Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is
A)a bill of lading.
B)a destination contract.
C)a shipment contract.
D)a warehouse receipt.

Question

Quizplus · Accepted Answer

A shipment contract requires the seller to ship the goods to the buyer via a common carrier but does not require the seller to deliver the goods to a specific destination. The mention of Sweet Fruits being required to ship the strawberries to Red Bev by Truck Transport Inc. indicates that it is a shipment contract, as the focus is on the shipping obligation rather than the delivery to a specific location.

Red Bev LLC Contracts to Buy Two Tons of Strawberries