Under Article 2 of the UCC,what happens to the risk of loss when a buyer breaches a contract by refusing to take delivery of conforming goods?
A) The buyer bears the risk of loss, but only for a commercially reasonable time.
B) The buyer bears the risk of loss permanently.
C) It shifts back to the seller if it had already shifted to the buyer.
D) The buyer bears the risk of loss, but only in the case of an unjustified breach.
E) The risk is on the buyer but only for a maximum by law of 7 days.

Question

Quizplus · Accepted Answer

According to Article 2 of the UCC, the risk of loss shifts from the seller to the buyer upon delivery of the goods. However, if the buyer breaches the contract by refusing to take delivery of conforming goods, the buyer still bears the risk of loss for a commercially reasonable time, which is determined by the circumstances of each case. This means that the seller may still be able to recover damages from the buyer, but the seller would need to mitigate its losses.

Under Article 2 of the UCC,what Happens to the Risk