Name_________________________________ Business Law II Chapter 16 – Guided Notes 16-2 – Risk of Loss and Insurable Interest The risk of loss from seller to buyer _______________ always occur when title transfers. List the possible alternatives regarding when the transfer of risk of loss takes place below: 1. 2. 3. 4. What does FOB stand for and mean? What does CIF stand for and mean? What are three situations that the risk of loss transfers to the buyer under a circumstance called a bailee? 1. 2. 3. What is the most common type of transaction for groceries and other low-priced items? This is used to pay for an item when ownership and risk of loss transfers even though payment is scheduled to made at a later date? What type of sale is used when a buyer gives up the right to accept the goods before payment is made? Name_________________________________ In the sale or return provision, the goods must be in the _____________ condition to be accepted back from the seller. What is a sale on approval and give an example of this type of transaction? At what time does ownership and risk of loss pass hands at an auction? The transfer, generally by sale, of all or a major part of the goods of a business in one unit at one time is called a _____________________.