1) Seller contracts to sell goods to the buyer. This was a destination contract. However, the buyer refused to accept these goods and returned them
1) Seller contracts to sell goods to the buyer. This was a destination contract. However, the buyer refused to accept these goods and returned them to the seller, even though they were the proper goods under the contract. Before the seller received them, the goods were destroyed by fire. Which of the following best describes this situation?
The risk of loss passes to the buyer when the contract was made.
The risk of loss passes to the buyer when the goods were delivered to the common carrier.
The risk of loss is on the seller because the goods were nonconforming goods.
The risk of loss is on the buyer because the goods were conforming goods.
2) In a noncarrier case for the sale of goods, which of the following is most important in determining when risk of loss passes?
whether the seller is a merchant
whether any warranties have been disclaimed
whether the buyer is a merchant
when title passes
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