Required information

1. Identifying goods to a contract and transfer of title under the Uniform Commercial Code

Skip to question

Identifying goods to a contract and transfer of title under the Uniform Commercial Code

Bentley is a manager at a high-end printing company called Graphic Communications Inc. (GCI). GCI designs and produces posters and other materials for advertising purposes for a variety of clients, including a local symphony orchestra and Main Street University. After GCI received a large order from the university that required a special press, Bentley was assigned to locate a suitable press, negotiate the purchase terms, and arrange for delivery no later than July 1. Bentley negotiated a price with Armstrong Press Manufacturing for the Armstrong model 2000 printing press. The press was sufficiently large as to require that it be delivered in three separate pieces and then assembled on-site. One factor in choosing Armstrong as a vendor was that GCI had used Armstrong before for purchases of smaller presses and had been satisfied with its products and services. In those previous transactions, GCI had used its own standard preprinted purchase order, and no disputes developed. Once the parties agreed on price, Bentley issued a preprinted purchase order. The purchase order was one page long and had very few terms. It contained only the price, description of the press, the date of the purchase order, a provision that agreed that all three pieces of the press would be delivered and operational by July 1, and Bentleys signature. After Armstrong received the purchase order, Armstrongs manager handwrote this phrase in the delivery section of the purchase order: Acknowledged as a destination contract. To be delivered and assembled in three installments to GCI over the month of May. Armstrongs manager then signed the purchase order, faxed the purchase order back to Bentley, and began to process the order. Armstrong shipped the first part of the press using a common freight carrier delivery service. Before delivery, the truck was involved in an accident, and the first part of the press was destroyed.

1a. Prior to the contract existing, Armstrong had...

Prior to the contract existing, Armstrong had ownership of the parts of the press. This ownership is properly referred to as which of the following?

Multiple Choice

a. Purchase order.

b. Title.

c. Risk of loss.

d. Shipment contract.

e. Insurable interest.