Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer. With a simple delivery contract in which the seller is a merchant, which party sustains a loss if, through no fault of either party, the couch is destroyed through fire prior to delivery?
A) The seller
B) The buyer
C) Loss is proportioned 50% to the buyer and 50% to the seller
D) Loss is proportioned 75% to the buyer and 25% to the seller
E) Loss is proportioned 25% to the buyer and 75% to the seller

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), when goods are destroyed before delivery and the seller is a merchant, the risk of loss remains with the seller until the buyer takes possession. Therefore, if the couch is destroyed by fire before delivery, the seller bears the loss.

Assume a Buyer and Seller Execute a Contract in Which