[Anonymous]

Pulse Corp. maintained a warehouse where it stored its manufactured goods. Pulse received an order from Star. Shortly after Pulse identified the goods to be shipped to Star, but before moving them to the loading dock, a fire destroyed the warehouse and its contents. With respect to the goods, which of the following statements is correct?

A. Pulse has title but no insurable interest.

B. Star has title and an insurable interest.

C. Pulse has title and an insurable interest.

D. Star has title but no insurable interest.

C. Title passes from the seller to the buyer only if the goods are identified in the sales contract. A buyer has an insurable interest from the time the goods are identified in the contract.

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It says if the goods are identified, the buyer has title and insurable interest. It says in the question that the goods are identified. So why is C correct, when Star, not Pulse, is the buyer?

[mla1169]

I think it depends on who the goods are identified by. If they haven't even been moved to the shipping dock there's no way the customer has either.

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[Anonymous]

I thought FOB meant on the dock or with a common carrier. I think the answer is correct.

[Author]

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