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Facts: Dairy farmer Johnson enters into an agreement with Pioneer Grain to purchase 30 tons of #2 spec organic corn feed FOB Johnsons farm. Pioneer

Facts: Dairy farmer Johnson enters into an agreement with Pioneer Grain to purchase 30 tons of #2 spec organic corn feed FOB Johnsons farm. Pioneer delivered the corn via a third party, D9 Farms, Inc., on 12/11/19. On 1/8/20 Johnson noticed that the corn appeared to be moldy and heating up but continued to feed the corn to his cattle. Johnson contacts Pioneer and tells them to get it off of his property stating that the cows are not producing milk and three cows are sick. Pioneer advised him to spread out the corn and let it cool. On 1/10/20 Johnson secures a new load of corn from another source (AMG). On 1/11/20 Pioneer shows up at Johnsons farm and advises Johnson to spread the corn out. Johnson refuses to pay for the corn and files an insurance claim against Pioneer which is denied.

  1. Assume the corn got wet from rain before it was delivered to Johnson. Who assumed the risk of loss? Explain.
  2. Would it make a difference if the grain was not #2 organic corn but a lesser quality? Explain.
  3. Assume the corn was, indeed, bad. Does Pioneer have the right to cure the problem?
  4. Does the fact that Johnson accepted the grain and fed it to his cattle waive his right to reject?
  5. Does Johnson have an insurable interest in the goods?

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