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musicall musicall
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6 years ago
Risk of Loss. Isis Foods, Inc, located in St. Louis, wanted to purchase a shipment of food from Pocasset Food Sales, Inc The sale of food was initiated by a purchase order from Isis stating that the shipment was to be made F.O.B. St. Louis. Pocasset made the shipment by delivery of the goods to the carrier. Pocasset's invoices contained a provision stating Our liability ceases upon delivery of merchandise to carrier. The shipment of food was destroyed in transit before reaching St. Louis. Discuss which party bears the risk of loss and why.
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wrote...
6 years ago
Risk of loss
Pocasset has the risk of loss. Section 2-319 of the UCC, in defining the F.O.B. term, and case law interpreting the term have developed a fixed interpretation that F.O.B. indicates the point at which delivery is to be made and the point at which risk of loss is passed. Any contrary term in Pocasset's invoices could become a provision of the contract only if accepted by Isis. There was no evidence of such acceptance, so the F.O.B. term of the purchase order controls. Risk of loss does not pass to Isis until the goods are tendered for delivery in St. Louis. Since the goods were destroyed prior to tender of delivery in St. Louis, the loss falls on the seller, Pocasset.
musicall Author
wrote...
6 years ago
Confirmed correct
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