Pimples and Fluffy are the owners and operators of Spaz, Inc., a Texas corporation selling retail electronic products from a shop in a Dallas mall.

1. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB Spaz, Inc., Dallas, Texas." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. The Crushed Freight truck is waiting at the supplier's loading dock. The supplier has identified the 20 computers and is moving them to the loading dock before putting them on the truck. A fire breaks out in the warehouse through no fault of the supplier and all 20 computers are a total loss. As to the computers, which is a correct statement?

a. The supplier has title and an insurable interest.

b. The supplier has title but does not have an insurable interest.

c. The supplier has an insurable interest but does not have title.

d. The supplier has neither title nor an insurable interest.

2. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB Spaz, Inc., Dallas, Texas." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. The Crushed Freight truck is waiting at the supplier's loading dock. The supplier has identified the 20 computers and is moving them to the loading dock before putting them on the truck. A fire breaks out in the warehouse through no fault of the supplier and all 20 computers are a total loss. As to the computers, which is a correct statement?

a. Spaz has title and an insurable interest.

b. Spaz has title but does not have an insurable interest.

c. Spaz has an insurable interest but does not have title.

d. Spaz has neither title nor an insurable interest.

3. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB Spaz, Inc., Dallas, Texas." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. When does title to the computers pass from the supplier to Spaz?

a. When the supplier loads the goods onto the truck.

b. When the goods are tendered for delivery at the Spaz shop.

c. When Spaz pays for the goods.

4. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB Spaz, Inc., Dallas, Texas." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. Unfortunately, the supplier puts the wrong computers on the truck. What is the status of title to the computers if Spaz rejects them upon receipt?

a. The supplier retained title throughout the transaction since the seller is in breach.

b. Title reverted back to the supplier once Spaz rejected the computers.

5. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB Spaz, Inc., Dallas, Texas." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. The supplier puts 20 conforming computers onto the truck sent by the carrier. While the goods are in transit between the supplier's warehouse and the Spaz store, who has risk of loss?

a. Spaz

b. the supplier

6. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB supplier's warehouse." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. The supplier puts 20 conforming computers onto the truck sent by the carrier. While the goods are in transit between the supplier's warehouse and the Spaz store, who has risk of loss?

a. Spaz

b. the supplier

7. Spaz orders 20 new computers from its supplier. The computers are stored in a warehouse owned by the supplier. The contract requires shipment "FOB supplier's warehouse." The supplier has engaged Crushed Freight, Inc., a common carrier, to deliver the computers to Spaz. The supplier puts the wrong computers onto the truck sent by the carrier. While the goods are in transit between the supplier's warehouse and the Spaz store, who has risk of loss?

a. Spaz

b. the supplier

8. A customer of Spaz needs parts for an outdated computer system. Pimples promises to find the parts if they are available. He locates the parts at a friend who has built his own computer systems since Bill Gates and Steve Jobs first wrote code together at Apple. The friend, however, is not in the business of selling any computers or parts. Pimples goes to his friend's house and contracts to buy the parts for $300. The parts are available immediately, but Pimples says he will pick them up the next day. That night a fire destroys the friend's house and the computer parts through no fault of the friend. Who has risk of loss as to the parts?

a. Pimples because delivery had been tendered before the fire.

b. Pimples because there was an enforceable contract to buy the parts.

c. The friend because he did not insist on Pimples taking them the night before the fire.

d. The friend because Pimples was not in actual physical possession of the parts.

9. A customer of Spaz needs parts for an outdated computer system. Pimples promises to find the parts if they are available. Pimples locates the parts at a small computer dealer in Fort Worth, Texas. Pimples contracts to buy them for $300. The parts are available for immediate pickup, but Pimples says he will get them the next day. That night a fire destroys the parts at the Forth Worth dealer's store through no fault of the dealer. Who has risk of loss as to the parts?

a. Pimples because delivery had been tendered before the fire.

b. Pimples because there was an enforceable contract to buy the parts.

c. The Fort Worth dealer because he did not insist on Pimples taking the parts immediately.

d. The Fort Wroth dealer because Pimples was not in actual physical possession of the parts.

10. Spaz sells Big Woofer stereos. Big Woofer is no longer manufacturing any Model MMX stereos. Spaz has only one Model MMX still in stock. A customer orders this Model MMX over the telephone. Payment is by credit card over the telephone. Pimples takes the order and the credit card number. The customer arranges to pick up the Model MMX before closing that evening. Pimples does not tell Fluffy that he sold the Model MMX and leaves it on the display shelf with no marking that it has been sold. Fluffy sells the Model MMX to another customer who takes it with him. Who gets the Model MMX?

a. The customer who purchased from Pimples over the telephone

b. The customer who purchased from Fluffy in the store

c. Neither. The stereo will be resold to another customer.