Spudz,an Iowa corporation,agreed to sell Bob two carloads of potatoes at "$5 per sack,FOB Iowa shipping point." Spudz had the potatoes put aboard the railroad cars; however,it did not have floor racks used in the cars under the potatoes as is customary during winter months.As a result,there was no warm air circulating and the potatoes were frozen while in transit.Spudz claims that its obligations ended with the delivery to the carrier and that the risk of loss was on Bob.What argument would you make for Bob?F.O.B.basis,the seller,in the absence of instructions from the buyer,is responsible for using reasonable care and judgment in making shipping arrangements.The failure to use floor racks was a breach of this duty to use reasonable care in making shipping arrangements.Therefore,the seller is in breach and is liable for the damages sustained.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q40: Farmer Tom entered into a contract with
Q41: Peds,a wholesale shoe distributor,ordered a quantity of
Q43: The doctrine that permits a party to
Q44: When the seller does not give the
Q44: Can a buyer reject goods for nonconformity
Q46: If a buyer becomes concerned that the
Q47: What does it mean to require parties
Q48: The Code rule that determines when,a person
Q49: PC Corp.entered into a contract with Easy
Q50: Campus Bus Service entered into a contract
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents