[Singapore Sculptures] Mavis purchased a sculpture for her home in Hawaii from Juno, who owns an art gallery in Singapore. Mavis tells Juno she is concerned about shipping because there is no agreement between Singapore and Indonesia regarding piracy and she wants to ensure that Juno will be responsible for any damage to the sculpture until Mavis can pick it up on the dock when the ship arrives in Hawaii. Juno tells Mavis there are no longer any piracy concerns in the area and that he will be responsible for the sculpture until it is removed from the ship in Hawaii. Another customer, Adler, also purchases a sculpture. Juno delivers both sculptures to the dock. Mavis' sculpture is accompanied by their contract and Adler's sculpture is accompanied by a document containing the words "Deliver to the Order of Juno", and is endorsed by Juno. The ship travels through a storm, capsizes, and the sculptures are destroyed.
-Who has the risk of loss for the sculpture purchased by Adler?
A) Juno, because the contract was silent as to who bore the risk of loss.
B) Juno, because the document contained the words "deliver to the order of Adler".
C) Adler, because the contract was silent as to who bore the risk of loss.
D) Adler, because Juno endorsed a negotiable instrument to him.
E) The ship, because it had possession of the sculpture at the time of the loss.
Correct Answer:
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