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Jelly Manufacturer,a Food Processor in Chicago,placed a Phone Order with Grape

Question 40

Multiple Choice

Jelly Manufacturer,a food processor in Chicago,placed a phone order with Grape Grower,a grower in California,for a quantity of perishable product.The shipping term was "CIF" with payment to be made on delivery.Grower delivered the goods called for in the contract to a carrier and contracted for their shipment.However,it neglected to have the goods shipped under refrigeration.The goods were loaded on a non-refrigerated boxcar and as a result the product was spoiled when it reached Chicago.Under these circumstances:


A) Grape Grower bears risk of loss as he did not insure the goods.
B) Jelly bears the risk of loss because under CIF shipment the buyer has to bear all risks.
C) Jelly bears the risk as the contract did not mention that Grape Grower guarantee their delivery.
D) Grape Grower bears the risk of loss because under a CIF shipment,the seller bears the expense and the risk of loading the goods.

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