What are the different ways that title transfers under UCC Article 2? Which party bears the risk?
What distinguishes a sale on approval, sale on consignment, and sale or return under UCC Article 2?
What are the remedies for contract breach available under UCC Article 2?
What are the types of warranties available under UCC Article 2? How do you differentiate between implied and express warranties under UCC Article 2? Provide examples.
Under UCC Article 2, a purchaser of goods acquires all title which his transferor had or had the power to transfer. The purchaser of limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. In case of the good faith purchaser, the seller bears the risk. Similarly, if the goods are entrusted to a merchant in ordinary course of duty, the title gets transferred to the merchant.
According to 2-326 (a), sale on approval takes place if the good are delivered for use, however, under 2-326 (b), sale or return applies if the goods are delivered mainly for resale. The ...
UCC Article 2 is discussed in great detail in this solution.