Multistate Bar Examination Practice Question

The correct answer is that the retailer bears the risk of loss because the agreement provides that the goods are made available for pickup at the manufacturer’s warehouse. Under UCC § 2-509, when such terms specify that the buyer is responsible for arranging transport from the seller’s location, the risk of loss passes to the buyer once the seller has tendered the goods. Tender occurs when the goods are set aside for the buyer and made available for pickup, even if the actual transfer to the shipping carrier has not yet occurred. Therefore, the manufacturer is relieved of responsibility once this tender happens.

Incorrect answers: Some answers incorrectly claim the manufacturer retains the risk of loss because the fire destroyed the goods before shipment. This misapplies the principle of tender under the UCC, as the seller’s responsibility ends once the goods are made available to the buyer at the agreed-upon location.