Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 14

B B Parts Sales, Inc., delivered merchandise to a store owned by Collier. The bill that accompanied the merchandise had the words "Sold to" printed on it, followed by Collier's name and address. The agreement was that any equipment not sold would be picked up in ninety days by B B Parts. While the merchandise was in Collier's store and before the ninety days were up, the store was burglarized and most of the merchandise was stolen. Collier claimed that the risk of loss was on B B Parts. B B Parts claimed that the sale was on a sale or return basis. Was B B correct? (Collier v. B B Parts Sales, Inc., Tex. 471 S.W.2d 151)