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Joe orders 1000 red widgets from Widgets-R-Us. The contract specifies that it is a shipment contract. Widgets-R-Us ships 1000 blue widgets. During shipment, the widgets

Joe orders 1000 red widgets from Widgets-R-Us. The contract specifies that it is a shipment contract. Widgets-R-Us ships 1000 blue widgets. During shipment, the widgets are destroyed. As between Joe and Widgets-R-Us, who bears the loss?

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Joe, because in a shipment contract the risk of loss passes to the Buyer when the Seller places the goods with the carrier.

Widgets-R-Us because the widgets were non-conforming

They split the loss equally

none of the above

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