Question

Maple Interiors, located in Boston, contracted to sell and ship sofas to Peach Furniture, located in Atlanta. The contract stated that the goods were to be shipped "F.O.B. Boston, via XYZ railroad." Maple delivered the sofas to XYZ railroad. They were shipped from Boston but never seen again. Both Peach and Maple had assumed that the other party had the risk of loss, so neither had obtained insurance. Who must bear this loss?

A. Peach must bear the loss because the risk passed to it after the sofas were placed on the loading dock at Maple's warehouse.

B. Peach must bear the loss because the risk passed to it after the sofas were delivered to XYZ railroad.

C. Maple must bear the loss because the goods were never tendered to Peach.

D. Maple must bear the loss because in any sale by a merchant, risk does not pass until the actual delivery of the goods to the buyer.

Answer

This answer is hidden. It contains 220 characters.