In a sale of oranges from Citrus Grove Farms to Juice Factory Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Juice in this circumstance are generally determined by
A) the right of ownership.
B) who has title.
C) the concepts of identification and risk of loss.
D) all of the choices.

Question

Quizplus · Accepted Answer

Under the UCC, the concepts of identification and risk of loss determine the rights and liabilities in cases of loss or destruction of goods before delivery. Identification refers to the point at which the specific goods are identified to the contract, and risk of loss refers to which party bears the risk of loss for the goods during transportation. Depending on the terms of the contract between Citrus and Juice, either party may be responsible for the loss, and the determination of risk of loss and identification will determine who bears that risk. Ownership and title are relevant factors but do not necessarily determine the outcome in this situation.

In a Sale of Oranges from Citrus Grove Farms to Juice