Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 8

Sale or Return Zeke, who sells lawn mowers, tells Stasio, a regular customer, about a special promotional campaign. On receipt of a $50 down payment, Zeke will sell Stasio a new Universal lawn mower for $200, even though it normally sells for $350. Zeke also says that if Stasio does not like the performance of the lawn mower, he can return it within thirty days, and Zeke will refund the $50 down payment. Stasio pays the $50 and takes the mower. On the tenth day, the lawn mower is stolen through no fault of Stasio's. Stasio calls Zeke and demands the return of his $50. Zeke claims that Stasio should suffer the risk of loss and that he still owes Zeke $150 for the rest of the purchase price. Discuss who is correct, Stasio or Zeke.