If the Contract Doesn't Say Who Bears the Loss If

question 64

Multiple Choice

If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

• A) George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday.
• B) Maureen contracts for Ms. Roberts' next year's pumpkin crop.
• C) Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container.
• D) Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month.
• E) While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory.

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Definitions:

Total Costs

The total amount of money spent on producing goods or services, encompassing both constant and fluctuating expenses.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Perfectly Price Discriminate

A theoretical market condition where a seller charges each buyer their maximum willingness to pay, capturing all potential consumer surplus.

Perfectly Price Discriminates

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay, capturing the entire surplus.