Newton orders 14 electric staplers for his office supply store from Home Office Suppliers.The contract specifies shipping terms as "F.O.B.Home Office Suppliers." Home Office Suppliers delivers the goods to Zippy Shippers and invoices Newton.The electric staplers never arrive,and Newton refuses to pay Home Office Suppliers.Home Office Suppliers sues Newton for the contract price of the staplers.Who wins?
A) Newton,because it wasn't his fault that the staplers never arrived.
B) Home Office Suppliers,because they were the last ones to touch the goods.
C) Newton,because in an F.O.B.contract,the risk of loss does not shift to the buyer until the goods are actually delivered to the buyer.
D) Home Office Suppliers,because in an F.O.B.seller contract,risk of loss shifts to the buyer when the seller delivers the goods to the carrier.
Correct Answer:
Verified
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