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 and 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.

Question

Quizplus · Accepted Answer

Buyers may protect their interest in goods before they obtain title to them,since they have an insurable interest in goods at the moment the goods are identified to the contract.Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them.