Cengage Advantage Books: Business Law 13th Edition by Roger LeRoy Miller

Exercise 11

Risk of Loss Mackey orders from Pride one thousand cases of Greenie brand peas from lot A at list price to be shipped F.O.B. Pride's city via Fast Freight Lines. Pride receives the order and immediately sends Mackey an acceptance of the order with a promise to ship promptly. Pride later separates the one thousand cases of Greenie peas and prints Mackey's name and address on each case. The peas are placed on Pride's dock, and Fast Freight is notified to pick up the shipment. The night before the pickup by Fast Freight, through no fault of Pride's, a fire destroys the one thousand cases of peas. Pride claims that title passed to Mackey at the time the contract was made and that risk of loss passed to Mackey when the goods were marked with Mackey's name and address. Discuss Pride's contentions.