Patty buys a Persian rug from James, a plumber, in an online auction. James called Patty on Wednesday to inform her that she submitted the winning bid and that she could pick it up anytime or he would ship the rug to her on Friday. On Thursday, the rug was destroyed in a garage fire at James' house. Which of the following statements is true in this case?
A) James bears the loss as he has not delivered the goods.
B) James bears the loss as he has tendered delivery of goods.
C) Patty bears the loss as James is not a merchant.
D) Patty bears the loss as James was only providing a service.

Question

Quizplus · Accepted Answer

The risk of loss passes to the buyer on receipt of the goods if the seller is a merchant. If the seller is not a merchant, the risk passes to the buyer when the seller tenders (offers) delivery of goods (2-509[3]).

Patty Buys a Persian Rug from James, a Plumber, in an Online