Asked by taylor christy on Apr 27, 2024
Verified
Roberta receives a document of title for lumber she purchased.Even though she does not yet possess the lumber,the document transfers to her both title to the lumber and risk of loss for it.
Document of Title
Legal documentation evidencing a person's right to the control or ownership of goods, typically used in the context of shipping or storage.
Risk of Loss
The potential that an investment's value may decrease, or that one may incur losses from a business transaction.
Lumber
Wood that has been processed into beams and planks, a stage in the process of wood production.
- Analyze the role of documents of title in transferring title and risk of loss.
Verified Answer
NJ
nefertiti johnsonMay 01, 2024
Final Answer :
True
Explanation :
A document of title, such as a bill of lading, serves as proof of ownership and transfer of title for goods, including lumber. Therefore, upon receiving the document, Roberta becomes the owner of the lumber and assumes the risk of loss, even if she does not physically possess the lumber yet.
Learning Objectives
- Analyze the role of documents of title in transferring title and risk of loss.