Would your answer in Question (b) be the same if this was an F.O.B. Knoxville contract, all other facts remaining the same? Explain.

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Would your answer in Question (b) be the same if this was an F.O.B. Knoxville contract, all other facts remaining the same? Explain.

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Brown, located in Knoxville, contracted to buy sixty cases of Lovely Brand canned corn from Clark in Toledo at a contract price of $1,250. Pursuant to the contract, Clark selected and set aside sixty cases of Lovely Brand canned corn and tagged them “For Brown.” The contract required Clark to ship the corn to Brown via T Railroad, F.O.B. Toledo. Before Clark delivered the corn to the railroad, the sixty cases were stolen from Clark’s warehouse.

Who is liable for the loss of the sixty cases of corn, Brown or Clark?

Brown, located in Knoxville, contracted to buy sixty cases of Lovely Brand canned corn from Clark in Toledo at a contract price of $1,250. Pursuant to the contract, Clark selected and set aside sixty cases of Lovely Brand canned corn and tagged them “For Brown.” The contract required Clark to ship the corn to Brown via T Railroad, F.O.B. Toledo. Before Clark delivered the corn to the railroad, the sixty cases were stolen from Clark’s warehouse.

Suppose Clark had delivered the corn to the railroad in Toledo. After the corn had been loaded on a freight car but before the train left the yard, the car was broken open and its contents, including the corn, stolen. As between Brown and Clark, who is liable for the loss? Why?

Brown, located in Knoxville, contracted to buy sixty cases of Lovely Brand canned corn from Clark in Toledo at a contract price of $1,250. Pursuant to the contract, Clark selected and set aside sixty cases of Lovely Brand canned corn and tagged them “For Brown.” The contract required Clark to ship the corn to Brown via T Railroad, F.O.B. Toledo. Before Clark delivered the corn to the railroad, the sixty cases were stolen from Clark’s warehouse.

Would your answer in Question (b) be the same if this was an F.O.B. Knoxville contract, all other facts remaining the same? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Under the Uniform commercial code, a deal could be considered an advancement of the subject from a retailer to a customer for a determined price.
When a customer violates an agreement, the probability of loss is immediately transferred to the retailer. Somehow, in this case, Individual C has violated the contract as they were unable to transport the goods to their destination.

Verified Answer

In this case, Individual C, who is the retailer, may bear the probability of loss. Although, the goods in agreement have been identified as existing goods, which is included in the agreement. In addition, as Individual B has a special property in the goods under Section 2-501 of the Uniform commercial code, this may not affect the subject or risk of loss to advance to the customer.
Here, the stated goods were taken off before they were transported to Individual B. As a result, Individual C may be responsible.

Explanation

The purchaser, that is, Individual B, carries the risk of failure. The contract was free on board under Section 2-509 (1)(a) of the uniform commercial code. This contract was situated at Place T at which the goods were properly shipped to the carrier.
Under free on board, the buyer may pay the transportation of goods’ charges once they receive the goods.
However, The retailer is still exposed to the risk as the goods have been transferred in a carriage.

Verified Answer

In this case, Individual B, who is the customer, may have to bear the responsibility. Uniform commercial code’s Section 2-509 (1) (a) states that the agreement may be considered to be free on board, which means that the customer may be at risk and take possession of goods once the retailer crafts the product. Here, the goods were to be provided to the bearer that was present at Place T.

Explanation

Free on board may specify whether the retailer or the customer is answerable for goods that are destroyed during the transportation.
When used with an identified physical location, the nomination may specify the party that may have liability for the payment of the freight charges and the point subject for the transportation passes from the retailer to the customer.
Individual C may be responsible for keeping up the chance of failure until the items have been appropriately delivered to their destination.

Verified Answer

Here, under the trade terms of free on board and Person B's contracted conditions, Person C might be liable to hold up the threa

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