Royal Cafe buys 100 bags of oranges from Sweet Citrus Company.The par?ties agree to ship the oranges "F.O.B.Royal" via Terrific Trucking Company.The oranges rot in transit.The loss is suf?fered by

Question

Quizplus · Accepted Answer

Under "F.O.B. Royal," the risk of loss passes to the buyer (Royal Cafe) once the goods are shipped. However, since the term is "F.O.B. Royal," it indicates that the seller (Sweet Citrus Company) retains the risk until the goods reach the buyer's location. Therefore, Sweet Citrus Company bears the loss.

Royal Cafe Buys 100 Bags of Oranges from Sweet Citrus