Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by
A) Grocers.
B) Hilltop.
C) Refrigerated.
D) all of the parties as tenants in common in equal measure.

Question

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by
A) ​Grocers.
B) ​Hilltop.
C) ​Refrigerated.
D) ​all of the parties as tenants in common in equal measure.

Quizplus · Accepted Answer

"F.O.B. Hilltop Farms" means "Free On Board" at Hilltop Farms, indicating that the risk of loss passes to Grocers Mart once the berries are delivered to the carrier, Refrigerated Trucking Company. Therefore, Grocers Mart bears the loss.

Grocers Mart Buys One Hundred Cases of Berries from Hilltop