Ross Plants Wholesalers contracts with Bi-Mart,Inc.for the sale of 24 pallets of fresh herbs and shrubs,to be delivered FOB to Bi-Mart in Emmett,Idaho.The 24 pallets are identified and put on a receiving dock.Before the shipper,EXpress Trucking,can pick them up and sign appropriate documentation,a fire destroys the plants causing a total loss.In this case,Ross Plants bears the risk of loss.

Question

Quizplus · Accepted Answer

In a contract involving goods to be delivered FOB (Free On Board) the buyer's location, the risk of loss passes to the buyer when the goods are delivered to the carrier, not when they reach the buyer. Since the goods were destroyed before being picked up by the carrier, Ross Plants still bears the risk of loss.

Ross Plants Wholesalers Contracts with Bi-Mart,Inc