Rex Radios sells 400 i-pods to Scott Shops for $4000.00. The contract states that the i-pods are to be delivered to Witt's Warehouse until Scott Shops has room to store the i-pods. Rex delivered the i-pods to Witt's and produced the bill of lading to Scott Shop the next morning. A week later, the warehouse burns down destroying all of the i-pod inventory. According to the UCC, who bears the responsibility of the i-pods?
A) Rex Radios as they are the seller.
B) Witt's Warehouse as they stored the i-pods.
C) Scott Shops as title was passed once Rex delivered bill of lading to Scott.
D) The responsibility will be equally divided among all three parties involved in the transaction, Rex, Scott, and Witt.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) typically holds that title and risk of loss pass to the buyer once the seller has completed their delivery obligations. In this case, Rex Radios fulfilled its obligation by delivering the i-pods to the agreed-upon location (Witt's Warehouse) and providing the bill of lading to Scott Shops. Therefore, Scott Shops bears the responsibility for the loss.

Rex Radios Sells 400 I-Pods to Scott Shops for $4000