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Rosco, of Salem, New York, Purchased 2,500 Pounds of Spaghetti

Question 23

Multiple Choice

Rosco, of Salem, New York, purchased 2,500 pounds of spaghetti from the Arco Corporation of Buffalo, New York, terms FOB Buffalo. Several boxes of spaghetti were lost in transit. Which statement concerning responsibility for the loss is correct?


A) The Arco Corporation will not suffer the loss because risk of loss passed to Rosco when the agreement was made.
B) Rosco will suffer the loss because risk of loss passed to him when the goods were delivered to the common carrier at Buffalo.
C) The Arco Corporation will suffer the loss because risk of loss did not pass to Rosco until the goods arrived at Salem.
D) Rosco will not suffer the loss because risk of loss did not pass to him until the goods were delivered to his door.

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