Red's Roofing buys asphalt roofing tiles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles warehouse" to Red's Roofing location via Tristate Shipping Corporation. The tiles are lost in transit. The loss is suffered by

Question

Quizplus · Accepted Answer

In this case, the risk of loss or damage passes from Shingles, Inc. to Red's Roofing at the point of shipment. Therefore, Red's Roofing bears the risk of loss, and they will need to file a claim with Tristate Shipping for the lost tiles. Shingles, Inc. fulfilled their obligation by delivering the tiles to the carrier, and they are not responsible for the loss. The loss does not affect Red's customers directly, so choice D is not applicable.

Red's Roofing Buys Asphalt Roofing Tiles from Shingles, Inc