[I'm, Ron Burgundy?]

Hey Everyone,

I’m about 2 1/2 weeks out from my REG exam and am going through my final review/re-writing notes.

I found what appears to be an inconsistency in my notes and I’m hoping someone can clarify this for me.

I have two separate notes written as follows:

1. Regardless of the shipping terms: If the wrong goods are shipped, risk of loss remains with the seller.

2. In shipment contracts, title passes to the buyer when the goods are delivered to the common carrier, even if the goods are non-conforming

It seems as if these two notes are contradictions. Note number one is coming from the book / video lecture (Becker), and number two coming from a homework question explanation, I’m hoping someone can explain the difference, if their is one. The only thing that could be fuzzy is that #1 uses the term “wrong goods” and #2 uses the term “non-conforming goods.”

In any case, I think that number 1 is a correct statement, however, I’m not too sure about number two.

Thoughts?

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[Gatorbates]

FOB Shipping pt, title of goods pass to the buyer upon goods being delivered to carrier.

FOB destination, title of goods pass to buyer upon receipt at their location.

However, if the goods are the wrong goods or non-conforming goods, title always remains with the seller, regardless of the FOB point.

That's how I've always understood it.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Gatorbates]

FOB Shipping pt, title of goods pass to the buyer upon goods being delivered to carrier.

FOB destination, title of goods pass to buyer upon receipt at their location.

However, if the goods are the wrong goods or non-conforming goods, title always remains with the seller, regardless of the FOB point.

That's how I've always understood it.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[I'm, Ron Burgundy?]

@Gatorbates,

That's also how I always understood it. I think that in my note taking I wrong the wrong thing being in a hurry. I'm going with the answer you gave, it seems to make the most sense. Why would the buyer have responsibility over goods that were wrong, unless of course, they accepted the goods as part of a counter-offer.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[I'm, Ron Burgundy?]

@Gatorbates,

That's also how I always understood it. I think that in my note taking I wrong the wrong thing being in a hurry. I'm going with the answer you gave, it seems to make the most sense. Why would the buyer have responsibility over goods that were wrong, unless of course, they accepted the goods as part of a counter-offer.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[UCMCPA]

I was under the impression….Your RISK OF LOSS depends on the shipping terms, NOT who has title.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

I was under the impression….Your RISK OF LOSS depends on the shipping terms, NOT who has title.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Author]

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