Organicos Café orders five gallons of PureMaid-brand trans fat-free olive oil from Quico Cooking Supplies, Inc. Quico mistakenly ships soy oil, which Organicos keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by

Question

Quizplus · Accepted Answer

Organicos Café, as the buyer of the nonconforming product, bears the risk of loss under the Uniform Commercial Code (UCC). Additionally, the fact that the oil was destroyed in a fire is considered an "unforeseeable intervening event" or "force majeure," which further shifts the risk of loss to Organicos Café. PureMaid would only be liable if they had breached the contract by delivering the wrong product, but Organicos Café chose to accept and keep the nonconforming product. Quico Cooking Supplies may bear some responsibility for the mistake, but they would not be liable for the loss of the product due to the fire.

Organicos Café Orders Five Gallons of PureMaid-Brand Trans Fat-Free Olive