XL Electronics orders thirty hard drives from Yang Computers, Inc. The hard drives are stored in City Warehouse. Under the terms of the or?der, Yang must give XL a warehouse receipt for the goods, which XL will then pick up. Title to the goods passes to XL when
A) City Warehouse stores the goods.
B) XL orders the goods.
C) XL picks up the goods.
D) Yang gives XL a warehouse receipt for the goods.

Question

Quizplus · Accepted Answer

Title to the goods passes to XL when Yang gives XL a warehouse receipt for the goods. This is because a warehouse receipt is a document of title, which means it represents ownership of the goods. Once XL has the warehouse receipt, they have legal title to the goods even though they have not physically picked them up yet.

XL Electronics Orders Thirty Hard Drives from Yang Computers, Inc