Kenneth purchased a car from his local dealership,Quartent Cars.However,since the car was not available in the color that Kenneth favored,the sales contract stipulated that Kenneth could immediately pick up the car from a nearby warehouse it was housed in.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson around a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire in the warehouse.According to the UCC,which of the following parties holds the risk of loss for the damage caused to the car?

Question

Quizplus · Accepted Answer

CUnder the Uniform Commercial Code (UCC), the risk of loss passes to the buyer (Kenneth) when the buyer receives the document of title or the goods. Since Kenneth had received the document of title, he bears the risk of loss. However, Quartent Cars, as the seller, may also bear the risk of loss if the goods were identified to the contract (specifically designated for the contract) before the risk was passed to Kenneth, and no breach of contract has occurred. This is because the UCC sometimes holds sellers responsible until delivery is completed, especially in cases involving specific goods identified to the contract.

Kenneth Purchased a Car from His Local Dealership,Quartent Cars