UCC Obligations

Question 1

What are seller’s obligations?

Answer 1

Seller’s obligations are to transfer and deliver goods

Question 2

What are buyer’s obligations?

Answer 2

Buyer’s obligations are to accept and pay for goods

Question 3

When are rules regarding carrier cases applicable?

Answer 3

Carrier case rules apply when parties agree to use a common carrier

Question 4

What is a shipment contract

Answer 4

Contract where seller promises to turn the goods over to a carrier

Question 5

How is risk allocated under shipment contracts

Answer 5

Risk of loss is on the buyer as soon as goods are delivered to the seller

FOB is seller

Buyer bears risk of loss if goods are damaged in transit

Question 6

What is a destination contract?

Answer 6

Seller promises to tender delivery at a particular destination

Question 7

What is risk allocation under destination contracts?

Answer 7

Risk of loss is on buyer once goods are tendered at the destination point specified in the contract

FOB is buyer

Seller bears risk of loss if goods are damaged in transit

Question 8

What is default rule if contract is silent as to whether a shipment or destination contract

Answer 8

Default rule is a shipment contract with the risk of loss on buyer

Question 9

When do non-carrier case rules apply?

Answer 9

Non-carrier cases are those in which there’s no agreement to use a common carrier

Question 10

How is risk allocated in non-carrier cases where seller is a merchant

Answer 10

Risk of loss is on the buyer when goods are physically in buyer’s possession

Question 11

How is risk allocated in a non-carrier case where seller is a non-merchant?

Answer 11

Risk of loss is on buyer upon goods being made available