Little Jewelry Store orders display racks from Marketing Supplies, Inc. (MSI). MSI mistakenly ships racks of the wrong size and color, which Little rejects and returns via New Shipping Company. During the re?turn, the racks are lost. The loss is suffered by
A) Little only.
B) Little and MSI, but not New Shipping.
C) Little, MSI, and New Shipping.
D) MSI only.

Question

Quizplus · Accepted Answer

The loss is suffered by MSI only because the goods were rejected by Little Jewelry Store due to MSI's mistake. Until the correct goods are delivered, the risk of loss remains with MSI.

Little Jewelry Store Orders Display Racks from Marketing Supplies, Inc