-509?
The location of the buyer.
What happens to the risk of loss if the goods are destroyed after the buyer has taken possession?
The buyer bears the risk of loss.
True or False: UCC 2-510 allows for a party to anticipate a breach and take measures to mitigate damages.
True
What is one condition under which the seller retains the risk of loss after delivery?
If the goods are non-conforming.
Short answer: What is an essential requirement for a buyer to accept goods under UCC 2-509?
The buyer must have a reasonable opportunity to inspect the goods.
Multiple choice: Which party typically bears the risk of loss in a destination contract?
The seller until the goods reach the destination.
Fill in the blank: UCC 2-509 establishes rules for __________ in sales transactions.
risk of loss
True or False: A buyer can still accept goods even if they have been delivered late.
True
What does UCC 2-510 allow a party to do in the event of a repudiation?
Seek damages for the loss incurred.
Under UCC 2-509, what must a seller do to pass risk of loss to the buyer?
Deliver conforming goods.
What is the role of ‘delivery’ in determining risk of loss under UCC 2-509?
Delivery is the critical moment when risk of loss transfers.
True or False: A seller can still be liable for damages even after risk of loss has passed to the buyer.
True
Short answer: Name one scenario where risk of loss remains with the seller even after delivery.
If the goods are damaged during transit due to seller’s negligence.
Multiple choice: What does ‘anticipatory repudiation’ mean under UCC 2-510?
A declaration by one party that they will not perform their contractual obligations.
