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Spudz,an Iowa Corporation,agreed to Sell Bob Two Carloads of Potatoes

Question 45

Essay

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.

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When goods are sold on an F.O.B.basis,th...

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