Diners Cafe orders five gallons of corn oil from EZ Distributors,Inc.EZ mistakenly ships olive oil,which Diners keeps,despite the nonconformity.The oil is destroyed in a fire.The loss is suffered by

Question

Quizplus · Accepted Answer

Diners chose to keep the olive oil despite it being nonconforming, so they are responsible for its loss in the fire. EZ Distributors may be responsible for the initial mistake, but Diners' decision to keep the nonconforming product constitutes acceptance of the goods and transfers the risk of loss to them. Diners' customers are not involved in this situation.

Diners Cafe Orders Five Gallons of Corn Oil from EZ