When a bailee is holding goods that are to be delivered under a contract without being moved, risk of loss passes when the bailee acknowledges the buyer's right to the goods.

Question

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Under the Uniform Commercial Code (UCC), when goods are held by a bailee and are to be delivered without being moved, the risk of loss passes to the buyer when the bailee acknowledges the buyer's right to possess the goods. This is typically done through a document of title or by the bailee's acknowledgment.

When a Bailee Is Holding Goods That Are to Be