Understanding Insurable Interest in the Sale or Lease of Goods

The video tutorial discusses the sale and lease of goods under state contract law, focusing on the Uniform Commercial Code (UCC) and its consistency across states. It highlights the importance of insurable interest, which allows parties to protect their goods under an insurance policy. The tutorial explains when an insurable interest is acquired, referencing UCC provisions for sales and leases. It also covers special cases, such as agriculture and livestock, where insurable interest is determined by the contract and identification of goods.

Which legal framework do most states follow for the sale and lease of goods?

• International Sale of Goods Act

• Consumer Protection Act

• Uniform Commercial Code

• Federal Trade Commission Act

Why is determining the point of insurable interest important?

• To establish the manufacturing cost of goods

• To determine the resale value of goods

• To ensure goods are covered by insurance against loss or damage

• To calculate the tax on goods

According to the UCC, when does an individual acquire an insurable interest in goods?

• When the goods are delivered to the buyer

• When the contract for sale is made

• When the goods are advertised for sale

• When the goods are returned by the buyer

In which scenario does a farmer acquire an insurable interest in livestock?

• When the livestock is transported

• When the livestock is born

• When the livestock is sold

• When the livestock is vaccinated

What is a key factor in determining insurable interest for manufactured goods?

• The goods are priced

• The goods are stored in a warehouse

• The goods are identified to the contract

• The goods are advertised