The Benson Bearing Company sells Textron,Inc.a quantity of baseball bats that were stored in an independent warehouse at the time of the sale.The contract says that Textron is to pick up the bats at the warehouse.The risk of loss passes to Textron:
A)at the time of the contract.
B)at the time it receives a negotiable warehouse receipt for the bats.
C)at the time it pays for the bats.
D)at the time it picks up the bats.

Question

Quizplus · Accepted Answer

If the goods are in the possession of a third-party bailee (like a warehouseman)and are to be delivered without being moved,the risk of loss passes to the buyer upon delivery to him by a negotiable document of title for the goods.

The Benson Bearing Company Sells Textron,Inc