UCC Documents of Title and Title Transfer

Question 1

Under the U.C.C., a warehouseman, as the bailee under common law

Answer 1

must exercise due care, that is, ordinary care in the storage of the bailor’s goods

Question 2

Under U.C.C. 7-309, there are very few exceptions to the common carrier’s liability to the goods once it has accepted the goods. what are those exceptions?

Answer 2

Acts of God; acts of a public enemy; an order of a public authority; an act of the shipper; and the inherent nature of the goods.

However, that same article authorizes the shipper to limit their liability by contractually stating a dollar limit on such risks. Note that the common carrier may be required to offer, at an additional cost to the shipper, higher insurance coverage.

Question 3

Under the U.C.C., a warehouse receipt:

Answer 3

is negotiable if, by its terms, the goods are to be delivered to bearer or to the order of a named person

Question 4

a seller’s obligation under a F.O.B. destination contract

Answer 4

is to tender delivery of conforming goods at a specified destination

Question 5

Process of renting

Answer 5

1) Landlord delivers possession to lessee
2) tennant then has right to possession until expiration/or breach of lease
3) Landlord promises to not disturb the lessee’s right to use property (possession) during the lease term (quiet enjoyment).

Question 6

In order to be negotiable, a bill of lading must

Answer 6

provide that the goods are to be delivered to bearer or to the order of a named person.

A bill of lading to a consignee does not meet this requirement.

Question 7

A deed is the document

Answer 7

which indicates the transfer of title from the previous owner (the transferor) to the new owner (the transferee)

must include a description of the land being conveyed.

Question 8

Under the Uniform Commercial Code (U.C.C.), a warehouseman, as the bailee under common law

Answer 8

must exercise due care—that is, ordinary care in the storage of the bailor’s goods

Question 9

A negotiable document of title is “duly negotiated” when it

Answer 9

is negotiated in the manner stated in this section to a holder who purchases it in good faith without notice of any defense against or claim to it on the part of any person and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a money obligation