UCC: Delivery & Risk of Loss Flashcards
risk of loss
under UCC ks, risk of loss issues arise when goods are lost or destroyed
two types of shipping
- shipment by carrier
- non-carrier delivery
shipment by carrier
k types determines risk of loss (ROL)
two types
* shipment ks
* destination ks
eg FedEx, UPS, USPS
shipment k
seller only obligated to ship goods to buyer
Requirements
1. seller delivers goods to common carrier, and
2. arranges delivery, and
3. notifies buyer
ROL: passes to buyer when seller delivers goods to carrier
- before buyer gets goods
ET: assume shipment k unless indicated otherwise
if K is otherwise silent on shipping terms, shipment K is presumed if K requires shipment by 3P carrier
destination k
seller obligated to ensure goods reach buyer
- seller must deliver goods to buyer’s location
ROL: passes to buyer only when buyer takes delivery
non-carrier delivery
goods not shipped by common carrier
Two types:
1. merchant seller
2. non-merchant seller
merchant seller
ROL passes to buyer when he takes physical possession
non-merchant seller
ROL passes to buyer upon tender of delivery
goods destroyed before ROL passess
K is avoided if NO party is at fault
- carrier’s fault
“FOB [location]
risk passes to buyer @ named location
ROL: seller bears risk and expense of getting goods to the named location, at which point risk passes to buyer
IMP NOTE: shipment k if @ seller’s city
eg, A in Akron sells goods to B in Boise; K states “FOB Boise”; A is responsible for getting goods to Boise, then risk passes to B
FOB definition
free on board
breach & ROL
if buyer rejects defective goods or revokes acceptance, ROL does NOT pass to buyer UNTIL defects are cured or she accepts
