In the Text's Case of National Compressor Corp

question 7

Multiple Choice

In the text's case of National Compressor Corp. v. Carrow and McGee, the court considered whether a buyer, who purchased a compressor that was subsequently destroyed in a fire on a third party's premises before the buyer took possession, had an insurable interest since title had not yet passed and thus could bring suit against the third party. What was the court's ruling?

• A) The buyer could not sue the third party because it did not have an insurable and special interest.
• B) The buyer had an insurable and special interest but could not sue the third party because the goods had not been identified to the contract.
• C) The buyer had an insurable and special interest and could sue the third party because the goods had been identified to the contract.
• D) The buyer had an insurable and special interest and could sue the third party regardless of whether or not goods had been identified to the contract.
• E) The buyer could not sue the third party because title had not passed and thus, it did not have an insurable interest.

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Definitions:

Operating Expenses

Regular costs associated with running a business or an organization, such as salaries, rent, utilities, and equipment maintenance.

Unit Owner

A person or entity that legally owns a single unit within a multi-unit property, such as a condominium or an apartment within a complex.

Escheat To The Crown

A legal process where unclaimed or ownerless land and property revert back to the state or monarch.

Electronic Commerce

The act of purchasing and selling products and services, or the transfer of money and information, primarily through the internet.