Answer each question in ten sentences or less using IRAC format

1) Marshall Clothing (Seller) entered a shipment contract with Chase Department Stores (Buyer) to send them 3,000 black robes via Mercury Shipping Co. The robes were irreparably damaged in Mercury's warehouse by moths. Who (the seller or the buyer) bears the risk of loss and why?

2) Grocer orders 50 gallons of whole milk from Dairy to be delivered December 23. On December 20 he receives 60 gallons of skim milk. He rejects the order but does not inform Dairy of his rejection. On January 2, Dairy demands full payment.Does the Grocer have an obligation to pay? Why or why not?

(IRAC AND ORGANIZATION)

1) Whether the Seller (or the Buyer) bears the risk of loss.

In a shipment contract, the risk passes to the buyer when the seller delivers the goods to the carrier.

Here, ____________________________________ (Analyze the facts against the rule and explain your answer using the word "because" to explain who bears the risk of loss. Any counterarguments?).

In conclusion, _______________________________ (Answer the question who bears the risk of loss).

2) Whether the Grocer has an obligation to pay Dairy.

- Did Dairy breach by Sending Nonconforming good (IRAC this issue)

Merchandise that differs from what is specified in the contract.

Here, _____________________________ (Explain if the goods delivered by the seller to the buyer nonconforming goods and why).

Conclusion, ____________________ (Answer question whether Dairy breached by sending nonconforming goods).

- Rejection or Revocation of Acceptance of Nonconforming Goods (IRAC this issue)

(These rules are from both Chapters 22 and 23). When buyer rejects nonconforming goods, risk of loss and remains with seller. The buyer can cancel the contract and does not have to pay until the seller cures the defect or the buyer decides to accept the goods. When buyer accepts, but then rightfully revokes acceptance, risk remains with seller to the extent that buyer's insurance will not cover the loss. Also, the buyer does not have to pay for non-conforming goods after proper revocation of acceptance.

Here, _____________________________________ (Analyze, explain if the nonconforming goods were properly rejected and how do you know. Did the Buyer allow the Seller to cure? Explain if the non-conforming goods were accepted or if there was any kind of rejection of the acceptance. Explain what the consequence of improper rejection or revocation of acceptance would be - the buyer has to pay the seller for the goods received. Any counterarguments by Dairy?).

In conclusion, ____________________ (Answer the question whether the Grocer has an obligation to pay).