[Anonymous]

West purchased a painting from Noll, who is not in the business of selling art. West is picking up the painting from Noll. Noll tendered delivery of the painting after receiving payment in full from West. West informed Noll that West would be unable to take possession of the painting until later that day. Thieves stole the painting before West returned. The risk of loss:

A: Remained with Noll, because West had not yet received the painting.

B: Remained with Noll, because the parties agreed on a later time of delivery.

C: Passed to West at the time the contract was formed and payment was made.

D: Passed to West on Noll’s tender of delivery.

WIll attempt to find the answer once I’m done with the CPAexcel practice session (it doesn’t organize the answers as neatly as Wiley).

[Kenada]

D: Passed to West on Noll's tender of delivery.

I would have picked that as the answer because Noll is not a merchant and the moment he makes a tender to deliver the risk of loss is passed on to West

FAR 05/27/14; 786/110 - Done !

[Kenada]

D: Passed to West on Noll's tender of delivery.

I would have picked that as the answer because Noll is not a merchant and the moment he makes a tender to deliver the risk of loss is passed on to West

FAR 05/27/14; 786/110 - Done !

[Study Monk]

tender of delivery:

Placement of purchased goods at the buyer's disposal according to the terms of a contract. Seller's any failure without just cause to deliver, and buyer's any failure without just cause to take delivery, may constitute a breach of contract.

Read more: https://www.businessdictionary.com/definition/tender-of-delivery.html#ixzz2o35YnJvn

I vote Noll A)

Everything that I have read has implied a minimum requirement of legal transfer is delivery unless consignment is involved.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

tender of delivery:

Placement of purchased goods at the buyer's disposal according to the terms of a contract. Seller's any failure without just cause to deliver, and buyer's any failure without just cause to take delivery, may constitute a breach of contract.

Read more: https://www.businessdictionary.com/definition/tender-of-delivery.html#ixzz2o35YnJvn

I vote Noll A)

Everything that I have read has implied a minimum requirement of legal transfer is delivery unless consignment is involved.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Anonymous]

Found it (took a painfully long time to dig through the answer). Anyways, here is what CPAexcel says:

Correct answer: D. In this case, there is a contract for delivery of goods without physical movement not represented by a document of title. Since Noll is a nonmerchant, risk of loss passes to West upon Noll's tender of delivery. Thus, delivery need not be actually made for risk of loss to pass from seller to buyer. Delivery is tendered when, as was the case in this question, the goods are made available for a reasonable time for pick-up by the buyer.

I had a similar question on Wiley Test Bank and could have sworn that the risk of loss was still the person who sold it since it was in his possession. Study Monk I agree with you that I think it should be A. Oh well, another reason I don't like using CPAexcel.

[Anonymous]

Found it (took a painfully long time to dig through the answer). Anyways, here is what CPAexcel says:

Correct answer: D. In this case, there is a contract for delivery of goods without physical movement not represented by a document of title. Since Noll is a nonmerchant, risk of loss passes to West upon Noll's tender of delivery. Thus, delivery need not be actually made for risk of loss to pass from seller to buyer. Delivery is tendered when, as was the case in this question, the goods are made available for a reasonable time for pick-up by the buyer.

I had a similar question on Wiley Test Bank and could have sworn that the risk of loss was still the person who sold it since it was in his possession. Study Monk I agree with you that I think it should be A. Oh well, another reason I don't like using CPAexcel.

[teeteenounouche]

I am starting to see WTB questions in CPAExcel now, ever since they updated for 2014…

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[teeteenounouche]

I am starting to see WTB questions in CPAExcel now, ever since they updated for 2014…

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[ymmit]

This question is in becker also

Licensed CPA!

[ymmit]

This question is in becker also

Licensed CPA!

[teeteenounouche]

lmao! I guess we are all paying for the same questions…might as well go with the cost effective ones!

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[teeteenounouche]

lmao! I guess we are all paying for the same questions…might as well go with the cost effective ones!

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[Anonymous]

I had a similar question on Wiley, and here is what I have come to understand on this topic. If a sale is made but the item has not been delivered, if the seller is a merchant, the title passes upon delivery of goods. If the seller is not a merchant, the title passes upon tender of delivery.

[Anonymous]

I had a similar question on Wiley, and here is what I have come to understand on this topic. If a sale is made but the item has not been delivered, if the seller is a merchant, the title passes upon delivery of goods. If the seller is not a merchant, the title passes upon tender of delivery.

[thehip41]

It's not A or B since that person has the money.

So it's C or D.

We have three things happen.

contract (or agreement) to buy the painting

payment

delivery

With C, only the agreement and payment have been made. Person A still has control of the painting. If the painting gets stolen, Person A should have to return the money, and Person A would take the loss.

In answer D, delivery has been made, but Person B hasn't picked it up yet. The transaction is over.

A has money

B has painting

Painting gets stolen, B takes loss.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[Author]

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