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Millard Corp. agreed to purchase 100 radios from Rao Suppliers, Inc. Rao is a wholesaler of small home appliances and Millard is an appliance retailer.

Millard Corp. agreed to purchase 100 radios from Rao Suppliers, Inc. Rao is a wholesaler of small home appliances and Millard is an appliance retailer. The contract required Rao to ship the radios to Millard by common carrier, FOB Rao Suppliers, Inc. Loading Dock.

If the radios are lost during shipment, who is responsible?

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Millard, because title to the radios passes to Millard at the time of shipment

Rao, because it is a shipment contract.

Rao, because the risk of loss passes only when Millard receives the radios.

Millard, because the risk of loss passes when the radios are delivered to the carrier.

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