Seller who is located in Atlanta,Georgia contracted to sell a shipment of peaches to the 1910 fruit gum company located in Buffalo,New York.The peaches were sold f.o.b.Buffalo.Seller delivered the peaches to the proper carrier in Atlanta and the peaches were destroyed during shipping.Under these facts:
A) This is a trick question; goods can't be shipped f.o.b. Buffalo.
B) Buyer bears the risk of loss and is responsible.
C) Seller and buyer share the risk of loss.
D) Seller bears the risk of loss and is responsible.
E) Neither the seller nor the buyer bear risk of loss, the carrier bears the risk of loss.

Question

Quizplus · Accepted Answer

When goods are sold f.o.b. destination, the seller bears the risk of loss until the goods are delivered to the buyer's premises. However, when goods are sold f.o.b. shipping point, as they were in this case, the buyer bears the risk of loss once the goods are delivered to the carrier. Therefore, the seller bears the risk of loss because the peaches were destroyed during shipping.

Seller Who Is Located in Atlanta,Georgia Contracted to Sell a Shipment