When is product ownership transferred from the vendor to the purchaser?

When is product ownership transferred from the vendor to the purchaser?

• A. Upon payment
• B. The delivery invoice is signed
• C. When goods are inspected
• D. When the order is placed

Answer: (B)

Ownership passes when the goods are delivered and received, which is evidenced by signing the delivery invoice. This sign-off confirms that the purchaser accepts the goods and takes title to them, along with the associated risk, at the moment of delivery. Payment timing doesn’t automatically transfer ownership, especially when credit terms are involved. Inspection happens after delivery to verify quality and quantity, but it doesn’t by itself move title. And placing the order occurs before delivery, so ownership isn’t transferred then.

Ownership passes when the goods are delivered and received, which is evidenced by signing the delivery invoice. This sign-off confirms that the purchaser accepts the goods and takes title to them, along with the associated risk, at the moment of delivery. Payment timing doesn’t automatically transfer ownership, especially when credit terms are involved. Inspection happens after delivery to verify quality and quantity, but it doesn’t by itself move title. And placing the order occurs before delivery, so ownership isn’t transferred then.