Li'l Jewelry Store orders display racks from Mark-Up Supplies,Inc.(MSI).MSI mistakenly ships racks of the wrong size and color,which Li'l rejects and returns via Nevermind Shipping Company.During the return,the racks are lost.The loss is suffered by
A)Li'l only.
B)Li'l and MSI,but not Nevermind.
C)Li'l,MSI,and Nevermind.
D)MSI only.

Question

Quizplus · Accepted Answer

The loss is suffered by MSI only because they shipped the wrong items, and Li'l Jewelry Store rejected them. Once rejected, the risk of loss remains with MSI until the goods are correctly delivered.

Li'l Jewelry Store Orders Display Racks from Mark-Up Supplies,Inc