My-Tee Purchasing Corporation orders from National Sales, Inc., goods that are stored in a Outstate Properties, Inc., warehouse. My-Tee pays for the goods, delivery is via the transfer of a negotiable warehouse receipt, and My-Tee moves the goods out of the warehouse. The risk of loss passes to My-Tee when it
A) orders the goods.
B) pays for the goods.
C) receives the negotiable warehouse receipt.
D) moves the goods out of the warehouse.

Question

Quizplus · Accepted Answer

The risk of loss passes to My-Tee when it receives the negotiable warehouse receipt, as this signifies the transfer of ownership and control over the goods.

My-Tee Purchasing Corporation Orders from National Sales, Inc