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Read the BELOW attached opinion by a federal district court judge in Pennsylvania relating to a destination contract under the UCC. Essentially, the seller shipped the machine to the buyer using a trucking company. While in transit, the machine fell from the trailer and was destroyed. The court ruled that the UCC allocated risk of loss to the buyer. Do you agree with the Court's decision. Why?

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jepessoa

Answer:

Yes, I agree. Under UCC rules, the risk of loss is assigned to a party depending on the type of transaction. If a transaction is FOB shipping point, the title passes to the buyer at the moment that the merchandise exits the seller's shipping dock. If the sale is made FOB destination, the title passes only after the merchandise is delivered.

If the title had already passed from the seller to the buyer, the risk of loss is allocated to the buyer.

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