Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. The parties agree to ship the oranges "F.O.B. Quaff n' Quench " via Swiftline Trucking Company. The oranges rot in transit. The loss is suffered by
A) Quaff n' Quench.
B) Sham.
C) F.O.B.
D) Reynaldo.

Question

Quaff n' Quench Café buys twenty-five crates of oranges from Reynaldo Produce, Inc. The parties agree to ship the oranges "F.O.B. Quaff n' Quench " via Swiftline Trucking Company. The oranges rot in transit. The loss is suffered by
A) ​Quaff n' Quench.
B) ​Sham.
C) ​F.O.B.
D) ​Reynaldo.

Quizplus · Accepted Answer

Since the agreement was to ship the oranges F.O.B. Quaff n' Quench, which means the ownership and responsibility for the goods transfers to Quaff n' Quench once they are loaded onto the carrier, the loss is suffered by Reynaldo Produce, Inc. as they are the ones who contracted the carrier and are responsible for the safe delivery of goods.

Quaff N' Quench Café Buys Twenty-Five Crates of Oranges from Reynaldo