Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. Reynaldo ships the oranges "F.O.B. Quaff n' Quench" via Sham Shipping Company. The oranges rot in transit. The loss is suffered by
A) Quaff n' Quench.
B) Sham.
C) F.O.B.
D) Reynaldo.

Question

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. Reynaldo ships the oranges "F.O.B. Quaff n' Quench" via Sham Shipping Company. The oranges rot in transit. The loss is suffered by​
A) ​Quaff n' Quench.
B) Sham.
C) ​F.O.B.
D) ​Reynaldo.

Quizplus · Accepted Answer

"F.O.B. Quaff n' Quench" means that Reynaldo Produce, Inc. retains the risk of loss until the oranges reach Quaff n' Quench Café. Since the oranges rotted in transit, Reynaldo bears the loss.

Quaff N' Quench Café Buys Twenty-Five Crates of Oranges from Reynaldo