Title & Risk of Loss

Question 1

T/F: If there is no document of title, for non-delivery (non-shipment) of goods, identification and passage of title occurs at the same time.

Answer 1

True

Question 2

T/F: If there is a document of title and if contract terms are both negotiable and non-negotiable, then title passes to buyer upon tender.

Answer 2

False. Title passes to buyer upon receipt of the document.

Question 3

Tender means what?

Answer 3

The goods have arrived, they are available for the buyer to pick up, and the buyer has been notified that the goods are there and available for pick-up.

Question 4

T/F: FOB shipment (carrier) means that the IRS can seize the property.

Answer 4

False. When the seller sent the goods to the carrier, the title passed to the buyer.

Question 5

T/F: In FOB/delivery contracts, risk of loss and title pass at the same time.

Answer 5

True

Question 6

T/F: Risk of loss passes to the buyer when the bailee acknowledges the buyer’s right to the possession of goods.

Answer 6

True