Asked by
Retro Black
on Dec 18, 2024
Verified
Who bears the risk of loss for the second delivery?
A) The Dive Shop, because the risk of loss transferred to the buyer on delivery.
B) The Dive Shop, because they had no right to refuse delivery of conforming goods.
C) Both parties share the risk of loss equally.
D) ScubaCo because in a destination contract, the risk remains with the seller.
E) ScubaCo because it had previously delivered nonconforming goods.
Risk Of Loss
The possibility that an asset or investment will decrease in value or become completely worthless.
Destination Contract
A contract specifying that the seller will bear the risk and cost until the goods reach a specific destination.
Nonconforming Goods
Products shipped to a buyer that do not meet the specifications or requirements as stated in the contract.
- Examine the legal ramifications associated with non-compliant products and explore the available avenues for both purchasers and sellers.
- Comprehend the methodology behind determining and mitigating risk within sales agreements.
Verified Answer
BA
Learning Objectives
- Examine the legal ramifications associated with non-compliant products and explore the available avenues for both purchasers and sellers.
- Comprehend the methodology behind determining and mitigating risk within sales agreements.