Harry contracts with George Habash to sell him 500 cartons of Popular Potato Chips. Harry selects goods that conform to the contract terms, packages them up and leaves them on his loading dock for UPS to deliver to George. Before the truck arrives, however, Pete arrives in a pickup truck and steals the chips. As between Harry and George, who bears the risk of loss?

Select one:

a.

Harry

b.

Harry, if this was a shipment contract

c.

Harry, if this was a destination contract

d.

George

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Pete has been a little naughty: he bought Don's Cadillac but gave him a bad check for it, and he obtained Bert's valuable painting, The Kraken, by fraud. Pete sells the Cadillac to Betty and the painting to Peggy, in both cases for the fair market value. Pete disappears with the money, and both Don and Bert sue to get their possessions back. Who wins?

Select one:

a.

Don

b.

Bert

c.

Both Don and Bert

d.

Neither Don nor Bert