Jason orders 100 remote-controlled toy cars from RyBy Toys.In the contract,it is stipulated that RyBy Toys would transport the toy cars via FlyByNight,a national carrier service.RyBy Toys makes the arrangements and hands over the toys,minus the remote-controllers,to FlyByNight,to be delivered to Jason.In the event that the goods are destroyed in transit,which of the following parties would bear the risk of loss as per the sales contract?

Question

Quizplus · Accepted Answer

In sales contracts, the risk of loss typically passes to the buyer when the seller has fulfilled their obligation to deliver the goods as per the contract terms. However, if the goods delivered are nonconforming (in this case, the toy cars were shipped without the remote controllers, which are presumably essential for their operation), the risk of loss remains with the seller until either the goods are replaced with conforming goods or the buyer accepts the nonconforming goods despite the defects. Since RyBy Toys shipped nonconforming goods, they would bear the risk of loss until the issue is rectified.

Jason Orders 100 Remote-Controlled Toy Cars from RyBy Toys