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UCC Contracts QUESTION #5858
Question 1
A Seller sends a shipment of 'FOB Seller’s City.' The goods are damaged in a train wreck. Who bears the risk of loss?
  • The Seller, until the goods reach the Buyer.
  • The Buyer, because risk passed when the goods were delivered to the carrier.✔️
  • The Train Company, automatically.
  • The Buyer and Seller share the loss.
Correct Answer Explanation
In a 'Shipment Contract' (FOB Place of Shipment), the risk of loss passes to the buyer when the goods are delivered to the carrier.