Jack and Reba purchased some furniture on a conditional sale contract. This couple carries no insurance on their household goods. The furniture is stolen one Sunday afternoon. Who will most likely take the loss?
A) The thieves, since this is a liability claim and they are to blame.
B) The merchant, since they still hold title and have insurance covering their insurable interests.
C) The bailee, since this is a bailment for value on the sale of goods.
D) This couple, because the conditional sale contract gives them strict liability.
E) The state, since this is a criminal case.

Question

Quizplus · Accepted Answer

In a conditional sale contract, the buyer typically assumes the risk of loss once they take possession of the goods, even if the title has not yet fully transferred. Since Jack and Reba have no insurance, they bear the loss.

Jack and Reba Purchased Some Furniture on a Conditional Sale