On July 1, John, who owns a laptop retail store, sent a purchase order to Laptops USA offering to purchase 1000 IBM Thinkpad laptops for $400 each. On July 10 Laptops USA sent to to John a fax that accepted the order, and provided that "delivery to occur within 90 days." John needed the laptops by August 1. John did not respond to the acceptance. When he had not received the laptops on August 15, John sent to Laptops USA a letter notifying them that they were in breach of the contract and that he would not be paying for the laptops.

On September 1, Laptops USA placed 1000 IBM ThinkPad laptops on a pallet and marked them for shipment to John. On September 5, Laptops USA shipped to John by Yellow Freight Trucking Company 1000 IBM ThinkPad laptops, and included a bill for $400,000. John refused to accept the shipment of the laptops, and refused to pay the bill, asserting instead that Laptops USA had breached the contract when it did not deliver the laptops in a timely manner. When the laptops were on the way back to Laptops USA, they were destroyed in an accident, through no fault of the trucking company.

ANSWER THE FOLLOWING QUESTIONS.

DO NOT RESTATE THE QUESTION, JUST PUT THE NUMBER OF THE QUESTION AT THE BEGINNING OF YOUR ANSWER TO EACH PART.

1. When did identification of the goods occur. State and explain the rule that applies and the facts that support your answer. (10 pts).
2. When did Title to the laptops transfer to the buyer. State and explain the rule that applies and the facts that support your answer. (10 pts).
3. Who bears the risk of loss for the destroyed laptops, the seller or buyer. State and explain the rule that applies, and state the facts that support your answer. (10 pts).