[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.
-Assuming Adler must bear the risk of loss of his sculpture, if he sues the ship to recover damages, would the lawsuit likely be dismissed?
A) No, because Adler had an insurable and special interest and, thus, has standing to sue.
B) No, because the ship was not at fault.
C) Yes, because Adler bears the risk of loss according to his contract with Juno.
D) Yes, because Adler did not have an insurance interest in the sculpture.
E) Yes, because the ship was not a party to the contract.
Correct Answer:
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