EZ Equipment Corporation leases six forklifts to Faulty Refining Company, but as the forklifts are delivered, they are lost in an explosion. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of

Question

Quizplus · Accepted Answer

The concept of risk of loss governs who will bear the loss in a situation where goods are damaged or destroyed before delivery. In this case, since the forklifts were lost in an explosion, the issue of risk of loss will determine whether EZ Equipment or Faulty Refining Company is responsible for the loss.

EZ Equipment Corporation Leases Six Forklifts to Faulty Refining Company