Name______Date______Class______

Lesson 13-1 Transfer of Ownership

Lesson 13-1 Outline

I.Who May Transfer Ownership?

A.Authorized Persons

B.Buyers in a Sale Induced by Fraud

C.Holders of Negotiable Documents of Title

D.Merchants With Possession of Sold Goods

II. Requirements for Ownership Transfer

A.When Does Ownership Transfer?

B.Common Situations

1.Seller Delivers Goods to Their Destination

2.Seller Ships, but Does not Deliver, Goods to Their Destination

3.Seller Delivers Documents of Title

4.Buyer Takes Possession at Place of Sale

Vocabulary Review

Define the following vocabulary terms.

1.good faith purchaser

2.existing goods

3.identified goods

4. future goods

5. tender of delivery

Concept Review

6.Explain a sale induced by fraud.

7.How does the law require a purchaser to act in good faith?

8.What two characteristics must goods have in order for ownership of them to be transferred?

Goals Review

9.Who may transfer ownership of goods?

10.What is required for the transfer of ownership of goods, and when does transfer occur?

Lesson 13-2 Outline

I.When Does Risk of Loss Transfer?

  1. If Seller Ships Goods By Carrier
  2. If the Goods Are Held by a Bailee
  3. If Either Party Breaches After the Goods are Identified
  4. In Other Cases

II.When Does Insurable Interest Transfer?

III. Transfer of Rights and Risks in Specific Sales

A.Cash-and Carry Sales

B.Sales on Credit

C.COD Sales

D.Sale or Return

E.Sale on Approval

F.Sale of an Undivided Interest

G.Auction

H.Bulk Transfer

Lesson 13-2 Review

Vocabulary Review

Define the following vocabulary terms.

1. FOB

2. CIF

3. credit sale

4. COD

5. sale or return

6. sale on approval

7. sale of an undivided interest

8. auction

9. bulk transfer

Concept Review

10.How do FOB terms affect title and risk of loss?

11.What is the significance of the transfer of insurable property interests?

12.When do ownership and risk of loss pass to the buyer in a cash-and-carry sale, a credit sale, and a COD sale?

13.What is the significance of the transfer of insurable property interests?

Goals Review

14.What are the general rules for identifying when risk of loss transfers?

15.What is the point at which insurable interest of good transfers?

16.When does the risk of loss transfer in specific situations?

1

Chapter 13 Ownership and Risk of Loss in Sales