Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 26

Brawn of California sold clothing through catalogs and over the Internet. When a customer placed an order, Brawn packaged it and held it at its warehouse, where it was picked up by a common carrier and delivered to the customer, using the address provided by the customer. Brawn's own insurance covered goods lost while in Brawn's possession but did not cover goods damaged or lost after they left Brawn's possession. Brawn recorded the revenue for the goods sold at the point of shipment and removed the goods from its inventory at the time of shipment. Jacq Wilson bought items from Brawn's catalogue and paid the insurance fee. He sued Brawn, alleging that in charging the fee, Brawn had violated the law. The case hinged on whether the sales contracts were shipment or destination contracts. Which were they? [Wilson v. Brawn of California Inc., 33 Cal. Rptr. 3d 769 (Cal. Ct. App.)]