Question
Molly operates a business in Kirksville that manufactures and sells bobble head dolls. Molly enters into a contract to manufacture and sell 25,000 Yadier Molina
Molly operates a business in Kirksville that manufactures and sells bobble head dolls. Molly enters into a contract to manufacture and sell 25,000 Yadier Molina bobble head dolls to the St. Louis Cardinals LLC for a total price of $150,000. The contract states: "FOB St. Louis." Molly's business manufactures the dolls and loads them on a Bailey Transportation, Inc. tractor trailer. Shortly after loading the tractor trailer, a tornado hits the Kirksville area and destroys the tractor trailer and the bobble head dolls. Sadly, there is no insurance that covers the bobble head dolls. What is the result?
A. | The St. Louis Cardinals LLC will have to pay Molly $150,000 despite the destroyed cargo because a buyer of merchandise in the ordinary course of business has the risk of loss. | |
B. | The St. Louis Cardinals LLC will have to pay Molly $150,000 despite the destroyed cargo because the contract specification (F.O.B. St. Louis) means that the party to the contract who was from St. Louis was bearing the risk of loss. | |
C. | Molly will have to bear the loss because the contract specification (F.O.B. St. Louis) means the seller bears the risk of loss until it reaches the purchaser. | |
D. | A and B. |
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