Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of
A) physical possession.
B) product liability.
C) risk of loss.
D) title.

Question

Quizplus · Accepted Answer

According to the UCC, the concept of risk of loss determines which party bears the economic loss when goods are lost, damaged, or destroyed. Since Wanda did not yet take physical possession of the goods, the risk of loss falls on Uri, the seller. Therefore, Uri bears the economic loss of the lost goods.

Uri Sells 100 Cases of Vitamins to Wanda, but Before