Type of Transactions - MPC

Question 1

Sale on Approval

Answer 1

Buyer may return goods even if they conform. Seller holds title and risk of loss until approved by buyer. Seller incurs cost of returned goods.

Question 2

Sale or Return

Answer 2

Buyer can return goods he is unable to resell. Title passes to buyer and risk of loss is buyers until sold or returned.

Question 3

Auctions with Reserve

Answer 3

Auctioneer may withdraw goods and reject all bids until completion of sale is announced. Presumed reserve unless otherwise stated. Seller can bid on goods.

Question 4

Auctions without Reserve

Answer 4

Goods cannot be withdrawn when bid is made. Bids made at falling of hammer at at auctioneer’s discretion. Seller cannot bid unless forced sale.

Question 5

Good Faith Purchase

Answer 5

A person with voidable title has the power to transfer the goods for value even if by fraud or trick. The bonafide purchaser will be protected by the UCC.