Mini-Case:

Read the scenario below and answer the following questions relating to the sale of a title.

Hugo, a 21-year-old man, is birthday shopping for his mother over the online classifieds. While browsing the Internet for sale ads, he notices a particularly good deal on a 14-carat gold necklace with matching 1/3-carat diamond earrings. The seller says the jewelry is brand new, still in the box, and wants only $359 for the entire set. Hugo immediately e-mails the seller and arranges for the purchase of the jewelry. Hugo pays the seller, receives the necklace and earrings, and intends to give them to his mother for her birthday.

4a. What is the sale of a title?

What is the sale of a title?

Multiple Choice

A. When the goods become part of the buyer's inventory and can serve as collateral for a loan.

B. When the original parties would be void but the goods have already been sold to a third party.

C. The passing of title from the seller to the buyer for a price.

D. When insurance on goods can be purchased.

E. When a buyer can sell goods to a third party.