Law for Business and Personal Use © Thomson South-Western CHAPTER 13 Ownership and Risk of Loss in...
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Law for Business and Personal Us Law for Business and Personal Us © Thomson South-Western CHAPTER 13 Ownership and Risk of Loss in Sales 13-1 Transfer of Ownership 13-2 Risk of Loss and Insurable Interest in Sales
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Transcript of Law for Business and Personal Use © Thomson South-Western CHAPTER 13 Ownership and Risk of Loss in...
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
CHAPTER 13Ownership and Risk of Loss in Sales
13-1 Transfer of Ownership
13-2 Risk of Loss and Insurable Interest in Sales
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 2
13-113-1 Transfer of Ownership
GOALS Discuss who may transfer ownership of
goods Explain what is required for transfer of
ownership of goods and when it occurs
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 3
WHO MAY TRANSFER OWNERSHIP?
Authorized persons Buyers in a sale induced by fraud Holders of negotiable documents of title Merchants with possession of sold
goods
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 4
FOCUS
Who has the authority to transfer ownership of goods?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 5
Besides the owner, who may transfer ownership of goods?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 6
REQUIREMENTS FOR OWNERSHIP TRANSFER
When does ownership transfer? Common situations
Seller delivers goods to their destination Seller ships, but does not deliver, goods to
their destination Seller delivers document of title Buyer takes possession at place of sale
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 7
What two characteristics must goods have in order to have ownership of them transferred?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 8
13-213-2 Risk of Loss and Insurable Interest in Sales
GOALS Explain the general rules for identifying
when risk of loss transfers Identify the point at which insurable
interest of goods transfers Identify when risk of loss and insurable
interest transfer in specific situations
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 9
FOCUS
Identifying the transfer of risk of loss Seller ships goods by carrier Goods held by bailee Either party breaches after goods
identified Goods neither shipped by carrier nor held
by bailee
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 10
WHEN DOES RISK OF LOSS TRANSFER?
If seller ships goods by carrier If the goods are held by a bailee If either party breaches after the goods
are identified In other cases
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 11
Explain when the risk of loss transfers from seller to buyer when the seller ships the goods by carrier.
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 12
WHEN DOES INSURABLE INTEREST TRANSFER?
Buyer has right to: Insurable interest Inspect goods at reasonable hour Compel delivery if seller wrongfully
withholds delivery Collect damages form third persons
who take or injure the goods
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 13
When does a buyer obtain an insurable interest in the goods?
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 14
TRANSFER OF RIGHTS AND RISKS IN SPECIFIC SALES
Cash-and-carry sales Sales on credit COD sales Sale or return Sale on approval Sale of an undivided interest Auction Bulk transfer
Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western
Chapter 13Slide 15
What is the most common type of transaction for low-priced items such as groceries, and when does risk of loss pass from a merchant to a buyer for these sales?
