Question
The Pizza Palace in Springfield, MA contracted with Ragu Sauce Co. in LosAngeles, CA to buy 1,000 cases of of pizza sauce from Ragu.The contract
The Pizza Palace in Springfield, MA contracted with Ragu Sauce Co. in LosAngeles, CA to buy 1,000 cases of of pizza sauce from Ragu.The contract called for the sauce to be sent FOB, Los Angeles.During transit the truck carrying the sauce has an accident in Pennsylvania and all of he sauce was ruined before it could be delivered.
a.Who has the risk of loss?Why?
b.Assuming the truck doesn't have an accident and on the delivery date Ragu delivers all the sauce to the Pizza Palace.The Pizza Palace rejects the the goods because they don't think it will be up to their usual standards.On the way back to Los Angeles the truck carrying the sauce has an accident and all thesauce was ruined. Who has title and who has risk of loss to the goods?Explain.
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