Question

Joe orders 1000 red widgets from Amazon. The contract specifies that it is a "destination contract." Amazon ships blure widgets and the boxes are put in Joe's warehouse. Before Joe can inspect them, they are destroyed in a fire. As between Amazon and Joe, who bears the loss?

	1.	Joe because the widgets had reached the destination
	2.	Joe because the fire was at his warehouse
	3.	Amazon because it shipped nonconforming goods
	4.	The Fire Department because they should have put out the fire and saved the widgets

Joe orders widgets from Amazon. The contract says nothing about risk of loss. Amazon takes the widgets to FedEx for shipment to Joe. While in the posserssion of FedEx, the widgets are destroyed. As between Amazon and Joe, who bears the loss?

	1.	Joe because it is deemed a shipment contract
	2.	Amazon because it is deemed a destination contract
	3.	FedEx because they were in possession
	4.	None of the above

Joe buys and pays for a specific red bicycle from Agee's Bicycle Shop. He intends to pick it up the next week. In the meantime, the bicycle is destroyrd in a fire. As between Joe and Agee, who bears the loss?

	1.	Joe because he completed the sale and had title to the bicycle
	2.	Joe because Agee had "tendered" the bicycle to him
	3.	Agee because Joe had not taken possession
	4.	None of the above

Joe takes his new car to Acme Chevrolet to get its oil changed. While there, Acme's salesman sells it to Sam, who in good faith believes it to be for sale. Which of the following statements is true?

	1.	Joe gets the car back because he never intended that it be sold
	2.	Acme must repossess the car from Sam and return it to Joe
	3.	Sam is a BFP and can keep the car. Joe's recourse is to sue Acme for the value of the car.
	4.	All of the above

Answer 1

Joe orders 1000 red widgets from Amazon. The contract specifies that it is a "destination contract." Amazon ships blure widgets and the boxes are put in Joe's warehouse. Before Joe can inspect them, they are destroyed in a fire. As between Amazon and Joe, who bears the loss?

The answer is Joe because the widgets had reached the destination. As it is a destination contract, it clearly says that if the good reaches the destination, it is no longer liable to the seller and buyer has to bear any loss if it is damaged.

Joe orders widgets from Amazon. The contract says nothing about risk of loss. Amazon takes the widgets to FedEx for shipment to Joe. While in the posserssion of FedEx, the widgets are destroyed. As between Amazon and Joe, who bears the loss?

The answer is FedEx because they were in possession. Since no contracts are signed and the product was damaged from the hands of carrier, it is the carrier's responsibility to deal with the damaged products.

Joe buys and pays for a specific red bicycle from Agee's Bicycle Shop. He intends to pick it up the next week. In the meantime, the bicycle is destroyrd in a fire. As between Joe and Agee, who bears the loss?

The answer is Agee because Joe has not taken possession. Since Joe has not taken bicycle with him, Agee cannot put blame on Joe and Agee has to either give Joe a new bicycle or pay him his money.

Joe takes his new car to Acme Chevrolet to get its oil changed. While there, Acme's salesman sells it to Sam, who in good faith believes it to be for sale. Which of the following statements is true?

All of the above. Joe's intention was to get its oil changed and not to sell it. So he has all rights to get the car back. Either Acme must get the car back and give it to Joe or pay the value of the car. Now, the car was sold unintentionally by the salesman and Sam did not know about the ownership, Sam cannot be blamed here. Hence, Joe can sue Acme for the car and he will get the money of the car.