Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is
A) a bill of lading.
B) a destination contract.
C) a shipment contract.
D) a warehouse receipt.

Question

Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is
A) ​a bill of lading.
B) ​a destination contract.
C) ​a shipment contract.
D) ​a warehouse receipt.

Quizplus · Accepted Answer

The contract between Big Red Drinks, Inc. and Super Fruits, Inc. is a shipment contract since it specifies that Super Fruits is responsible for shipping the two tons of cranberries to Big Red Drinks. In a shipment contract, the seller is responsible for delivering the goods to the carrier, but the buyer assumes the risk of loss or damage during transportation.