TJ_Comp 20_TB_Ch24

TJ_Comp 20_TB_Ch24 - Chapter 24TITLE AND RISK OF LOSS...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 24—TITLE AND RISK OF LOSS TRUE/FALSE 1. A seller's insurable interest in goods always terminates with the passage of the title to the buyer. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 2. Goods are called identified goods when they have been selected as the goods called for by a sales con- tract. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. When a person picks out a specific necktie and purchases it, the transaction involves identified goods. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. When goods are existing and identified to the contract and there is no document of title, the title to the goods passes to the buyer at the time of the transaction. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. Future goods are involved when a store is temporarily out of an advertised item but tells you that the item can be ordered from the factory. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. Title to goods can be transferred without the actual delivery of the goods involved. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 7. Title and risk of loss always pass to the buyer at the same time. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 8. When negotiable documents of title to goods are sold, the risk of loss and the title to the goods pass to the buyer when the documents are delivered to the buyer. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 9. When a seller packages future goods and marks them for shipment to the buyer, the title to the goods passes to the buyer as soon as the buyer's name is put on the package. ANS: F TOP: AICPA BB-Legal MSC: AACVSB Analytic 10. The fact that a seller has a security interest in the goods, by virtue of a C.O.D. provision or any other device, has no effect on the question of whether the title or the risk of loss has passed to the buyer. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 11. Where the contract is for future goods covered by a shipment contract, the title and the risk of loss gen- erally pass to the buyer when the goods are successfully given over to the carrier.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 12. The law relating to risk of loss in the transfer of existing identified goods does not vary depending on whether a merchant or nonmerchant seller is involved. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 13. Where the contract is for identified goods and the goods are destroyed before the risk of loss has passed to the buyer, the seller must replace the goods because the contract remains in effect. ANS: F
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

TJ_Comp 20_TB_Ch24 - Chapter 24TITLE AND RISK OF LOSS...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online