Reviewing Chapter 20

REVIEWING

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.