When Does the Passage of Title Occur Under Article 2

question 29

Multiple Choice

When does the passage of title occur under Article 2 of the UCC?

• A) It occurs at the time and place goods are shipped in a shipment contract, and upon reaching the buyer's place of business or other specified location in a destination contract.
• B) It always occurs when the goods leave the hands of the seller.
• C) It does not occur until the buyer indicates acceptance of the goods.
• D) It always passes at the same time that risk of loss passes.
• E) It occurs at the time payment is made by the buyer.

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Definitions:

Inventory

The quantity of goods and materials on hand, typically in a warehouse or point of sale, waiting to be sold or used in production.

Servicescape

The physical surroundings in which a service takes place, and how they affect customers and employees.

Work Cell

An arrangement of machines and personnel that focuses on making a single product or family of related products.

Process-Oriented Layouts

Facility layouts designed around the production process, grouping together resources based on similar processes to optimize workflow and equipment utilization.