On May 2, Lace Corp., an appliance wholesaler, offered to
sell appliances worth $3,000 to Parco, Inc., a household appliances
retailer. The offer was signed by Lace’s president, and provided
that it would not be withdrawn before June 1. It also included
the shipping terms: “FOB Parco’s warehouse.” On May
29, Parco mailed an acceptance of Lace’s offer. Lace received the
acceptance June 2.
If Lace inadvertently ships the wrong appliances to Parco
and Parco rejects them two days after receipt, title to the goods
will

Pass to Parco when they are identified to the contract.
Pass to Parco when they are shipped.
Remain with Parco until the goods are returned to
Lace.
Revert to Lace when they are rejected by Parco.