If a lessor is a merchant, the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), if the lessor is a merchant, the risk of loss passes to the lessee when they take physical possession of the goods. This means that if the goods are damaged or lost after the lessee takes possession, the lessee is responsible for any resulting loss.

If a Lessor Is a Merchant, the Risk of Loss