Rite Hardware Store orders 100 cases of galvanized nails from Safe-T Fastener Company's 1,000-case lot.Safe-T separates 100 cases from the lot.Title and risk of loss
A)remain with Safe-T until Rite acknowledges tender of delivery.
B)remain with Safe-T until Rite accepts 100 cases.
C)shift to Rite after it accepts the nails and inspects them for defects.
D)shift to Rite when Safe-T separates the cases.

Question

Quizplus · Accepted Answer

According to the scenario, Safe-T separates 100 cases from the lot. This means that the title and risk of loss will shift to Rite when the separation is completed. Therefore, the best choice is D.

Rite Hardware Store Orders 100 Cases of Galvanized Nails from Safe-T