Crucial Exams

Multistate Bar Examination Practice Question

A retail furniture company (Buyer) contracts to purchase 50 dining room tables from a manufacturer (Seller). The contract specifies that the tables are to be picked up by a third-party carrier at the Seller’s warehouse. The Seller ensures the tables are properly loaded onto the carrier’s truck. While in transit, the truck is involved in an accident, and 20 of the tables are damaged. Assuming there are no additional provisions in the contract about risk allocation, who is responsible for the loss and why?

  • The Buyer is responsible because risk of loss transferred to the Buyer once the Seller handed the goods over to the carrier.

  • The Buyer and Seller share responsibility because the contract does not specify how to handle this issue.

  • The Seller is responsible because the goods had not yet been physically delivered to the Buyer’s location.

  • The carrier is responsible because it was in possession of the goods when the damage occurred.

Multistate Bar Examination
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