Brothers Cafe buys 100 bags of oranges from Sisters Citrus Company. The parties agree to ship the oranges "F.O.B. Brothers Cafe" via Tonnage Trucking Company. The oranges rot in transit. The loss is suf?fered by
A) Brothers Cafe and Sisters Citrus, but not Tonnage Trucking.
B) Brothers Cafe only.
C) Brothers Cafe, Sisters Citrus, and Tonnage Trucking.
D) Sisters Citrus only.

Question

Quizplus · Accepted Answer

"F.O.B. Brothers Cafe" means that the risk of loss passes to Brothers Cafe only when the goods reach their destination. Since the oranges rotted in transit, the loss is suffered by Sisters Citrus, as the risk had not yet transferred to Brothers Cafe.

Brothers Cafe Buys 100 Bags of Oranges from Sisters Citrus