Question 1) Thomas Leisure Cruises, located in Seattle, purchases seventeen pontoons from Harbor Boat Company, located in San Francisco, for $25,000 each, FOB San Francisco. Harbor Boat Company places the pontoons on a train in San Francisco for shipment to Seattle. While traveling to Seattle, the train is involved in an accident with a school bus, and the pontoons are destroyed. Who bears the risk of loss?

A) Harbor Boat Company.

B) Thomas Leisure Cruises.

C) Thomas Leisure Cruises and Harbor Boat Company will equally share the risk of loss.

D) Neither Thomas Leisure Cruises nor Harbor Boat Company.

Question 2) Julia purchases a customized recreational vehicle from RV Sales Inc. for $55,500. Julia is in the process of preparing the campsite where she will park the RV, so she asks RV Sales to hold the recreational vehicle for her for three weeks. A week later, an 18-wheeler delivering parts to RV Sales backs into Julia's recreational vehicle, completely destroying it. The risk of loss for the recreational vehicle is born by:

A) Neither Julia nor RV Sales Inc.

B) RV Sales, Inc.

C) Both Julia and RV Sales Inc.

D) Julia.

Question 3) On October 25, Alvin agrees to purchase 5,000 baseballs from Sports USA for $15,000. The baseballs are stored in Waring's Warehouse. On November 1, Alvin pays Sports USA $15,000, and on November 2 Sports USA provides Alvin with a warehouse receipt. On November 10, Alvin picks up the 5,000 baseballs from Waring's Warehouse to transport them to his facility. The title to the baseballs passes to Alvin:

A) on November 2, when Sports USA provides Alvin with the warehouse receipt.

B) on November 1, when Alvin pays Sports USA $15,000.

C) on November 10, when Alvin picks up the 5,000 baseballs from Waring's Warehouse.

D) on October 25, when Alvin and Sports USA formed the contract for the sale of baseballs.

Question 4) Alyah purchases seven 1873 Winchester Muskets from Heinz Antique Firearms to sell in Alyah's antique store. The price for the rifles is $4,200 each. Alyah pays $2,000 at the time of purchase and promises to pay the balance when the guns are sold, as well as interest on balance until the guns are sold. Heinz Antique Firearms wants to make sure it eventually would get its money, so Heinz purchases insurance on the muskets. Before any of the muskets are sold, a burglar breaks into Alyah's antique store and steals the muskets. Will Heinz Antique Firearms be able to collect on the insurance policy covering the muskets?

A) Yes, Heinz can collect on the insurance policy because a seller always retains an insurable interest on any products it sells.

B) Yes, Heinz can collect on the insurance policy because Heinz has an insurable interest in the muskets.

C) Yes, Heinz can collect on the insurance policy because the goods have been identified to the contract.

D)No, Heinz cannot collect on the insurance policy because it does not have an insurable interest in the muskets.