reviewing chapter 20 reviewing title risk and insurable interest in de
Reviewing Chapter 20
Title, Risk, and Insurable Interest
In December, Mendoza agreed to buy the broccoli grown on one hundred acres of Willow
Glen's one-thousand-acre broccoli farm. The sales contract specified F.O.B. Willow Glen's field by
Falcon Trucking. The broccoli was to be planted in February and harvested in March of the following
year. Using the information presented in the chapter, answer the following questions.
1. At what point is a crop of broccoli identified to the contract under the Uniform Commercial Code?
Why is identification significant?
2. When does title to the broccoli pass from Willow Glen to Mendoza under the contract terms? Why?
3. Suppose that while in transit, Falcon's truck overturns and spills the entire load. Who bears the loss,
Mendoza or Willow Glen?
4. Suppose that instead of buying fresh broccoli, Mendoza had contracted with Willow Glen to purchase
one thousand cases of frozen broccoli from Willow Glen's processing plant. The highest grade of broc-
coli is packaged under the "FreshBest" label, and everything else is packaged under the "FamilyPac"
label. Further suppose that although the contract specified that Mendoza was to receive FreshBest
broccoli, Falcon Trucking delivered Family Pac broccoli to Mendoza. If Mendoza refuses to accept the
broccoli, who bears the loss?
DEBATE THIS: The distinction between shipment and destination contracts for the purpose of deciding who will
bear the risk of loss should be eliminated in favor of a rule that always requires the buyer to obtain insurance for
the goods being shipped.
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