Candy Corporation orders Double Chocolate Bars from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in
A) Candy only.
B) Edibles only.
C) both Candy and Edibles.
D) neither Candy nor Edibles.

Question

Candy Corporation orders Double Chocolate Bars from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in
A) ​Candy only.
B) ​Edibles only.
C) ​both Candy and Edibles.
D) ​neither Candy nor Edibles.

Quizplus · Accepted Answer

Both Candy Corporation and Edibles Distribution Company have an insurable interest in the goods. Candy Corporation has an insurable interest because they have placed the order and have a financial stake in receiving the goods. Edibles Distribution Company has an insurable interest because they are responsible for the goods until they are delivered to Candy Corporation and could suffer financial loss if the goods are damaged or lost during transport.

Candy Corporation Orders Double Chocolate Bars from Edibles Distribution Company