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Q: Qustion:Under the Sales Article of the UCC ( No Answer,   4 Comments )
Question  
Subject: Qustion:Under the Sales Article of the UCC
Category: Business and Money > Accounting
Asked by: koldhand1-ga
List Price: $5.00
Posted: 11 May 2006 22:29 PDT
Expires: 15 May 2006 00:10 PDT
Question ID: 727980
I got a following question, but do not have answer sheet.
I would like to know the answer and how to solve this 
question. Thanks

Under the Sales Article of the UCC, which of the
following statements is correct regarding risk of loss
and title to the goods under a sale or return contract?

a. Title and risk of loss are shared equally between
  the buyer and the seller.
b. Title remains with the seller until the buyer
  approves or accepts the goods, but risk of loss passes
  to the buyer immediately following delivery of the goods
  to the buyer.
c. Title and risk of loss remain with the seller until the
  buyer pays for the goods.
d. Title and risk of loss rest with the buyer until the
  goods are returned to the seller.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Qustion:Under the Sales Article of the UCC
From: redfoxjumps-ga on 12 May 2006 00:50 PDT
 
"b" makes practical sense, else why should the buyer takr any care at all?

But the law is not always practical?

What do you think?
Subject: Re: Qustion:Under the Sales Article of the UCC
From: myoarin-ga on 12 May 2006 08:09 PDT
 
You could have accessed the UCC and found the relevant article much
faster than waiting for an answer here.  At the same time, you would
have learned some basics about commercial transactions.

The laws on such are pretty logical and practical, having grown from a
large body of case law.
Subject: Re: Qustion:Under the Sales Article of the UCC
From: ubiquity-ga on 12 May 2006 08:10 PDT
 
I would say B is correct except when a common carrier is involved.

"Unless otherwise explicitly agreed title passes to the buyer at the
time and place at which the seller completes his performance with
reference to the physical delivery of the goods"  See UCC Art.
2-401(2) (http://www.law.cornell.edu/ucc/2/2-401.html)
Subject: Re: Qustion:Under the Sales Article of the UCC
From: ubiquity-ga on 12 May 2006 08:11 PDT
 
or unless the contract states otherwise.  After all Article 2 acts as
default Contract rules when there isa no other language, but the
contract always controls.

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