[seattleacct]

I feel like I’m receiving contradicting information between CPAexcel & WTB regarding the timing of when the risk of loss passes on to the buyer.

For example:

West purchased a painting from Noll, who is not in the business of selling art. West is picking up the painting from Noll. Noll tendered delivery of the painting after receiving payment in full from West. West informed Noll that West would be unable to take possession of the painting until later that day. Thieves stole the painting before West returned. The risk of loss:

A. Remained with Noll, because West had not yet received the painting

B. Remained with Noll, because the parties agreed on a later time of delivery

C. Passed to West at the time the contract was formed and payment was made

D. Passed to West on Noll’s tender of delivery

The answer is D, so the buyer has the risk of loss even though he had not pick up the painting from the seller’s shop. Yet, WTB says the buyer must take possession of the good for the risk of loss to pass.

What rule am I missing as to when the risk of loss passes to the buyer vs. when it doesn’t? Does it have to do with the seller not being a merchant?

B:76
A:64, 73, 91!
R:77
F:76

CPAexcel, Wiley Test Bank, Ninja Audio & Notes

[Whopper Warrior]

Yes, a merchant is held to a higher standard then a guy at a yard sale. If you buy a couch and then go to get a truck and it rains before you pick it up:

a yard salesman might throw a tarp over it, but couches are heavy and you technically bought it, not his problem.

a merchant however should have adequate facilities to house the merchandise untill you poick it, up ie a roof becuase they are in the business of selling couches. It is their responsibility to hold it until you take actual acceptante.

.

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Whopper Warrior]

Yes, a merchant is held to a higher standard then a guy at a yard sale. If you buy a couch and then go to get a truck and it rains before you pick it up:

a yard salesman might throw a tarp over it, but couches are heavy and you technically bought it, not his problem.

a merchant however should have adequate facilities to house the merchandise untill you poick it, up ie a roof becuase they are in the business of selling couches. It is their responsibility to hold it until you take actual acceptante.

.

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Author]

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