Organic Café orders five gallons of PureMaid-brand olive oil from Quico Oil Inc. Quico mistakenly ships Pure soy oil, which Organic keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by

Question

Quizplus · Accepted Answer

Organic Café bears the loss because under the Uniform Commercial Code (UCC), once goods have been accepted, even if they are nonconforming, the risk of loss passes to the buyer. Since Organic Café kept the nonconforming soy oil, they assumed the risk of loss.

Organic Café Orders Five Gallons of PureMaid-Brand Olive Oil from Quico