Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They are sent "F.O.B. Hartford, Connecticut," but they never arrive. What consequence?
A) Inga has to pay anyway since it was a destination contract.
B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point.
C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga.
D) It cannot be determined who has the risk of loss from the information given.

Question

Quizplus · Accepted Answer

The term "F.O.B. Hartford, Connecticut" indicates that the risk of loss passes to the buyer (Inga) only when the goods reach Hartford. Since the sponges never arrived, the California company bears the loss.

Inga Runs a Swedish Health Spa in Connecticut