Business Law 4th Edition by David Twomey,Marianne Jennings

Exercise 13

Brown Sales ordered goods from Eberhard Manufacturing Co. The contract contained no agreement about who would bear the risk of loss. There were no shipping terms. The seller placed the goods on board a common carrier with instructions to deliver the goods to Brown. While in transit, the goods were lost. Which party will bear the loss? Explain. [Eberhard Manufacturing Co. v Brown, 232 NW2d 378 (Mich App)]