[Topsya]

This question is from WTB.

Sand Corp. sold and delivered a photocopier to Barr for use in Barr’s business. According to their agreement, Barr may return the copier within 30 days. During the 30-day period, if Barr has not returned the copier or indicated acceptance of it, which of the following statements is correct with respect to risk of loss and title?

The correct answer is:

Risk of loss and title remain with Sand.

Because it is Sale on Approval. But why? Why not Sale or Return? So confused…. please help!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

Let's say someone steals the copier on day 29. If Barr had said on day 2 “I like it and I'll keep it.” then the risk of loss would have been on Barr when it was stolen on day 29. But Barr hasn't said this so the risk of loss is still on Sand. Key word in the problem is “approval”.

If the copier was stolen on day 32, then it's all on Barr, whether they said “I like it and I'll keep it.” or not. Keeping it beyond the approval date implies approval.

Make sense?

[Anonymous]

Let's say someone steals the copier on day 29. If Barr had said on day 2 “I like it and I'll keep it.” then the risk of loss would have been on Barr when it was stolen on day 29. But Barr hasn't said this so the risk of loss is still on Sand. Key word in the problem is “approval”.

If the copier was stolen on day 32, then it's all on Barr, whether they said “I like it and I'll keep it.” or not. Keeping it beyond the approval date implies approval.

Make sense?

[CPA soon]

It said DURING the 30-day period, it is worded confusing and it sounds like it's saying by the end of the 30-day period but it's not. So risk of loss has not passed yet.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[CPA soon]

It said DURING the 30-day period, it is worded confusing and it sounds like it's saying by the end of the 30-day period but it's not. So risk of loss has not passed yet.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Topsya]

Thanks guys!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

Thanks guys!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

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