Asked by Jenna Wright on Jul 18, 2024
Verified
Roofing Contractor LLC buys roof tiles from Shingles Inc. The parties agree that the tiles will be shipped "F.O.B. Shingles" to Roofing via Tristate Shipping Corporation. The goods are lost in transit. The loss is suffered by
A) Tristate.
B) Shingles.
C) Roofing.
D) consumers by an increase in the prices of tiles and shipping.
Roof Tiles
Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.
- Grasp the timing for the transfer of loss risk in multiple scenarios linked to commodities under a contract.
- Comprehend the consequences of Free On Board terms concerning risk of loss and transportation charges in contractual sales.
Verified Answer
AG
Anthony GreenJul 19, 2024
Final Answer :
C
Explanation :
"F.O.B. Shingles" means that the risk of loss passes to the buyer (Roofing Contractor LLC) once the goods are delivered to the carrier (Tristate Shipping Corporation). Therefore, Roofing bears the loss of the goods in transit.
Learning Objectives
- Grasp the timing for the transfer of loss risk in multiple scenarios linked to commodities under a contract.
- Comprehend the consequences of Free On Board terms concerning risk of loss and transportation charges in contractual sales.