Ownership GOALS LESSON 15-2 Chapter 15 LESSON 15-2 Ownership GOALS Discuss the benefits and burdens of ownership of property Compare the various methods of acquiring property Explain the unique role of merchants and why and how they are treated specially by the law

Chapter 15 RESULTS OF OWNERSHIP It is important to know the difference between a sale and a contract to sell because both benefits and burdens generally go with ownership. Therefore it is necessary to know when ownership transfers from one party to another.

(#5)BENEFITS OF OWNERSHIP Chapter 15 (#5)BENEFITS OF OWNERSHIP Any rise in value belongs to the owner Goods may be enjoyed or used as the owner pleases Goods may be squandered or destroyed

(#5)BURDENS OF OWNERSHIP Chapter 15 (#5)BURDENS OF OWNERSHIP Owners may be taxed on property Freedom to use one’s property may be limited by government regulation The duty to care for or use the property in a manner that does not interfere with the rights of others. Owners may be liable if property violates environmental protection laws or if another person, with permission, uses the goods to injury another. Property may also decrease in value, or be destroyed, damaged, lost, or stolen.

Chapter 15 (#3) The owner has no recourse. The only recovery possible is if the goods are insured.

Chapter 15 WHAT’S YOUR VERDICT? Will they succeed?

TRANSFERS OF OWNERSHIP AND POSSESSION Chapter 15 TRANSFERS OF OWNERSHIP AND POSSESSION In most cases, the UCC treats all buyers and sellers alike. A merchant is a seller who deals regularly in a particular kind of goods or otherwise claims to have special knowledge or skill in a certain type of sales transaction Casual sellers – seller who does not meet the definition of a merchant.

TRANSFERS OF OWNERSHIP AND POSSESSION Chapter 15 TRANSFERS OF OWNERSHIP AND POSSESSION (#7) Merchants, as contrasted with casual sellers, sell particular goods regularly and should have special knowledge or skill in their type of sales transaction. (#7) Therefore, they are usually held to a higher standard of conduct than casual sellers. (#7) They may be required to have licenses and are usually subjected to special taxation and closer regulation.

TRANSFERS OF OWNERSHIP AND POSSESSION Chapter 15 TRANSFERS OF OWNERSHIP AND POSSESSION (#4) Leases, contracts to sell, and bailments.

TRANSFERS OF OWNERSHIP AND POSSESSION (#6) Chapter 15 TRANSFERS OF OWNERSHIP AND POSSESSION (#6) Gift: personal or real property; usually no evidence except a deed for real property Conveyance: real property; contract and deed Lease: usually real property; lease (a contract) Sale: goods; contract, bill of sale Contract to sell: goods; contract

TRANSFERS OF OWNERSHIP AND POSSESSION (#6) Chapter 15 TRANSFERS OF OWNERSHIP AND POSSESSION (#6) Barter: goods; contract Negotiation: negotiable instruments; commercial paper (contract) Assignment: contract rights; contract Bailment: personal property; contract (in commercial bailment)

WHAT’S YOUR VERDICT? What types of transactions did they utilize? Chapter 15 WHAT’S YOUR VERDICT? What types of transactions did they utilize?